Changpeng Zhao, better known as CZ, the man who built Binance from the ground up, doesn’t want his name anywhere near Sam Bankman-Fried’s.

In his own words, comparing him to SBF, the convicted founder of FTX, is like “comparing somebody who’s stealing money versus somebody who failed to register a company.” 

CZ, blunt as always, says he’s got no interest in SBF’s brand of downfall. At the Coca-Cola Arena in Dubai, he made a high-profile appearance a few days after his release from prison, greeted like a rockstar with fans lining up for selfies, one fan shouting, “he’s a martyr,” and another declaring, “the king is back!”

But CZ isn’t picking up the reins at Binance, a move that’s part of a plea deal with the U.S. Department of Justice. Now he’s a “passive investor,” content to watch from the sidelines while Binance moves into a new era.

Binance under DOJ scrutiny and CZ’s plea deal

CZ’s exit from Binance didn’t come easy. After years of building Binance into a global crypto powerhouse, he was forced out due to legal trouble with the U.S. government. Earlier this year, CZ pled guilty to failing to implement an adequate anti-money laundering (AML) program at Binance, leading to the four-month stint at a minimum-security prison in California.

The U.S. government slapped a $4.3 billion fine on Binance, demanding accountability from one of the most prominent crypto leaders. It was a clear message: play by the rules, or face the consequences.

CZ’s time in prison made him the wealthiest U.S. inmate in history. Prosecutors originally pushed for a three-year sentence, hoping to set an example, but CZ’s cooperation earned him a shorter term. Though his days in lockup were no luxury retreat.

CZ kept a low profile, armed with advice from a prison consultant to stick to a modest commissary budget and keep his head down. He filled his time with workouts, writing a book, and connecting with fellow inmates interested in crypto.

Some inmates soon recognized CZ as the “big Bitcoin guy” and started asking him for investment advice. “Many of them asked, like, which coins should they buy?” he said, laughing. Guards even wanted tips, but CZ claimed he was out of the loop. He had no access to market updates and was as blind to crypto trends as anyone else inside.

One particular inmate, a bank robber serving 25 years, stood out as a crypto enthusiast and became CZ’s workout buddy. Together, they spent 90 minutes a day in the open-air gym, pushing through a routine that helped CZ stay grounded.

Since his release, CZ’s been working to connect this inmate with pro-bono lawyers to reduce his sentence, using his influence for a cause he says he believes in.

Binance moves on without CZ

Meanwhile, Binance had to adjust. With CZ stepping down, the DOJ wanted a clean break between him and Binance, leading to the appointment of Richard Teng, a former Abu Dhabi regulator, as the new CEO.

But CZ still casts a big shadow. As the largest shareholder, he’s not entirely out of the picture, though he claims Binance’s leadership consults him “very rarely.” He’s still a co-defendant in ongoing civil cases, including one filed by the Securities and Exchange Commission.

Binance’s co-founder, Yi He, with whom CZ has children, is still deeply involved, ensuring some continuity despite CZ’s absence. And she has been doing a remarkable job so far.

Even before his legal troubles, CZ made major moves, like investing $500 million in Elon Musk’s Twitter takeover, now called X. That hasn’t aged well though, from a financial perspective, as Twitter’s valuation plummeted after Musk’s chaotic revamp.

But CZ’s unbothered, saying that, “We’re very long-term investors.” Musk’s Twitter, in line with his political leanings, became a significant platform for Trump’s reelection efforts.

Trump’s win, widely seen as positive for crypto due to his skepticism of regulation, coincidentally gave CZ’s net worth a $12.1 billion boost, taking it to nearly $53 billion, according to Bloomberg.

While CZ declined to weigh in on Trump’s victory, he did comment on Musk’s overhaul of Twitter, now X. “I think after Elon took over, things have moved a lot faster,” he said. “There’s new features, change happens at a much faster pace.”

The crypto community, like CZ, is keeping an eye on how Musk’s platform could change under Trump 2.0, especially with the promise of more crypto-friendly policies.

A different life behind bars

Before he made his triumphant return to Dubai, CZ spent his sentence at Lompoc II, a low-security prison in California’s Santa Barbara County, notorious for its bland meals and strict racial segregation, a system meant to minimize violence. It was a far cry from his usual lifestyle.

