Binance Co-Founder CZ Returns to Spotlight After Prison Release

In his first appearance after serving time in jail, former Binance chief executive officer (CEO) Changpeng Zhao, widely known as "CZ," said he still owns shares in the cryptocurrency exchange but cannot make decisions.

“I have stepped down from the CEO role. I’m not supposed to be involved in any day-to-day operations in the company. I’m still a large shareholder of Binance… I can request information, but I just can’t make decisions or give orders,” he said Thursday at Binance Blockchain Week in Dubai.

This marked Zhao’s first public appearance since his release from a U.S. prison on Sept.30, where he served a four-month sentence for violating the Bank Secrecy Act.

He described the transition as “emotionally difficult,” saying, “it’s a company I put my heart and soul into for seven years.”

Addressing rumors of a “lifetime ban” from Binance, Zhao said, “based on the best of my knowledge, there’s no word saying ‘lifetime’ or ‘ban.’ Those two words don’t exist in my agreement with the U.S. government.”

Binance maintains its position as the world’s leading cryptocurrency exchange, commanding roughly 24% of the market share among centralized exchanges (CEXs). The exchange processed $13.88 billion in volume over a 24-hour period, nearly triple the volume of its closest competitor, Crypto.com, according to data from Messari.

Addressing Allegations

In April, Zhao was sentenced after he pleaded guilty to violating the Bank Secrecy Act (BSA), which aims to prevent money laundering through stringent financial regulations. Alongside the sentencing, he was fined $50 million. Zhao’s estimated net worth stands at around $60 billion.

The U.S. Justice Department's investigation into Binance concluded with a $4 billion penalty against Binance Holdings Limited for unlicensed money transmitting, money laundering, and sanctions violations.

“I was the first person to go to prison over a Bank Secrecy Act violation,” said Zhao. “My reputation has changed… but it’s validation that there was no fraud… no users lost money with us.”

Zhao didn’t shy away from discussing his time behind bars.

“It’s not good… It’s less fun than now [at the Binance event]. Your freedom is taken away, and you have nothing to do, so it gives you a lot of time to reflect.”

He humorously added, “A couple of guards recognized me and asked me what coin they should buy. I told them, ‘Look, I’m inside. I don’t have any access to information.”

Zhao also took a moment to reflect on his fellow inmates.

“There are very nice people in prison… many of them are just there for minor offences, like 8-10 years, for things you wouldn't expect. I didn’t have any trouble from any of the inmates.”

While in prison, Zhao learned that former President Donald Trump and Vice President Kamala Harris had started discussing crypto on the presidential campaign trail.

"A week before the sentence… Elizabeth Warren declared a war on crypto. Then, by June, Donald Trump is pro-crypto… now both parties are pro-crypto. I’m still sitting in prison like, ‘What the hell happened?” he said.

Asked what’s next, Zhao announced he’ll focus on Giggle Academy, a digital educational platform. He first introduced the project last year, highlighting its mission to bring education to people who lack resources.