Changpeng Zhao, known as "CZ," is the founder and former chief executive officer (CEO) of Binance, the world's largest cryptocurrency exchange. Zhao founded Binance in 2017, which quickly grew in daily trading volume to more than $20 billion. An avid Bitcoin enthusiast, he amassed a fortune in cryptocurrency, but most of his net worth was due to his holdings in Binance Holdings Ltd. As of March 2024, Zhao is the world's 35th richest person with an estimated net worth of $39.6 billion.
On Nov. 21, 2023, Zhao pleaded guilty to money laundering–related charges in the United States. As part of his plea, he resigned from his leadership position within his firm and agreed to pay a penalty of $50 million. But the resolution of his legal troubles did not conclude with this plea agreement. As the New York Times reported, federal sentencing guidelines suggest that Zhao could be sentenced to as much as 18 months in prison; prosecutors have not ruled out the option of seeking a more severe sentence, as indicated by statements from senior officials at the Justice Department. Sentencing is now expected in late April.
Binance itself announced in a Nov. 21 statement that it had "reached resolutions with the U.S. Department of Justice, Commodity Futures Trading Commission, the Office of Foreign Assets Control, and the Financial Crimes Enforcement Network related to their investigations into historical registration, compliance, and sanctions issues." In addition to its own guilty plea, it agreed to pay more than $4.3 billion in fines and forfeitures.
Binance said in its announcement that Richard Teng, formerly the company's global head of regional markets, was taking over as CEO effective immediately.
Key Takeaways
- Changpeng "CZ" Zhao is the founder and former chief executive officer of Binance, the world’s largest cryptocurrency exchange.
- He resigned on Nov. 21, 2023 as part of an agreement with the U.S. government involving money laundering violations.
- Zhao was born in China and emigrated to Canada in 1989.
- Binance started in Singapore but was relocated several times due to regulations, before becoming a "headquarter-less" company.
- Zhao reportedly has a net worth of more than $30 billion.
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Zhao and the Collapse of Sam Bankman-Fried's FTX
Zhao was prominently in the news in November 2022 when rival exchange FTX faced a liquidity crisis. Zhao at first stopped all trading of FTX's native FTT token. Then, as FTX's troubles worsened, Zhao announced that he was in talks with FTX founder Sam Bankman-Fried to acquire FTX. The next day, Zhao said Binance was dropping its takeover bid after due diligence uncovered a shortfall of more than $6 billion and raised questions about FTX's handling of customer funds. Two days later, FTX— once valued at $32 billion—filed for Chapter 11 bankruptcy protection.
In announcing Zhao's and Binance's guilty pleas on Nov. 21, 2023, U.S. Attorney General Merrick B. Garland linked the two men's cases. “In just the past month," he said, "the Justice Department has successfully prosecuted the CEOs of two of the world's largest cryptocurrency exchanges in two separate criminal cases. The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal."
Early Life and Education
Changpeng Zhao was born on Feb. 5, 1977, in the Jiangsu province of China. His father, Shengkai, emigrated to Vancouver, Canada, in 1984 to pursue a doctoral degree, and the rest of his family arrived in 1989. The Zhao family left China just after the Tiananmen Square massacre and were able to expedite securing visas.
He was first introduced to the world of computers when his father purchased an expensive $7,000 286 DOS computer. Zhao eventually enrolled in computer programming classes and graduated with a degree in computer science from Canada's McGill University, where his father was once a visiting scholar.
Career and Founding of Binance
After his graduation from McGill, Zhao took on work as a contractor for the Tokyo Stock Exchange, then became the head of Tradebook Futures Development at Bloomberg Professional Services from 2001 to 2005. He eventually joined some friends to start an information technology (IT) consulting company, and moved to Singapore to launch Fusion Systems.
Zhao also started a few more ventures, including Bijie Tech, a provider of cloud-based services to exchanges. While the business grew, China began cracking down on cryptocurrency exchanges in March 2017, and Zhao contemplated launching his own crypto exchange.
Binance launched in July 2017, but China banned all crypto exchanges in September 2017. Zhao was forced to relocate, but instead of simply finding another country to operate in, the company went fully remote.
Binance quickly grew to become one of the biggest crypto exchanges by daily trade volume. It now operates globally, with $76 billion daily trading volume and 90 million customers worldwide. Zhao, who holds a majority stake in Binance Holdings, has experienced a significant increase in his net worth over time. During the cryptocurrency bull run in 2021, his net worth reached a peak of nearly $100 billion. In 2023, Zhao's net worth increased by almost $25 billion by the year's end, coinciding with a period when Bitcoin's value more than doubled.
Personal Life
Zhao shares little about his personal life online, though a recent profile revealed more details about his childhood.
Zhao is private about his personal life, but a recent profile shed light on his upbringing. He faced significant challenges from a young age, notably when his family moved to Canada after his father was exiled for his intellectual views when Zhao was just 8 years old. The move to Vancouver opened up new opportunities for him, including his initial forays into programming and various part-time jobs that would later influence his career path.
Zhao is not currently married. Despite his considerable financial success, he chooses a minimalist lifestyle, avoiding the usual symbols of wealth, like owning a house or a car.
What Is Changpeng Zhao's Net Worth?
Changpeng Zhao's net worth is reportedly more than $30 billion, though it fluctuates with the valuation of his company, Binance. He also may have significant crypto holdings or other assets, but this information is not disclosed publicly.
Did Binance Buy FTX?
No, but almost. On Nov. 8, 2022, Binance signed a nonbinding letter of intent (LOI) to purchase FTX, according to Zhao's announcement on Twitter. After a day of due diligence, the deal was called off, and Binance did not end up purchasing FTX. Zhao reportedly called former FTX CEO Sam Bankman-Fried "one of the greatest fraudsters in history" on Twitter. FTX later filed for Chapter 11 bankruptcy.
What Is Changpeng Zhao's Twitter Account?
Changpeng Zhao shares his thoughts on his popular X (formerly Twitter) account; his handle is @cz_binance. On Nov. 21, 2023, he announced his departure from Binance in a largely upbeat post on the platform, saying that as a "next step I will take a break first. I have not had a single day of real (phone off) break for the last 6 and half years."
The Bottom Line
Changpeng Zhao, known as "CZ," founded Binance, which rapidly grew to be the largest cryptocurrency exchange in the world by daily trading volume. With a net worth estimated at $39.6 billion as of March 2024, Zhao's story reflects the fast-paced and unpredictable world of cryptocurrency. His journey took a significant turn when he admitted guilt to charges related to money laundering in the United States, leading to his stepping down and a $50 million fine. This event emphasizes the importance of following regulatory laws in the crypto industry.