CZ, known for his paleo diet of proteins and vegetables, had to settle for a high-starch, low-protein diet heavy on Spam-like meat and occasionally fried fish. “I usually stick to a paleo diet, just proteins and veggies. That’s not possible there,” CZ said, underscoring the stark contrast to his previous life.

His cellmate, the bank robber-turned-crypto lover, was just one of many connections CZ made in prison. With the monotony of prison life setting in, CZ found purpose in helping his friend fight for a reduced sentence. His experience behind bars seems to have given him a new perspective on the world, especially as he plots his next moves.

His interests are changing too. He’s eyeing investments in artificial intelligence and biotechnology, as well as launching Giggle Academy, a nonprofit educational app aimed at making learning accessible.

While he says his “emotional attachment” to Binance remains, he’s clear that his direct involvement has come to an end. “It’s like a kid, right?” he says of Binance. “Once it grows up, it doesn’t need to be attached to me.”

As he steps back, Binance is still one of the largest crypto exchanges globally, but Teng and the leadership team now bear the weight of the company’s direction.

CZ’s image in the crypto community is unlikely to vanish, even if he’s no longer on the front lines. He’s left a mark, built a legacy, and whether from behind bars or from a distance, CZ’s influence on crypto is undeniable.

Coinspeaker FTX Co-Founder Gary Wang Seeks No Jail Time for Cooperation in SBF Case

Gary Wang, the co-founder and former Chief Technology Officer of the defunct cryptocurrency exchange FTX, is appealing for leniency as his sentencing approaches. In a detailed memo filed on November 6 in Manhattan district court, Wang’s legal team argued that his significant cooperation with authorities was critical in securing the conviction of Sam Bankman-Fried (SBF), the face of FTX’s notorious collapse.

Wang, who pleaded guilty to charges of fraud and conspiracy in December 2022, said his testimony was pivotal to the government’s case against Bankman-Fried. According to the filing, his disclosures helped put the disgraced FTX founder behind bars.

Wang Appeals for No Jail Time to Avoid Disparity

Recall that SBF was sentenced to 25 years in prison in March 2024 for fraud in one of the most watched financial trials in recent years. His conviction centered on allegations that he had orchestrated a scheme to misappropriate billions in customer funds to cover risky bets made by Alameda Research, FTX’s affiliated trading arm.

In the memo, Wang argued that his cooperation with the United States Department of Justice (DOJ) provided essential evidence, revealing how Bankman-Fried directed code changes that allowed Alameda Research to siphon customer funds, an estimated $10 billion over several years, before the platform’s collapse in November 2022.

As a result, he is asking the government to spare him and consider his cooperation as time served. He also emphasized that his role in the fraud was more limited than that of other high-ranking FTX figures, such as Caroline Ellison, former CEO of Alameda, and Nishad Singh, FTX’s former engineering director.

Both Ellison and Singh reached plea deals with the government. Still, they received differing sentences: Ellison was sentenced to two years in prison for her role in the FTX-Alameda fiasco, while Singh was only served time.

Wang’s defense argued that a jail sentence for him would create an unfair disparity, particularly considering Singh’s lighter penalty despite a comparable level of involvement.

The lawyers further highlighted that his proactive and early cooperation with prosecutors, aiding FTX’s bankruptcy estate, and contributing to class-action lawsuits show he is committed to justice and to assisting victims.

Wang Could Miss Raising First Child if Sentenced

The sentencing memo also cited Wang’s personal circumstances as part of his reasons for requesting no jail time. His legal team revealed that Wang is currently employed as a software engineer at an undisclosed firm and is expecting his first child with his wife later this month.

His defense noted that a custodial sentence would disrupt his ability to support his family financially and continue contributing to anti-fraud initiatives. According to the filing, Wang has been involved in developing software tools for government use designed to identify fraudulent activity in crypto markets.

“Gary wants nothing more than to be a good husband and father and continue his work with the Government and other stakeholders to facilitate FTX victims’ recovery and mitigate the risk of future frauds,” reads the memo.

Judge Lewis Kaplan, who presided over Bankman-Fried’s trial, is set to decide Wang’s fate on November 20. The outcome of Wang’s sentencing could set a significant precedent in how individuals who cooperate extensively with authorities are treated in high-profile financial crime cases.

