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Changpeng Zhao

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The native form of this personal name is Zhao Changpeng. This article uses Western name order when mentioning individuals.
Changpeng Zhao
Zhao speaking at the 2022 NFT Summit
Born (1977-02-05) February 5, 1977 (age 47)
Lianyungang, Jiangsu, China[1]
NationalityCanadian, UAE
Other namesCZ
Alma materMcGill University (BSc.)
Occupations
  • Businessman
  • investor
  • software engineer
Known forCo-founder and former CEO of Binance
Spouse
Yang Weiqing
​
(m. 2003)​
PartnerHe Yi (2014–)
Children5
Changpeng Zhao
Traditional Chinese趙長鵬
Simplified Chinese赵长鹏
Transcriptions
Standard Mandarin
Hanyu PinyinZhào Chángpéng

Changpeng Zhao (Chinese: 赵长鹏; pinyin: Zhào Chángpéng), commonly known as CZ, is a Chinese-born Canadian businessman. Zhao is the co-founder and former CEO of Binance, the world's largest cryptocurrency exchange by trading volume as of July 2024.[2] He resigned as the CEO in November 2023 after pleading guilty to a money laundering charge in the United States and was sentenced to four months in prison in April 2024.[3][4] Zhao was released from prison in September.[5]

According to Forbes, Zhao was ranked the 26th-richest person in the world, and richest Canadian overall, with a net worth estimated at $57.3 billion as of July 2024.[6]

Early life and education

[edit]

Zhao was born in Lianyungang in China's Jiangsu province.[1] In the late 1980s, when he was 12 years old, he immigrated with his family to Canada, settling down in Vancouver, British Columbia. His parents were both schoolteachers in China.[7] His father worked as a university instructor before he was branded a "pro-bourgeois intellect" and exiled to rural areas shortly after Zhao's birth.[8] During his teenage years in Canada, Zhao helped to support his family by holding down a number of service jobs, including working as a fast-food clerk at a McDonald's restaurant and a gas station.[9][10]

Zhao attended McGill University in Montreal, Quebec, where he majored in computer science.[9]

Early career

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After graduating from McGill, Zhao was selected for an internship in Tokyo working for a subcontractor of the Tokyo Stock Exchange, developing software for matching trade orders. He later went to work full-time for four years at Bloomberg Tradebook where he was a developer of futures trading software.[9]

Business career

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In 2005, Zhao moved to Shanghai to launch his business career, where he established his first technology startup company called Fusion Systems,[11] which was known for "some of the fastest automated high-frequency trading platforms and systems for stockbrokers."[9] Zhao first heard of Bitcoin in 2013 when playing poker with Bobby Lee (brother of Charlie Lee) who would later go on to found BTCC. Lee advised Zhao to put 10% of his money into bitcoin. Zhao instead "went all in" and sold his apartment in Shanghai and invested all of his wealth in Bitcoin, much to his family's dismay.[10]

In 2013, Zhao was a member of the team that developed Blockchain.info and he also served as Chief Technology Officer of OKCoin.[9]

In 2022, Zhao invested $500 million through Binance to finance the acquisition of Twitter by Elon Musk.[12]

Binance

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After its launch in July 2017, the Binance cryptocurrency exchange was able to raise $15 million in an initial coin offering, and trading began on the exchange eleven days later.[13] In less than eight months, Zhao grew Binance into the world's largest cryptocurrency exchange by trading volume (as of April 2018).[14][13] Zhao also launched Binance Coin in 2017; this is a utility token that gives its owners various benefits, such as discounts on trading fees.[15] In April 2019, Binance launched Binance Smart Chain, which has smart contract functionality and is an Ethereum competitor.

In February 2018, Forbes placed him third on their list of "The Richest People In Cryptocurrency," with an estimated net worth of $1.1-2 billion.[14][16]

In 2019, Zhao launched Binance's U.S. affiliate, Binance.US.[17] Binance withdrew its application to run a Singapore-based crypto exchange in 2021.[18]

[edit]

Civil lawsuits

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On 27 March 2023, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and Zhao in the United States District Court for the Northern District of Illinois, claiming willful evasion of US law and allegedly breaching derivatives rules.[19][20] The agency accused Binance of breaking rules intended to thwart money laundering operations,[21] pointing to internal communications describing transactions by Palestinian militant organization Hamas, and suspected criminals.[19]

In June 2023, the U.S. Securities and Exchange Commission (SEC) sued Zhao and Binance on 13 charges for alleged violations of US securities rules.[22][23][24]

