Marking two years since the collapse of FTX, former Binance CEO Changpeng Zhao (CZ) shared notable reflections. On social media, he compared the FTX downfall to major financial disasters that have occurred over the past two decades.
Reflecting on the Shocking Collapse of FTX
FTX, once among the world’s top cryptocurrency exchanges, declared bankruptcy in November 2022 following a series of severe liquidity crises. Investigations later revealed that founder Sam Bankman-Fried (SBF) had misappropriated customer funds, leading to his 25-year prison sentence earlier this year.
Meanwhile, although CZ has retained his standing as a major figure in the industry, he has faced his own legal challenges. Following an investigation by the U.S. Department of Justice (DOJ), he was required to step down as CEO of Binance in 2023 and served a four-month sentence due to anti-money laundering compliance violations. CZ emphasized that he should not be compared to SBF, as his issues stemmed from compliance rather than fraud. He likened this comparison to “comparing a thief to someone who forgot to register a business.”
Days in Prison and a New Journey
CZ’s time serving his sentence in a low-security prison in California left a strong impression on him. Beyond adapting his usual Paleo diet, he also befriended a fellow inmate—a bank robber with a keen interest in crypto. In addition to exercising together, CZ helped this friend connect with a pro bono lawyer to appeal for a reduced sentence.
These experiences gave CZ a fresh perspective on life. He developed a newfound interest in fields like artificial intelligence and biotechnology and launched a non-profit education project called Giggle Academy.
Related: CZ Asserts He Will Never Sell His Stake in Binance
Binance Steps into a New Era
Though he no longer leads Binance, CZ remains the company’s largest shareholder and is entitled to stay informed on its operations. However, he expressed no intention of returning to a leadership role, likening himself to “a father watching his child grow, no longer needing to intervene.”
Under the guidance of new CEO Richard Teng, former head of the Abu Dhabi Global Market, Binance has maintained its position as the world’s leading exchange. Though no longer at the helm, CZ’s influence on the cryptocurrency industry endures, and his impact on the community remains as strong as ever.