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FTX Co-Founder Gary Wang Seeks No Jail Time for Cooperation in SBF Case

FTX co-founder requests to avoid his prison sentence in the fraud case involving SBF.

Wang’s lawyer highlights the defendant’s minimal role in the fraud scheme compared to others.

The lawyer argues that Wang was instructed by Bankman-Fried to alter FTX’s code.

In a novel development in the FTX lawsuit, Gary Wang, the co-founder of the defunct exchange, has requested the court to avoid his prison sentence. Being a key witness for FTX founder Sam Bankman-Fried’s fraud trial, Wang pleaded for a non-custodial sentence. In a sentencing memo filed in a Manhattan district court on November 6, his lawyer, Ilan Graff, highlighted his “most limited role” in the $10 billion FTX case.

In November 2022, the then-prominent FTX exchange fell, severely impacting the entire crypto industry. After one year, its founder, SBF, was found guilty of seven charges, including fraud and conspiracy. Soon, ex-FTX executive Nishad Singh and FTX’s sister firm Alameda Research’s former CEO Caroline Ellison were convicted of being involved in the fraud scheme. Meanwhile, Wang reached a plea agreement with prosecutors on charges of fraud and criminal conspiracy and is scheduled for prison sentence on November 20.

Wang’s lawyer urged the court to consider his request for the defendant’s non-custodial sentence. Graff pointed out that Wang’s role in the scheme was minimal compared to the other crime partners. He argued that Bankman-Fried forced him to modify FTX’s code to help allow Alameda Research to accumulate the exchange’s customer funds.

Further, the lawyer asserted that Wang was unaware of the conspiration and the execution of the scheme. He stated, “Gary was unaware of the scheme when it started, never informed of its particulars, and unlike Bankman-Fried, Ellison, and Singh, never once took an affirmative step to deceive anyone.” He added that it would “create an unwarranted sentencing disparity” if Wang is sentenced to jail time while Singh was freed of additional imprisonment. The lawyer also included statements regarding the potential hardships of Wang’s 9-month pregnant wife if he is imprisoned.

However, the defendant’s fate remains unclear as the court’s decision is unpredictable. The judge may opt for a stringent sentence, similar to those of Bankman-Fried and Ellison, or show leniency, as seen in Singh’s sentencing.

The post FTX Co-Founder Gary Wang Seeks No Prison Time appeared first on CryptoTale.

The post Pro-XRP Lawyer Exposes Gensler’s Double Standards: Meeting FTX’s SBF While Shunning Ripple’s Leadership appeared first on Coinpedia Fintech News

John Deaton, Managing Partner at Deaton Law Firm and a candidate for the Massachusetts Senate, recently shared his thoughts on SEC Chair Gary Gensler’s comments about cryptocurrency regulation. In a previous interview, Gensler had stated that enforcement actions against crypto leaders, including Sam Bankman-Fried, are necessary to build trust in the sector and protect investors.

In an interview with David Lin, Deaton disagreed with Gensler’s approach. He pointed out that prominent figures like Mark Cuban and Anthony Scaramucci have criticized Gensler, calling him a “bad actor” and a “bad-faith regulator.” Deaton said that Gensler has avoided meetings with key industry leaders while having secret discussions with Bankman-Fried, which raises questions about his transparency.

“This is a guy who refused to meet with Brian Armstrong or Brad Garlinghouse or Jesse Powell while he was secretly meeting with SPF several times, and he’s never been questioned. He hasn’t released the notes of that. I’m someone who’s been arguing for smart, tailored regulations of crypto. I am not an anti-regulation guy when it comes to crypto. I think regulation and regulatory clarity are what have held Bitcoin and crypto back,” he said.

Deaton’s Desire for ‘Crypto Reset’

While Deaton is not against regulation, he advocates for more sensible and modern rules for the crypto space. He believes that outdated laws from the 1930s are being applied to today’s technology, such as blockchain and artificial intelligence, creating confusion and driving people to seek opportunities in less regulated environments.

Deaton expressed hope for change, mentioning that both Vice President Kamala Harris and Donald Trump have signaled a desire for a “crypto reset” in the U.S. He supports the idea of adopting new technologies rather than banning them.

