In 2023, Changpeng Zhao, the founder and ex-CEO of the the leading crypto exchange Binance, was forced to leave office after pleading guilty to failing to comply with money laundering policies. Despite this, Zhao continues to be influential in the crypto industry. Read on to learn about Changpeng Zhao’s personal life and his entrepreneurial journey.
Introducing Changpeng Zhao
Zhao is a Chinese citizen born in 1977. He lived in China until he reached 12, when he flew to Canada to join his father. A few years later, Zhao joined one of Canada’s most popular learning institutions, McGill University, where he pursued a bachelor’s degree in computer science. After completing his studies, Bloomberg hired him to work as a systems programmer.
How Much is Zhao Worth?
In 2005, Zhao decided to go back to China. Twelve years later, he established the most trusted cryptocurrency exchange, Binance. Following the success of the trading platform, Zhao’s net worth jumped to $100 billion in 2021 before declining to $35.8 billion as of February 2024, per data from the Bloomberg Billionaire Index. He’s now the 38th richest individual in the world.
Philanthropy
While serving as Binance CEO, Zhao launched a charity foundation to donate funds to various charitable causes. For example, in September 2023, Zhao announced that the foundation had donated over $3.2 million in BNB to Morocco following the deadly earthquake. Moreover, the Binance founder recently said he doesn’t need a lot of money to live. So, he looks to donate 95% of his wealth to charity in the coming years.
Changpeng Zhao’s Importance in the Crypto Industry
As mentioned earlier, Zhao continues to be an influential figure in crypto. He announced in December that he would invest in promising crypto startups and offer guidance when need be. During his tenure at Binance, Bloomberg recognized him as one of the 50 most influential people in 2020.
Zhao’s Entrepreneurial Journey
Zhao first stepped into the crypto space in 2013. At the time, he was hired as Head of Development by Blockchain.info, where he learned about blockchain wallets. He then left the company and joined OKCoin. This gave him an opportunity to learn how crypto exchanges work.
In 2017, Zhao took a step of faith and launched his own cryptocurrency exchange, Binance. The platform gained the attention of many crypto enthusiasts due to its easy-to-navigate user interface. Within a few years, Binance became the world’s leading exchange by trading volume.
Zhao oversaw the launch of two blockchains (BNB Chain and Binance Chain) and the native token of Binance, BNB, which is now a top-five cryptocurrency based on market capitalization.
What Are Some of the Challenges Faced by Zhao and Binance?
The road to the top hasn’t been smooth for Binance and its founder. Zhao and his exchange have crossed paths with several regulators over the past few years. For instance, When Binance launched in 2017, the Chinese government blocked the exchange from serving Chinese users, prompting it to leave the country and set up shop overseas.
In 2023, the United States Securities and Exchange Commission accused Zhao and Binance of illegally collecting transaction fees worth $11 billion in a span of three years. Further, the US Department of Justice leveled criminal charges against Zhao and his exchange in November 2023, accusing the two parties of enabling money laundering.
Zhao and Binance pleaded guilty to those charges and paid over $3.9 billion to settle them. Moreover, the former CEO paid an extra $150 million to settle charges related to failing to follow KYC rules. Also, he agreed to resign as Binance CEO.
Changpeng Zhao’s Position on Crypto Regulation
Zhao believes that for blockchain technology to realize its full potential, there is a need for the establishment of clear regulations. He has been calling for governments across the world to adopt crypto rules that will promote blockchain innovation.
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