Changpeng Zhao, the founder of the cryptocurrency exchange Binance, has spent the past five months traveling the United States, networking with other entrepreneurs and laying the groundwork for his next ventures. After pleading guilty to a money-laundering violation in November, Mr. Zhao, also known as CZ, resigned as Binance’s chief executive and agreed to pay a $50 million fine. He is now facing a sentencing hearing in federal court, with prosecutors seeking a three-year prison term, while his defense team is asking for probation and no time behind bars. Despite the impending legal proceedings, Mr. Zhao is already looking towards the future, with interests in investing in artificial intelligence, biotechnology, and online education.
As one of the most powerful figures in the global crypto industry, Mr. Zhao’s activities contrast sharply with those of Sam Bankman-Fried, the founder of collapsed crypto exchange FTX. While Mr. Bankman-Fried was convicted of fraud and sentenced to 25 years in prison, Mr. Zhao still enjoys widespread support in the crypto industry. Current and former Binance employees have submitted letters asking for leniency in his sentencing, and dozens of other crypto entrepreneurs, investors, and dignitaries continue to support him. Despite the challenges faced by the crypto industry, many are rallying behind Mr. Zhao, viewing any potential prison time as a small price to pay for his immense wealth.
Throughout Binance’s existence, Mr. Zhao faced accusations of breaking the law to build his crypto empire. The world’s largest crypto exchange, Binance, processed the majority of transactions in the industry, and Mr. Zhao gained celebrity status. However, the company recently settled charges of allowing criminal activity to flourish on the exchange, agreeing to pay a $4.3 billion settlement to the U.S. government. Prosecutors have accused Mr. Zhao of violating U.S. law on an unprecedented scale and are calling for a sentence that reflects the gravity of his crimes.
Despite the legal challenges he faces, Mr. Zhao is already planning his next moves. He has expressed interest in investing in various sectors, including artificial intelligence, biotechnology, and disease prevention. Mr. Zhao recently announced the launch of Giggle Academy, a free online learning platform for children that will incorporate AI, automation, and nonfungible tokens (NFTs). As he navigates the legal proceedings and prepares for the future, Mr. Zhao has been meeting with influential acquaintances, including former U.S. Senator Max Baucus and other entrepreneurs and executives in the industry.
On his travels across the United States, Mr. Zhao has enjoyed home-cooked dinners with high-profile figures, visited vacation spots known for their national parks, and engaged in discussions about the challenges and opportunities facing start-ups. Despite the legal cloud hanging over him, Mr. Zhao remains focused on his plans for the future, including investments in key sectors and the development of new ventures. As he continues to navigate the complexities of the crypto industry and the legal system, Mr. Zhao’s networking efforts and discussions with industry leaders suggest that he is determined to carve out a new path in the wake of the challenges he has faced.