BlockBeats News, on November 2, The Block reported that according to a new federal court document, the U.S. government is negotiating with multiple political action committees (PACs) to recover up to $13.25 million donated by former FTX executives Political donations. The government requested an extension until January 15 to continue discussions with the PAC on the forfeiture of the funds. Most of these PACs are affiliated with the Democratic Party or support liberal causes.

According to OpenSecrets data, these groups received approximately $13.25 million in donations from FTX’s SBF or former engineering director Nishad Singh. Among them, Singh has been sentenced to three years of supervised release for testifying against SBF. Several politicians and PACs have returned SBF donations.

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<p>The post The U.S. government is trying to recover $13.25 million in political donations from a former FTX executive first appeared on CoinBuzzFeed.</p>

BlockBeats News, on November 2, The Block reported that according to a new federal court document, the U.S. government is negotiating with multiple political action committees (PACs) to recover up to $13.25 million donated by former FTX executives Political donations. The government requested an extension until January 15 to continue discussions with the PAC on the forfeiture of the funds. Most of these PACs are affiliated with the Democratic Party or support liberal causes.

According to OpenSecrets data, these groups received approximately $13.25 million in donations from FTX’s SBF or former engineering director Nishad Singh. Among them, Singh has been sentenced to three years of supervised release for testifying against SBF. Several politicians and PACs have returned SBF donations.

Source link

<p>The post The U.S. government is trying to recover $13.25 million in political donations from a former FTX executive first appeared on CoinBuzzFeed.</p>

BlockBeats News, on November 2, The Block reported that according to a new federal court document, the U.S. government is negotiating with multiple political action committees (PACs) to recover up to $13.25 million donated by former FTX executives Political donations. The government requested an extension until January 15 to continue discussions with the PAC on the forfeiture of the funds. Most of these PACs are affiliated with the Democratic Party or support liberal causes.

According to OpenSecrets data, these groups received approximately $13.25 million in donations from FTX’s SBF or former engineering director Nishad Singh. Among them, Singh has been sentenced to three years of supervised release for testifying against SBF. Several politicians and PACs have returned SBF donations.

Source link

<p>The post The U.S. government is trying to recover $13.25 million in political donations from a former FTX executive first appeared on CoinBuzzFeed.</p>

Before crypto exchange FTX and its founder Sam Bankman-Fried (SBF) got tied down around allegations of misappropriation of users’ funds, SBF was among the most influential crypto entrepreneurs. Long before FTX collapsed, an allegedly leaked email exchange with a top regulator shows SBF’s intent to get the exchange federally regulated.
On May 28, 2022, nearly six months before FTX filed for bankruptcy and SBF resigned as the CEO, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg received an invitation to meet SBF on June 13, 2022, Washington Examiner reported. The email was mediated by former CFTC Commissioner Mark Wetjen, who joined FTX US as the Head of Policy and Regulatory Strategy in Nov. 2021.
Sam Bankman-Fried's meeting invitation to FDIC Chairman Martin Gruenberg. Source: Washington Examiner
In the latter half of the email, Wetjen told Gruenberg that FTX is in the “unusual position of begging the federal government to regulate us.” He further added:
“We have an application before the CFTC that lays out for the agency how to do so. All the CFTC has to do is approve it. Once the CFTC does, the others will follow — the other major US exchanges also have CFTC licenses.”
In response to the SBF’s request, Gruenberg agreed to meet the duo, as shown in the leaked email below.
FDIC chairman Martin Gruenberg accepts Sam Bankman-Fried's meeting invitation . Source: Washington Examiner
Following the collapse of FTX, SBF’s political ties were uncovered amid parallel investigations. An FDIC spokesperson confirmed that the FDIC chairman met SBF as part of “routine courtesy visits with leaders of financial firms and institutions.”
Related: Sam Bankman-Fried to propose revised bail package ‘by next week’
Alongside federal investigations, FTX’s new management started conducting internal investigations to track down missing funds.

Sharing the FTX Debtors’ press release just issued: https://t.co/r7PlneGSXF— FTX (@FTX_Official) March 16, 2023
Recent court documents revealed that SBF and five other former executives of FTX and Alameda Research received $3.2 billion in payments and loans from FTX-linked entities. SBF reportedly received the lion’s share of the funds at $2.2 billion out of the lot.