TLDR
- Changpeng Zhao claims the U.S. Department of Justice pursued his case aggressively as part of a broader effort to restrict cryptocurrency growth.
- Zhao argues that the prosecution was not focused on his legal offenses but on sending a message to the crypto industry.
- The Binance founder emphasizes that major global banks with similar compliance failures only faced fines, not jail time.
- Zhao admits to mistakes made during Binance’s early years but insists that the government aimed to see him behind bars.
- In a breakdown of his relationship with Sam Bankman-Fried, Zhao clarifies that he never intended to destroy FTX with his November 2022 tweet.
Changpeng Zhao, the founder of Binance, has opened up about the U.S. Department of Justice’s aggressive pursuit of his prosecution. During an interview on the All-In Podcast, Zhao stated that his legal battle went beyond personal accusations. He believes that the U.S. government was attempting to stifle the growth of the cryptocurrency industry, especially under the Biden administration.
CZ Claims the DOJ’s Approach Was “Uniquely Aggressive”
Changpeng Zhao referred to the Department of Justice’s pursuit of his case as “highly aggressive,” emphasizing that his prosecution was unlike that of others in the financial sector. Zhao explained that major global banks with similar issues around anti-money laundering (AML) compliance had only faced fines. In contrast, he was the subject of a highly publicized legal process. “Before me, nobody got put in jail,” Zhao said during the podcast. This statement underscored his belief that the government aimed to send a strong message to the cryptocurrency sector.
Zhao’s prosecution came after Binance agreed to pay a historic $4.3 billion settlement in November 2023. The settlement followed charges of failing to maintain an effective AML program. Despite pleading guilty to the charges, Zhao’s plea deal did not end his influence at Binance. He stepped down as CEO, but he remains the majority shareholder and continues as a passive advisor to the exchange.
Changpeng Zhao Reflects on the FTX Relationship
The relationship between Changpeng Zhao and Sam Bankman-Fried, the founder of FTX, played a role in the events that led to FTX’s collapse. Zhao described how Binance initially invested in FTX in 2019, but their relationship soured over time. According to Zhao, Bankman-Fried’s efforts to poach Binance’s employees and high-profile clients were key factors in the rift.
Zhao also cited Bankman-Fried’s political lobbying in Washington D.C., which aimed to impose regulations that would harm Binance’s position in the U.S. However, Zhao made it clear that his decision to sell Binance’s remaining FTT tokens in November 2022 was not an orchestrated attack on FTX. Instead, it was a reaction to the lack of liquidity at FTX. Zhao claimed he had no prior knowledge of Bankman-Fried’s alleged misuse of customer funds.
Binance Under New Leadership After CZ’s Legal Settlement
Following the legal settlement, Changpeng Zhao’s role in Binance has changed. As part of his plea agreement, he is no longer involved in the day-to-day operations of the exchange. Richard Teng, the new CEO, now leads Binance. Despite this, Zhao continues to hold the majority of the company’s shares and offers strategic advice.
Since the change in leadership, Binance has seen improvements in its operations and remains one of the leading cryptocurrency exchanges globally. While Zhao may not be managing the company directly, he is confident about Binance’s future.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
