Changpeng Zhao, better known as CZ, is one of the most talked-about names in the crypto world. Founder of Binance, the world's largest exchange by trading volume, he built a global empire in just a few years, capable of influencing the market with his every move. But his recent history has become an example of how innovation and regulation can clash hard.
In 2023, the U.S. Department of Justice (DOJ) charged CZ with violations of the Bank Secrecy Act for failing to implement an effective anti-money laundering system within Binance. Zhao admitted his responsibilities and accepted a deal: a multi-billion dollar fine for the company ($4.3 billion) and 4 months in prison for himself. Despite the conviction, the Binance giant continued to operate, with new leadership and a more transparent approach toward regulators.
The problems, however, didn't stop there. In 2024, the FTX bankruptcy estate sued Binance and CZ, seeking approximately $1.8 billion. The lawsuit revolves around a 2021 transaction, when Binance sold its stake in FTX shortly before Sam Bankman-Fried's exchange collapsed. According to the allegations, those funds were handled improperly. Zhao rejected all accusations, calling the lawsuit "a desperate maneuver to recover liquidity after the FTX disaster."
Meanwhile, in 2023, the SEC and CFTC had initiated two separate legal actions against Binance for alleged violations of securities and derivatives regulations. However, in May 2025, the SEC officially dropped the case, acknowledging the exchange's cooperation and internal restructuring that clarified the relationship between its global entities.
Outside the United States, CZ also encountered obstacles in Europe: in Germany, the regulator BaFin raised doubts about his suitability to lead a regulated company, pushing Binance to withdraw its license application. Today, Zhao is no longer at the direct helm of Binance — by DOJ order — but continues to be an influential figure in the ecosystem, especially in the field of blockchain investments and decentralized infrastructure.
Despite the scandals, Binance remains a pillar of the industry, supported by a massive community and projects like BNB Chain, which continues to expand. Many in the crypto world see CZ as a controversial yet visionary figure: an entrepreneur who dared to push digital finance beyond permitted limits... and paid the price.
