From Modest Beginnings to a Crypto Leader
Changpeng Zhao, better known as CZ, is a well-known personality in the cryptocurrency world for being the founder and leader of Binance, the world’s top cryptocurrency exchange by trading volume. His journey from humble beginnings to becoming a prominent figure in the crypto industry is widely recognized.
Roots and Early Years
Zhao was born in Jiangsu province, China, and later moved to Vancouver, British Columbia, Canada, when his family was exiled from China in the late 1980s. Despite facing hardships, Zhao displayed resilience from a young age, taking on various service sector jobs, including working at McDonald’s, to support his family.
Academic and Corporate Ventures
After moving to Canada, Zhao’s academic pursuits led him to McGill University in Montreal, where he majored in computer science. His professional career began in stock trading, developing software for the Tokyo Stock Exchange. He further honed his skills at Bloomberg Tradebook, making significant contributions to futures trading software.
In 2005, Zhao founded Fusion Systems in Shanghai, which was known for creating some of the fastest high-frequency trading systems for brokers.
Entry into Cryptocurrency
Zhao’s involvement in the cryptocurrency industry began in 2013 when he held key positions in projects like Blockchain.info and served as the Chief Technology Officer of OKCoin.
His career took a monumental turn in 2017 when he left OKCoin to establish Binance. A highly successful initial coin offering raised $15 million, propelling Binance to become the top cryptocurrency exchange globally by April 2018.
Recognition and Impact
Zhao’s accomplishments in the crypto sector were acknowledged by Forbes Magazine in February 2018, where he was ranked third on their “The Richest People In Cryptocurrency” list. By September 2018, his estimated net worth was approximately $1.4 billion.
Legal Challenges and Resignation
In a significant turn of events, Zhao resigned as Binance CEO after pleading guilty to money laundering charges in November 2023. As part of a plea deal, he agreed to pay a $50 million fine, separate from Binance’s $4.3 billion settlement with the DOJ. Prosecutors are seeking an 18-month prison sentence for Zhao.
Zhao’s Departure and Future Plans
Following his resignation, Zhao acknowledged his responsibility for his actions and expressed his intention to remain a passive investor in blockchain and other areas. He confirmed his ongoing involvement with Binance in a consultative capacity and revealed plans to remain as a shareholder. However, he is barred from active involvement in Binance for three years following the appointment of a monitor, according to The New York Times.
Leadership Transition
After Zhao’s resignation, Binance’s former Global Head of Regional Markets, Richard Teng, took over as CEO, expressing his commitment to leading Binance in his new role.
Zhao’s contributions to the cryptocurrency industry and the rapid growth of Binance have left a significant mark, despite recent legal challenges and his departure from the company’s leadership.
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