Who Is Changpeng Zhao? A Short Biography
Changpeng Zhao (CZ) is the founder and former CEO of Binance, the largest crypto exchange by trading volume.
Early Life and Education
Zhao was born in China but moved to Canada at age 12, attending McGill University in Montreal.
As a teenager in Vancouver, he was flipping burgers at McDonald’s and working overnight shifts at a gas station to support his family with household expenses.
He then returned to China to start his entrepreneurial endeavors, founding his first company, Fusion Systems, a high-frequency trading platform.
Creation of Binance
Zhao first learned about Bitcoin during a poker game. In 2013, he invested all of his money in it, even selling his apartment.
After working for other crypto exchanges and wallets, he founded Binance in 2017, raising $15 million in its Initial Coin Offering (ICO). Binance quickly grew to be the most popular crypto exchange and still holds the position.
The success of Binance made Zhao, dubbed “CZ”, one of the wealthiest players in crypto and later in the world. His net worth peaked at $80 billion thanks to his 90% ownership in Binance. It later fell to $33 billion after high-profile legal troubles.
Binance Investigation
Binance was the target of a multi-year investigation by the US Department of Justice for violating the Bank Secrecy Act. The company failed to implement anti-money laundering policies and profited from the US economy without complying with US laws.
According to The Treasury Department, a key player in the investigation estimated that Binance enabled over 100,000 transactions linked to criminal activity.
Stepping Down as CEO
CZ stepped down as CEO of Binance in November 2023 after pleading guilty to federal criminal charges. Binance settled for $4.3 billion with the Department of Justice, and Zhao was personally fined $50 million and sentenced to 4 months in prison.
Binance was banned from operating in the US, but Binance.US is still the legal entity in the US that has an operating license and will continue their operations there.
Notably, Yi He, CZ’s Binance co-founder, and mother to three of his children, hasn’t faced any charges and appears to still be involved with the company.
CZ previously stated he planned to donate up to 99% of his wealth, but what lies ahead after his release from prison remains to be seen.
One of CZs last tweets before prison:
