Changpeng Zhao (CZ), the billionaire founder of cryptocurrency exchange Binance, received a rockstar’s welcome at Dubai’s Coca-Cola Arena recently, with cheers of “the king is back!” echoing through the venue. This triumphant return follows a four-month prison sentence in the US after a plea deal with the Department of Justice. Speaking to Bloomberg a day before Donald Trump’s surprising presidential victory sent crypto prices (and CZ’s net worth) soaring, Zhao reflected on his time behind bars and his unexpected separation from Binance.
Zhao, whose estimated net worth jumped to almost $53 billion following Trump’s win, stated that he has no intention of returning as Binance’s CEO. “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,” he remarked, indicating a desire to move on from the demanding role. He even revealed receiving offers to sell his controlling stake in the exchange, the source of his vast wealth, though he declined to provide specifics. “I’m happy to review every offer, but so far I haven’t done anything,” he confirmed, emphasizing his current status as a “regular shareholder.”
Despite his official departure, the enthusiastic reception in Dubai highlighted the inextricable link between Zhao and Binance. The plea deal, part of a $4.3 billion settlement for violating US sanctions and operating an unlicensed exchange, mandated his resignation as CEO. Now a self-described passive investor, Zhao, who sports a Binance tattoo on his arm, insists his “felon status” hasn’t hampered his business dealings.
Prior to the DOJ settlement, Binance invested $500 million in Elon Musk’s acquisition of Twitter (now X). Zhao expressed satisfaction with the platform’s direction under Musk, stating, “Things have moved a lot faster at Twitter. There’s new features, change happens at a much faster pace.” He downplayed concerns about the investment’s fluctuating value, emphasizing a long-term investment strategy.
Zhao’s prison stint at the Federal Correctional Institution Lompoc II involved a daily routine of exercise, book-writing, and navigating the less-than-ideal prison cuisine. He described adapting to a diet far from his preferred paleo regime, emphasizing the lack of protein and abundance of starches and sugars. Initially unrecognized, he eventually gained notoriety as a “big Bitcoin guy,” fielding cryptocurrency investment inquiries from fellow inmates and even prison guards. He recounted befriending an inmate serving a 25-year sentence for bank robbery, with whom he shared workout sessions and a mutual interest in crypto. Zhao is now assisting this inmate in seeking legal representation to potentially reduce his sentence.
During Zhao’s incarceration, newly appointed CEO Richard Teng, formerly an Abu Dhabi regulator, steered Binance through a challenging period for the crypto market. While many companies faltered under regulatory scrutiny and market downturns, Binance remained a dominant player, and Zhao’s reputation appears largely unscathed.
Zhao contrasted his case with that of his former rival, Sam Bankman-Fried, the disgraced founder of FTX, currently serving a 25-year sentence for fraud. He dismissed comparisons between their situations, arguing, “That’s like comparing somebody who’s stealing money versus somebody who failed to register a company.”
While maintaining his significant stake in Binance, Zhao claims to play a minimal advisory role, offering only “historical context” when consulted by the leadership. He remains a co-defendant in ongoing civil lawsuits, including one filed by the Securities and Exchange Commission.
Now reunited with his family, Zhao expresses an enduring “emotional attachment” to Binance, likening it to a grown child no longer requiring his constant involvement. He describes his current life as “a lot more relaxed,” embracing his new, less demanding role in the crypto world.
