Former Binance CEO, Changpeng Zhao (CZ), recently made notable statements on the occasion of the two-year anniversary of the FTX exchange collapse. In a social media post, Zhao shared his views on the sudden collapse of FTX, stating that it is similar to major financial disasters that have occurred over the past two decades.
FTX – A major shock to the Crypto industry
FTX, previously one of the largest exchanges in the world, faced a notorious bankruptcy in November 2022, leading to severe financial collapse and criminal lawsuits against founder Sam Bankman-Fried (SBF). In the months prior, FTX fell into a liquidity crisis, resulting in a series of adverse events that forced the exchange to declare bankruptcy.
Further investigations revealed that Bankman-Fried misused customer funds, leading to fraud. He was sentenced to 25 years in prison earlier this year.
Meanwhile, while maintaining its position as one of the 'big players' in the industry, Zhao cannot avoid his own legal troubles. Following investigations from the U.S. Department of Justice (DOJ), CZ was forced to resign as CEO of Binance in 2023 and served a 4-month prison sentence for failing to comply with anti-money laundering regulations at Binance.
However, Zhao recently noted that he should not be compared to Bankman-Fried, as his legal issues arose from compliance rather than fraud. According to him, comparing him to SBF is like 'comparing someone who is stealing money to someone who is not registered as a company.' As always, CZ candidly stated that he does not care about SBF's failures.
The former Binance CEO appeared a few days after being released from prison at the Coca-Cola Arena in Dubai, welcomed like a rock star with fans lining up to take photos. One fan even shouted, 'The king is back!'
But CZ currently does not hold operational control of Binance under a plea agreement with the U.S. Department of Justice (DOJ). Now, he is a 'passive investor,' content to watch from the sidelines as Binance enters a new era.
CZ and his time in prison: New reflections
During his sentence in a low-security prison in California, CZ underwent many changes. Besides a diet different from his previous Paleo habits, he also connected with fellow inmates, including one who committed bank robbery but was passionate about cryptocurrency. Zhao not only exercised but also spent time helping this inmate connect with free lawyers to reduce his sentence.
Time in prison also gave CZ new reflections on life, and he outlined his next steps. His interests have gradually changed, with a newfound focus on investments in artificial intelligence (AI) and biotechnology, as well as initiating a non-profit educational project called Giggle Academy.
Binance after CZ: A new era
Although no longer running Binance, CZ still holds the position of the largest shareholder of the company and has the right to request information about the exchange's operations. However, he has stated that he does not intend to return to a leadership role, even saying that he feels like 'a father witnessing his child grow up and no longer needing to be closely involved.'
After CZ resigned, Binance made significant changes in its leadership. Richard Teng, former CEO of Abu Dhabi Global Market, has been appointed as the new CEO of Binance.
Binance currently still maintains its position as one of the largest exchanges in the world, and even though CZ is no longer in the leadership team, his actions have left a deep mark in the cryptocurrency industry and his influence in the community remains very strong.
