Changpeng Zhao: The Man Behind Binance
Roots and Early Years
Changpeng Zhao, or “CZ,” rose from humble beginnings to become a prominent figure in the world of cryptocurrency. Born in Jiangsu province, China, Zhao’s life took an international turn when his family moved to Vancouver, British Columbia, Canada, following his father’s exile from China in the late 1980s. Despite facing hardships, Zhao showed resilience from a young age, working in various service sector jobs, including McDonald’s, to support his family.
Academic and Corporate Ventures
Zhao’s journey led him to McGill University in Montreal, where he studied computer science. His career began in stock trading, developing software for the Tokyo Stock Exchange, before moving on to Bloomberg Tradebook, where he significantly contributed to futures trading software. In 2005, he founded Fusion Systems in Shanghai, renowned for creating some of the fastest high-frequency trading systems for brokers.
Entry into Cryptocurrency
Zhao’s foray into cryptocurrency started in 2013, holding key positions in projects like Blockchain.info and serving as the CTO of OKCoin. In 2017, he left OKCoin to start Binance, a successful initial coin offering raised $15 million, and by April 2018, Binance had become the top cryptocurrency exchange globally.
Recognition and Impact
Zhao’s achievements in the crypto sector were recognized by Forbes Magazine in February 2018, ranking him third on their “The Richest People In Cryptocurrency” list. By September 2018, his estimated net worth was around $1.4 billion.
Legal Challenges and Resignation
In a significant turn of events, Zhao stepped down as Binance CEO after pleading guilty to money laundering charges in November 2023. As part of a plea deal, he agreed to pay a $50 million fine, separate from Binance’s $4.3 billion settlement with the DOJ. Prosecutors are seeking an 18-month prison sentence for Zhao.
Zhao’s Departure and Future Plans
Reflecting on his departure, Zhao acknowledged his responsibility for his actions and expressed his intention to remain a passive investor in blockchain and other areas. He confirmed his ongoing involvement with Binance in a consultative capacity and revealed plans to stay as a shareholder, although The New York Times reports that Zhao is barred from active involvement in Binance for three years following the appointment of a monitor.
Leadership Transition
Following Zhao’s resignation, Binance’s former Global Head of Regional Markets, Richard Teng, took over as CEO. Teng, with extensive experience in traditional financial markets, including executive roles at Dhabi Global Market, the Singapore Exchange, and the Monetary Authority of Singapore, expressed his commitment to leading Binance in his new role.
Zhao’s legacy in the cryptocurrency industry remains significant, marked by his technological contributions and the rapid growth of Binance, despite recent legal challenges and his departure from the company’s leadership.
