Changpeng Zhao

Changpeng Zhao (CZ): Founder and Former CEO of Binance

Changpeng Zhao, widely known as CZ, is a Chinese-Canadian entrepreneur who founded Binance in 2017 and rapidly scaled it into the world's largest cryptocurrency exchange by trading volume. His leadership played a pivotal role in popularizing cryptocurrency trading globally and shaping the modern digital asset landscape. However, his tenure was also marked by significant regulatory challenges, culminating in a major settlement with US authorities and his departure as CEO in late 2023.

Early Life and Career Path

Born in Jiangsu, China, in 1977, Changpeng Zhao moved to Vancouver, Canada, with his family during his youth. He pursued post-secondary education in Montreal, studying computer science at McGill University. His early career was rooted in building financial technology systems; he developed software for the Tokyo Stock Exchange and later worked at Bloomberg Tradebook, where he was involved in developing futures trading software.

CZ's entry into the world of cryptocurrency occurred around 2013. He reportedly demonstrated strong early conviction by selling his Shanghai apartment to buy Bitcoin. He gained further experience in the nascent industry by working with prominent early crypto projects, including roles at Blockchain.info (now Blockchain.com) and serving as Chief Technology Officer at OKCoin.

Founding and Explosive Growth of Binance (2017-2023)

Leveraging his experience in both traditional finance trading systems and the emerging crypto sector, CZ launched Binance in July 2017. Initially founded in China, the exchange quickly moved its operations overseas due to tightening Chinese regulations.

Binance experienced unprecedented growth, becoming the world's largest crypto exchange by trading volume within six months. Several factors contributed to its rapid ascent:

• A vast selection of listed cryptocurrencies, including numerous Altcoins often unavailable on competing platforms.
• A competitive fee structure, particularly attractive for high-volume traders.
• A high-performance trading engine capable of handling significant demand.
• The successful launch of its native utility token, Binance Coin (BNB), via a $15 million Initial Coin Offering (ICO) in 2017, which offered users trading fee discounts and other benefits.
• Aggressive global expansion and marketing efforts.

Key Initiatives Under CZ's Leadership

During CZ's tenure as CEO, Binance expanded far beyond a simple trading platform:

• BNB Token & BNB Chain: Binance Coin (BNB) evolved into a core component of the ecosystem, used for fee discounts, participation in token sales, and as the native currency for Binance's own blockchain efforts. Binance launched Binance Chain and later the BNB Chain (rebranded from Binance Smart Chain - BSC), an EVM-compatible Blockchain designed for high throughput and low fees. This fostered a large ecosystem of DeFi protocols, games, and other decentralized applications (dApps) built using Smart Contracts, significantly increasing Binance's influence.
• Ecosystem Development: Binance launched various arms under CZ, including Binance Labs (its venture capital and incubation division), Binance Launchpad (a popular platform for new token sales), Binance Academy (a widely used free educational resource), and Binance Charity (its philanthropic arm).

Regulatory Scrutiny and Departure from Binance

Despite its immense success, Binance's rapid global growth under CZ consistently drew scrutiny from financial regulators worldwide. Concerns were frequently raised regarding unlicensed operations in various jurisdictions, the adequacy of Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures (especially in its earlier years), and the regulatory status of certain products or the BNB token itself.

• US Settlement (November 2023): These challenges culminated in a landmark settlement between Binance, CZ, and several US authorities, including the Department of Justice (DoJ), the Treasury Department (FinCEN, OFAC), and the Commodity Futures Trading Commission (CFTC). Binance pleaded guilty to criminal charges related to AML failures, unlicensed money transmitting, and sanctions violations, agreeing to pay penalties totaling $4.3 billion and submit to rigorous ongoing compliance monitoring.
• CZ's Plea, Resignation, and Sentencing: As part of the settlement, Changpeng Zhao personally pleaded guilty to violating the US Bank Secrecy Act regarding AML failures at Binance. He agreed to step down as CEO of Binance in November 2023 and paid a $50 million fine. Subsequently, in April 2024, CZ was sentenced to four months in federal prison. He served his sentence and was reported released from custody in September 2024.
• Leadership Transition: Following CZ's resignation, Richard Teng, previously Binance's Global Head of Regional Markets, was appointed as the new CEO, tasked with steering the company through its enhanced compliance obligations.

Legacy and Current Activities

Changpeng Zhao's impact on the cryptocurrency industry is undeniable. He built the world's dominant trading platform, drastically lowering barriers to entry for millions of users globally and popularizing numerous altcoin markets. Binance, under his leadership, became a central hub for liquidity, innovation (via BNB Chain and Launchpad), and market trends.

As of early 2025, CZ no longer holds an executive position at Binance but remains a major shareholder and an influential voice within the crypto community, often active on social media. Following his release, he has publicly stated his focus is shifting towards education, launching Giggle Academy, a non-profit initiative aiming to provide free, gamified basic education (grades 1-12) globally. He has also expressed interest in potentially investing in sectors like AI, biotechnology, and blockchain technology beyond Binance.

Notable Quote from Changpeng Zhao

"Our goal is to increase the freedom of money globally. We believe that by spreading this freedom, we can significantly improve lives around the world."

Conclusion: A Complex Legacy

Changpeng "CZ" Zhao's story is one of meteoric success and significant controversy. He masterminded the creation and expansion of Binance into an unparalleled force within the crypto industry, driving innovation and global adoption at an unprecedented scale. Yet, this rapid growth occurred alongside persistent regulatory conflicts, ultimately leading to substantial penalties, his resignation as CEO, and a US criminal conviction for AML failures. His legacy remains complex: a visionary entrepreneur who fundamentally shaped the modern crypto market, but whose tenure also highlighted the critical tension between disruptive innovation and regulatory compliance in the digital asset space. While no longer at the helm of Binance, CZ remains a prominent figure, now embarking on new ventures in education and potentially other technological fields.