In November 2024, FTX filed a lawsuit against Binance Holdings Ltd., Changpeng Zhao, and other Binance executives, seeking to recover nearly $1.8 billion that FTX alleges was fraudulently transferred. The case centers on a July 2021 stock repurchase transaction in which Binance sold its stakes—approximately 20% of FTX’s international unit and 18.4% of its U.S.-based entity—to FTX co-founder Sam Bankman-Fried.[25]

Criminal conviction

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In November 2023, Zhao agreed to resign from Binance and pay a $50 million fine as part of a guilty plea to U.S. federal charges. Binance also agreed to plead guilty, and to pay $4.3 billion in fines.[3][26] Zhao was replaced as CEO by Richard Teng.[27]

Zhao pled guilty to violating the American Bank Secrecy Act by prioritizing Binance's growth over compliance with the Financial Crimes Enforcement Network's anti-money laundering requirements.[28] Although Zhao only personally pled guilty to a single criminal charge, as part of plea bargain negotiations, Zhao agreed for Binance to also admit to operating an unlicensed money transmitting business and to violating the International Emergency Economic Powers Act.[3]

In April 2024, Zhao was sentenced to four months in prison after pleading guilty to charges of money laundering.[4][29] Because Zhao is not a U.S. citizen, he is ineligible to serve his sentence in a minimum security prison.[30] Prosecutors had sought three years of detention.[31]

Zhao's defense attorneys noted that BitMEX founder Arthur Hayes only received probation for a similar crime and argued that Zhao's ineligibility for minimum-security imprisonment put his safety at risk.[31][32]

According to records with the United States Federal Bureau of Prisons (BOP), as of August 22, 2024, Zhao was listed as an inmate of the Residential Reentry Management (RRM) Long Beach field office, which helps place federal offenders.[33]

Views on cryptocurrency

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In an interview with The New York Times, Zhao said people are getting into crypto as they see it grow, "trade it and make money off it as opposed to using it," but that the market will always self-correct.[34] On April 6, 2021, Zhao told Bloomberg Markets that nearly 100% of his liquid net worth was in the form of cryptocurrency.[35]

Satoshi Nakamoto candidate

[edit]

In 2023, speculations arose that Zhao could be Satoshi Nakamoto, the creator of Bitcoin.[36]

Personal life

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Zhao is a Canadian and UAE citizen.[37][38] Born in China in 1977, Zhao acquired a Canadian visa in 1989 and left China that same year after the events of Tiananmen Square.[39] In 2022, Zhao said that he had acquired Canadian citizenship some 30 years before, around 1992.[40] In 2005, he moved back to China,[37] eventually owning an apartment in Shanghai.[41] In 2015, he sold his Shanghai apartment and used the funds to purchase Bitcoin.[42] Zhao stayed in China until the Chinese government banned crypto exchanges in late 2017.[39] He is currently based in Dubai, United Arab Emirates.[18]

Zhao met his wife Yang Weiqing in 1999 and they married in 2003.[43] They have two children.[43][44] Although still married to Yang,[citation needed] Zhao has been in a "life partner" relationship with his business partner and fellow Binance co-founder, He Yi, since they met in 2014.[43][better source needed] They have three children together.[45]

Political views

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With regards to his political beliefs, Zhao stated in 2021 in Singapore: "I am not a complete libertarian, I'm not an anarchist... I don't believe human civilization is advanced enough to live in a world with no rules."[10]

Philanthropy

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Zhao has said he plans to donate up to 99% of his wealth, following the philanthropic examples of other global business magnates and investors such as Bill Gates and Warren Buffett. "I intend to donate most of my wealth, as many other entrepreneurs or founders have done, from Peabody to today. I intend to donate 90%, 95%, or 99% of my wealth."[46]

