After a prison sentence and forced exit from Binance’s leadership, Changpeng Zhao (CZ), the former CEO of Binance, has recently revealed his plans for the future following his departure from the crypto exchange. After stepping down as part of a $4.3 billion settlement with U.S. authorities and while serving his prison time, his net worth exploded to $60 billion making him the #25 of richest people worldwide.
Context of Legal Issues
The context surrounding CZ‘s departure from Binance involves significant legal challenges: Money Laundering Charges and Settlement In November 2023, Binance and CZ pleaded guilty to federal charges related to anti-money laundering violations and sanctions evasion2. The settlement included:
- A $4.3 billion fine for Binance
- CZ’s personal fine of $50 million
- CZ’s resignation as CEO of Binance
Sentencing On April 30, 2024, CZ was sentenced to four months in prison for his role in the money laundering violations. This sentence was significantly less than the three years prosecutors had sought. Violations and Admissions Binance admitted to:
- Violating anti-money laundering laws
- Engaging in unlicensed money transmitting
- Sanctions violations
The company was accused of failing to prevent suspicious transactions involving terrorist groups and other illicit actors.
Impact on Binance
Following the settlement and CZ‘s departure:
- Binance agreed to undergo compliance monitoring for up to five years.
- The company is required to completely exit the United States market.
- A new CEO, Richard Teng, has taken over, focusing on regulatory compliance and sustainability.
The CZ Post-Prison Situation
CZ net worth has significantly increased despite his legal troubles and prison sentence. As of November 3, 2024, CZ‘s estimated net worth is $60 billion. His 90% equity stake in Binance, the large crypto exchange, is valued at $33 billion despite CZ stepping down as CEO in November 2023. Forbes estimates that CZ holds to 94 million tokens or 64% of the total 147.5 million BNB tokens in circulation. Forbes estimates that Binance owns 71% of the BNB supply. BNB tokens are issued by Binance and has a market capitalization of $81 billion (Nov 3, 2024).
Speaking at Binance Blockchain Week this week in a public appearance since his release, CZ addressed his sentencing and future intentions. CZ has expressed his intention to focus on venture capital investments, particularly in Web3 and artificial intelligence startups. He aims to leverage his experience and resources to support innovative projects in these emerging fields.
As CZ moves forward, he faces restrictions on involvement with Binance for three years but appears determined to contribute to the blockchain and AI sectors in new capacities.
