Founder-CEO of Binance, the world’s largest cryptocurrency exchange Changpeng Zhao, or CZ, as he is fondly known by crypto enthusiasts, has stepped down from his role after pleading guilty to violating US anti-money laundering laws, according to a report by Reuters.
Also read: What is Binance’s relationship with terrorist groups like Hamas, Al-Qaeda, ISIS and Palestinian Islamic Jihad? Explained
Zhao agreed to a $4.3 billion settlement in a Seattle court on Nov. 21, including a personal payout of $50 million, to settle the matter, the news agency said, citing prosecutors in the case. They added that this is among the largest corporate penalties in US history.
Binance will pay $1.81 billion within a timeline of 15 months, followed by another $2.51 billion forfeiture as part of the deal, prosecutors told Reuters.
Also Read: ‘I Made Mistakes…,’ CEO Changpeng Zhao Resigns After Pleading Guilty to Money Laundering Violations, Terrible Relationships
However, while this latest development comes as another big blow to the crypto sector after FTX’s Sam Bankman-Fried was convicted of fraud just earlier this month, legal experts told Reuters the deal is a “good outcome” for Zhao personally. It leaves his wealth intact and also allows him to retain his investment in Binance, they noted.
So, who is Changpeng Zhao?
A Canadian citizen, 44-year-old Zhao was born in China’s Jiangsu province. His family moved to Vancouver when Zhao was 12 years old after his father – a university professor – was banished to the countryside during Mao’s Cultural Revolution, according to a Bloomberg report.
Young Zhao was exposed to technology and studied computer science. He has a degree in the field from McGill University. Once in the professional field, he had jobs building business systems in New York and Tokyo, it said.
Read also | Binance lays off more than 1,000 employees, including 36 in India – Report
Zhao dipped his toes into crypto in 2013 during a friendly poker game with investor Ron Cao and BTC China CEO Bobby Lee in Shanghai, the Bloomberg report added. During the match both of Zhao’s teammates encouraged him to put 10 percent of his net worth into Bitcoin, he reportedly did his research and then sold his apartment for Bitcoin.
He also worked at crypto companies OKCoin and Blockchain.info before starting his own venture. Zhao founded Bitcoin in 2017 together with Chief Marketing Officer Yi He. Zhao and Yi have children together.
The company’s name is a mix of binary and finance, the report added. Zhao reportedly has his company’s logo tattooed on his arm.
Also read: One year after FTX imploded, this is how crypto is changing
Binance quickly grew into the largest cryptocurrency exchange in the world and made Zhao the richest person in the sector. Over the years he also joined the ranks of the world’s richest.
According to the Bloomberg Billionaires Index (BBI), Zhao is ranked 68th richest in the world with a fortune of US$23.5 billion.
Milestone Warning!Livemint tops charts as the fastest growing news site in the world 🌏 Click here to know more
Catch all Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates and Live Business News.
More or less
Updated: 22 Nov 2023, 07:44 IST