References

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  1. ^ a b Gottsegen, Will (2023-06-03). "Crypto's Richest Man Is Waiting Out the Chaos". Rolling Stone. Archived from the original on 2023-12-02. Retrieved 2023-10-05.
  2. ^ Sigalos, MacKenzie; Browne, Ryan (November 22, 2023). "Binance users pull more than $1 billion from the exchange after CEO leaves, pleads guilty". CNBC. Archived from the original on December 5, 2023. Retrieved December 5, 2023.
  3. ^ a b c Michaels, Dave; Kowsmann, Patricia; Salama, Vivian (21 November 2023). "WSJ News Exclusive | Binance Founder Changpeng Zhao Agrees to Step Down, Plead Guilty". WSJ. Archived from the original on 22 November 2023. Retrieved 21 November 2023.
  4. ^ a b Browne, MacKenzie Sigalos, Ryan (2024-04-30). "Binance founder Changpeng Zhao sentenced to 4 months in prison after plea deal". CNBC. Archived from the original on 2024-04-30. Retrieved 2024-04-30.{{cite web}}: CS1 maint: multiple names: authors list (link)
  5. ^ Zeff, Maxwell (September 27, 2024). "Binance founder 'CZ' released from custody after four-month sentence". techcrunch.com.
  6. ^ "Bloomberg Billionaires Index". www.bloomberg.com. Retrieved 2024-05-23.
  7. ^ "Who is Changpeng Zhao (CZ), the Founder of Binance?". en.coinotag.com. 21 September 2023. Archived from the original on 13 October 2023. Retrieved 21 September 2023.
  8. ^ "赵长鹏与币安的崛起". 知乎专栏 (in Chinese). Archived from the original on 2023-06-18. Retrieved 2021-11-09.
  9. ^ a b c d e Ambler, Pamela (February 28, 2018). "From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance". Forbes. Archived from the original on 2020-09-25. Retrieved 2018-03-08.
  10. ^ a b c Gura, David (August 13, 2023). "The future of crypto hinges on a fight between the SEC and a former burger flipper". NPR. Archived from the original on 2023-08-13. Retrieved 2023-08-13.
  11. ^ Russell, Jon (2018-05-04). "Catch Binance CEO Changpeng Zhao at TechCrunch's blockchain event on July 6". TechCrunch. Archived from the original on 2021-02-26. Retrieved 2018-05-04.
  12. ^ "Crypto CEO says Elon Musk has no plan for Twitter, and reveals why he wrote him a $500 million 'blank check'". Business Insider. Archived from the original on 2022-05-06. Retrieved 2022-05-06.
  13. ^ a b Lee, Justina; Nakamura, Yuji; Robertson, Benjamin (2018-03-28). "How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months". Bloomberg. Retrieved 2018-05-04.
  14. ^ a b Cao, Sissi (2018-04-03). "Despite Bitcoin Bubble Popping, Crypto Exchanges Are Making Billionaires Richer". Observer. Archived from the original on 2020-09-25. Retrieved 2018-04-24.
  15. ^ "Fee Structure on Binance". Binance.com. Archived from the original on 12 September 2022. Retrieved 12 September 2022.
  16. ^ Ambler, Pamela; Au-Yeung, Angel; Chung, Grace; Kauflin, Jeff; Konrad, Alex; Shin, Laura; Vardi, Nathan (February 6, 2018). "The Richest People In Cryptocurrency". Forbes. Archived from the original on 2018-02-26. Retrieved 2018-03-08.
  17. ^ "Our US Partner, Binance.US, Opens for Registration and Deposits | Binance". www.binance.com. Archived from the original on 2022-07-11. Retrieved 2022-07-11.
  18. ^ a b "Profile – Changpeng Zhao". Forbes. Archived from the original on 2022-11-26. Retrieved 2023-04-12.
  19. ^ a b "Binance and Its CEO Sued by CFTC Over US Regulatory Violations". Bloomberg News. 27 March 2023. Archived from the original on 17 November 2023. Retrieved 27 March 2023.(subscription required)
  20. ^ Milmo, Dan (27 March 2023). "US regulator sues crypto exchange Binance and boss Changpeng Zhao". The Guardian. Archived from the original on 23 November 2023. Retrieved 27 March 2023.
  21. ^ "Binance accused of breaking US financial laws". BBC News. 27 March 2023. Archived from the original on 1 November 2023. Retrieved 28 March 2023.
  22. ^ "SEC Sues Binance and CEO Zhao for Breaking US Securities Rules". Bloomberg News. 5 June 2023. Archived from the original on 5 June 2023. Retrieved 5 June 2023.(subscription required)
  23. ^ Goldstein, Matthew; Flitter, Emily; Yaffe-Bellany, David (5 June 2023). "S.E.C. Accuses Binance of Mishandling Funds and Lying to Regulators". The New York Times. Archived from the original on 5 June 2023. Retrieved 5 June 2023.
