Changpeng Zhao (趙長鵬), the billionaire founder of Binance Holdings Ltd (幣安), which operates a cryptocurrency exchange, arrived at the Coca-Cola Arena in Dubai to rapturous applause and a long line of fans eager for a selfie with him. Deep in the pulsating crowd, a man yelled: “He is a martyr,” while in another part of the room a promoter of a start-up boldly declared: “The king is back.”
Back, that is, from a US prison halfway around the world. Yet the crypto billionaire known as CZ is not back at the helm of the largest crypto exchange, as his plea deal with the US Department of Justice forbids him from leading the company. He said he is OK with that.
Following his appearance in Dubai, Zhao spoke with Bloomberg a day before former US president-elect Donald Trump’s victory in the US presidential election sent crypto prices soaring and CZ’s estimated net worth to almost US$53 billion. He reflected on his forced separation from Binance and four months of incarceration during which he passed the time by working out, writing a book and talking crypto with fellow inmates.
Photo: Reuters
“I don’t think I want to go back” to being Binance’s chief executive officer, Zhao said in the interview, his first comments to the press since his release. “I’ve been leading the company for seven years. I enjoyed it. It’s a lot of work, but I think that chapter is that chapter.”
Zhao said he has even received offers to sell his controlling stake in the exchange — equity that makes up the bulk of his net worth — yet he would not disclose from whom or for how much.
“I’m not saying that I’m going to hold onto the equity forever or not,” he said. “I’m happy to review every offer, but so far I haven’t done anything. But, you know, I’m just a regular shareholder at this point.”
Still, the feverish reception to Zhao’s re-entry into crypto society at Binance’s razzle-dazzle event was indicative of how intertwined the exchange and its founder are, despite attempts to create distance and satisfy deals with the US Department of Justice. When Binance agreed to pay US$4.3 billion for contravening US sanctions and allowing Americans to trade on an unlicensed exchange, Zhao’s resignation as CEO was a key part of the fine print.
Now a self-described passive investor in crypto, Zhao, who has the Binance logo tattooed on his arm, claims his “felon status” has not deterred people from doing business with him.
Before the justice department deal was carved out and Zhao was still CEO, Binance invested US$500 million in Elon Musk’s takeover of Twitter, now X. Since then, the value of the social media platform has taken a beating. At the same time, Musk became one of Trump’s top donors, using the platform to champion the presidential candidate and welcoming back right-wing influencers previously banned for breaking hate-speech rules.
Now that the crypto-supporter Trump has won a second term in the White House, the prospects for the industry are much brighter than they have been under US President Joe Biden’s administration, which embarked on a massive regulatory crackdown on digital-asset companies including Binance.
Trump’s victory pushed Zhao’s estimated net worth up by US$12.1 billion in a single day, the Bloomberg Billionaires Index showed.
Just a month before his return to the crypto conference circuit, Zhao had been sharing a cell at the US Federal Correctional Institution Lompoc II, a minimum-security prison in California’s Santa Barbara County, after cutting a deal with US authorities to end an investigation that had hung over him and the company he built for years. He pleaded guilty to failing to implement an adequate anti-money laundering program at Binance, a crime that allowed groups from Hamas to al-Qaeda and other bad actors to trade on the platform.
He was sentenced to prison in April, becoming the richest-ever US inmate and the first executive to do time for a US Bank Secrecy Act contravention — an offense usually seen as a reporting infraction that, in his case, was amplified by unusually egregious facts. Federal prosecutors had sought a three-year sentence, seeking to make an example of a leader in an industry that has had more than its fair share of scams and scandals.
Armed with advice from a prison consultant to keep a low profile and no more than US$50 in his commissary account, CZ checked in to what is known as “Lowpoc low,” a facility with an adjacent camp that is often home to white-collar defendants and once housed Richard Nixon’s chief of staff after the Watergate scandal.
Strip-searched and placed in a group designated by race — segregation that Zhao said helped provide protection from violence and extortion — his days were a mix of pushups, book-writing and awful prison food: heavy on starch and sugars, low on protein save for what he described as Spam-like meat and some occasional fried fish.
“I usually stick to a paleo diet, just proteins and veggies. That’s not possible there,” said Zhao, whose frugality is well known among friends and family.
Not many of the inmates recognized Zhao at first, although word eventually spread that he was a “big Bitcoin guy” and “not poor,” he said.
“Many of them asked, like, which coins should they buy?” he said during the interview on Monday. Even some of the guards were plying him for tips. “I’m like, look, I’ve been here, you know, I don’t have access to any information. I don’t even know what the market looks like.”
He made friends with an inmate well-read on the subjects of crypto and blockchain who was serving a 25-year sentence for robbing a bank. They became workout buddies, spending 90 minutes a day in the open-air gym.
Since his release, Zhao said he had been trying to connect the inmate with pro-bono lawyers in hopes of shaving a few years off his sentence.
The other founder to match Zhao’s meteoric rise was his fiercest rival and social-media sparring partner, FTX Trading Ltd’s Sam Bankman-Fried. Bankman-Fried, who is serving 25 years in prison for fraud, partially blamed Zhao for accelerating the bank run that led to FTX’s blow up in late 2022.
Both ended up in prison, but Zhao said the common comparison between their cases is misplaced.
“That’s like comparing somebody who’s stealing money versus somebody who failed to register a company,” he said.
Zhao is adamant he is no longer involved in Binance’s decisions and has no desire to return. He is exploring investments in artificial intelligence and biotech and launching Giggle Academy, a nonprofit educational app.
Of course, his controlling stake means his presence still looms large at Binance. CZ’s shareholder rights were spared in the prosecution, and buoyant crypto prices have left him as the 25th-richest person on the Bloomberg Billionaires Index.
The Binance leadership asks his advice “very rarely,” and he obliges only with “historical context,” he said.
He is also a codefendant in a number of civil actions, including one filed by the US Securities and Exchange Commission, alongside Binance.
Yi He (易赫), Binance’s cofounder with whom Zhao has children, is still an important figure at the company.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
United Microelectronics Corp (UMC, 聯電) forecast that its wafer shipments this quarter would grow up to 7 percent sequentially and the factory utilization rate would rise to 75 percent, indicating that customers did not alter their ordering behavior due to the US President Donald Trump’s capricious US tariff policies. However, the uncertainty about US tariffs has weighed on the chipmaker’s business visibility for the second half of this year, UMC chief financial officer Liu Chi-tung (劉啟東) said at an online earnings conference yesterday. “Although the escalating trade tensions and global tariff policies have increased uncertainty in the semiconductor industry, we have not
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS