Changpeng Zhao (“CZ” as popularly known), the founder and former CEO of crypto exchange giant Binance, walked free from a US correctional facility on Friday after serving a four-month sentence. The result of a federal probe, CZ’s conviction stemmed from Binance’s failure to curb rampant illicit activity on its platform.
Contrary to some recent reports, Richard Teng, the current CEO of Binance, didn’t explicitly state that CZ won’t be readmitted to Binance. However, according to Binance’s plea agreement filed on November 21, CZ is prohibited from “any present or future involvement in operating or managing” the exchange. This suggests that CZ’s return to Binance is unlikely.
While CZ remains a major shareholder of Binance, holding an estimated 90% stake in the company, his involvement in the exchange’s operations appears to be limited by the terms of his plea agreement.
Read also: Binance turbulence: CZ exit as CEO and its impact on the crypto market
Why CZ was arrested, charged, and jailed
The DOJ investigation revealed that Binance knowingly facilitated money laundering, sanctions evasion, and other criminal activities, compromising national security and financial integrity.
As part of his plea agreement, CZ admitted to the DOJ’s charges, paid a $50 million fine, and relinquished his executive role at Binance. The exchange itself was slapped with a staggering $4.3 billion settlement.
Despite his departure from Binance’s leadership, CZ retains an estimated 90% stake in the company. This stake catapults him to the 25th spot on the global rich list, with a net worth of $61 billion.
CZ’s contributions to the global crypto industry are significant, globally democratizing crypto access, enabling crypto adoption, and driving industry advocacy, especially when the terrain was as tough as it could ever get.
CZ’s Brief Bio and Brief History of Binance
Born in 1977 in Jiangsu, China, CZ is a Canadian-Chinese entrepreneur and programmer. He began his career in finance, working at Thomson Reuters and Bloomberg. CZ’s entry into the crypto space started with cryptocurrency exchange OKCoin in 2014.
Binance’s journey began as follows:
- July 2017: CZ founded Binance in Shanghai, China, with a $15 million ICO (Initial Coin Offering) for Binance Coin (BNB).
- August 2017: Binance launched its cryptocurrency exchange platform.
- October 2017: Binance expanded globally, establishing itself in over 180 countries.
- 2018: Binance became the world’s largest cryptocurrency exchange by trading volume.
- 2019: Binance launched Binance Smart Chain, a decentralized finance (DeFi) platform.
- Today: Binance is a leading crypto ecosystem, offering exchange services, wallet solutions, crypto payments, blockchain development, and education and research initiatives.
Read also: BNB breaks $600 ahead of Binance founder’s release.
What next for CZ?
How will CZ’s legacy at Binance influence his future endeavors?
In a surprising move, CZ unveiled his next endeavor, Giggle Academy, an education platform promising to revolutionize learning.
While details remain scarce at the time of writing, Giggle Academy’s mission is seeking to make quality education accessible, engaging, and fun for all. It will be all about democratizing access to quality education, fostering innovation and entrepreneurship, and developing a skilled workforce for the digital economy.
Giggle Academy will focus on the following:
- Blockchain and Crypto Education: Developing curriculum and resources for understanding blockchain technology and cryptocurrency, suggesting that Giggle Academy will have some level of implications for the crypto industry and beyond.
- STEM Education: Focusing on science, technology, engineering, and mathematics (STEM) fields.
- Personal Development: Offering courses and workshops on entrepreneurship, leadership, and critical thinking.
Giggle Academy will feature online courses, live workshops, and community forums (such as discussion boards for students, educators, and industry professionals), and a resource library for access to relevant books, articles, and research papers.
It remains to be seen if Giggle Academy will integrate blockchain technology for secure, transparent, and efficient learning management and how CZ’s huge experience in the crypto space will influence both the platform’s direction and other future endeavors.
Impact of CZ’s Release on Crypto Market, BNB
CZ’s release from US custody is expected to positively impact the crypto market, particularly Binance Coin (BNB). His release on a $175 million bond has already led to a slight recovery of BNB’s price, which had previously crashed by over 8% following his guilty plea and resignation as CEO.
As CZ is allowed to return to Dubai, market sentiment may shift, and investors could regain confidence in Binance and its native cryptocurrency, BNB. His release is no doubt a positive development for Binance and the broader crypto market.
Apart from market sentiments, the DOJ settlement with Binance and CZ’s guilty plea may provide clarity on the exchange’s regulatory status, potentially boosting investor confidence.
Historically, CZ’s leadership has been instrumental in driving Binance’s success, and his release may alleviate some of the regulatory uncertainty surrounding the exchange.
According to CoinMarkerCap, the current BNB price is $603.14, with a 24-hour trading volume of $979,297,053 and a market cap of $89,660,569,71. This ranks BNB as the fourth most valuable cryptocurrency out of 42,617 coins. BNB price has however dropped by 0.39% in the last 24 hours, per CoinMarkerCap.
Here are some key stats about BNB:
– Market Cap: $89,660,569,719
– 24H Trading Volume: $979,297,053
– Circulating Supply: 148,655,353 BNB
– Total Supply: 148,930,232 BNB
– All-Time High: $710
Read also: BNB hits new all-time high of $710: Prospects for investors and traders
Photo credit: Reuters