  24. ^ Michaels, Dave; Ostroff, Caitlin; Kowsmann, Patricia (5 June 2023). "SEC Sues Crypto Exchange Binance". Wall Street Journal. Archived from the original on 5 June 2023. Retrieved 5 June 2023 – via MSN News.
  25. ^ "Bloomberg - Are you a robot?". www.bloomberg.com. Retrieved 2024-11-11. {{cite web}}: Cite uses generic title (help)
  26. ^ Helmore, Edward (November 21, 2023). "Crypto giant Binance admits to money laundering and agrees to pay $4.3bn". The Guardian. Archived from the original on November 21, 2023. Retrieved November 21, 2023.
  27. ^ Clayton, James (2023-11-21). "Binance chief Changpeng Zhao pleads guilty to money laundering charges". BBC. Archived from the original on 2023-11-21. Retrieved 2023-11-21.
  28. ^ Kim, Crystal (November 23, 2023). "Binance CEO "CZ" steps down, pleads guilty to U.S. money laundering violations". Axios. Archived from the original on November 28, 2023. Retrieved November 26, 2023.
  29. ^ "Binance Founder Changpeng Zhao Gets Four Months in Prison". Bloomberg.com. 2024-04-30. Archived from the original on 2024-04-30. Retrieved 2024-05-01.
  30. ^ Johnson, Gene (April 30, 2024). "Binance founder Changpeng Zhao sentenced to 4 months for allowing money laundering". Associated Press. Archived from the original on May 14, 2024. Retrieved May 18, 2024.
  31. ^ a b "Binance crypto founder Zhao sentenced to four months in prison". Reuters. 2024-04-30. Archived from the original on 2024-04-30. Retrieved 2024-05-01.
  32. ^ Gene, Johnson (May 1, 2024). "Binance founder Changpeng Zhao sentenced to 4 months for allowing money laundering". Washington Post. Associated Press. Archived from the original on May 4, 2024. Retrieved May 1, 2024.
  33. ^ Wright, Turner (2024-08-22). "Changpeng Zhao moved to custody of field office ahead of Sept release". cointelegraph. Archived from the original on 2024-08-23. Retrieved 2024-08-22.
  34. ^ Lipton, Eric; Livni, Ephrat (2021-07-23). "'I Feel Conflicted': Crypto's Offshore Trading Moguls Talk Shop". The New York Times. Archived from the original on 2021-11-25. Retrieved 2021-11-28.
  35. ^ Kharif, Olga (6 April 2021). "Binance CEO Goes All-in on Tokens: 'I Just Want to Keep Crypto'". Bloomberg Markets. Archived from the original on 29 June 2021. Retrieved 1 September 2021.
  36. ^ "Unveiling Satoshi Nakamoto: Is CZ, Former Binance CEO, the Mastermind Behind Bitcoin?". Retrieved 23 November 2024.
  37. ^ a b "How China's crypto king went from McDonald's to billionaire". South China Morning Post. 2022-10-29. Archived from the original on 2022-11-30. Retrieved 2022-11-30.
  38. ^ Raymond, Nate (2023-11-24). "Ex-Binance CEO Zhao urges judge to allow him to leave US before sentencing". Reuters. Archived from the original on 2023-11-26. Retrieved 2023-11-26.
  39. ^ a b "Who Is Changpeng Zhao? – Forbes Advisor". www.forbes.com. Archived from the original on 2023-01-09. Retrieved 2023-01-09.
  40. ^ "'Binance isn't a Chinese firm. Have to repeat it cause I look Chinese': CEO Changpeng Zhao". Moneycontrol. 24 November 2022. Archived from the original on 2022-11-30. Retrieved 2022-11-30.
  41. ^ Gomes, Ezequiel (2021-06-04). "CZ, CEO of Binance, sold his house and bought Bitcoin in 2014". Criptoeconomia. Archived from the original on 2022-11-30. Retrieved 2022-11-30.
  42. ^ Zhao, Changpeng. "I wish I could tell you my lame story from 2015, when the btc price "crashed" to below $200, and I just sold my house and bought in at $600 a few months earlier..." Twitter. Twitter.com. Archived from the original on 26 November 2022. Retrieved 12 September 2022.
  43. ^ a b c "Archived copy" (PDF). Archived (PDF) from the original on 2024-04-24. Retrieved 2024-05-01.{{cite web}}: CS1 maint: archived copy as title (link)
  44. ^ "Seaver College Announces Fall 2023 Dean's List". Archived from the original on 2024-05-01. Retrieved 2024-05-01.
  45. ^ Sor, Jennifer (2024-04-30). "Binance's former CEO could be the richest US prison inmate ever if sentenced with his $43 billion fortune". Business Insider. Archived from the original on 2024-05-01. Retrieved 2024-05-01.
  46. ^ Shoes, Eloisa (2021-11-17). "Bilionário da Binance vai doar quase todo seu dinheiro". Investidores Brasil - Juntos Podemos Mais (in Brazilian Portuguese). Archived from the original on 2021-11-21. Retrieved 2021-11-21.
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