Binance co-founder CZ free — What’s next and what it means for crypto

Changpeng Zhao, co-founder and former CEO of Binance — commonly known as CZ — fulfilled on Sept. 27 his four-month sentence for failing to maintain an effective Anti-Money Laundering (AML) program at the Binance cryptocurrency exchange.

Zhao’s options may seem limitless as he’s amassed a personal fortune of $60 billion, placing him as the 25th-wealthiest person in the world.

One thing is for certain: Zhao will not be returning to Binance. According to Binance’s plea agreement filed on Nov. 21, the crypto firm agreed that Zhao was prohibited from “any present or future involvement in operating or managing” the exchange.

In a Sept. 24 interview with industry media, Richard Teng, current CEO of Binance appointed after CZ’s removal, dodged questions about whether Zhao would be involved with the crypto exchange but said that he’d remain a major shareholder.

As CZ mentioned in his farewell X post, “Binance is no longer a baby. It is time for me to let it walk and run.” 

Farewell, Binance; hello, global education

Venture capitalist Tim Draper told Cointelegraph that he hopes Zhao “continues to thrive once released and continues to pursue his original mission that will lead us to a Bitcoin economy.”

In Zhao’s farewell message on X, he hinted he would like to dive into the sector of decentralized finance (DeFi). With his fortune, he could support determined projects by passive investing and forming part of “blockchain/Web3/DeFi, AI and biotech” startups.

Related: Stablecoin growth soars as crypto global mass adoption ramps up

While he said that he can’t see himself leading a startup as a CEO, it can be hard to believe that an entrepreneur like Zhao will lie back and not participate in the thriving crypto sector.

Zhao is open to the possibility of helping upcoming entrepreneurs as a coach or mentor. His focus seems to hint at an effort toward education, a significant and needed feature for blockchain technology-related projects. 

I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).

I will remain a…

— CZ 🔶 BNB (@cz_binance) May 1, 2024

On March 19, Zhao announced the foundations of his educational platform, Giggle Academy. As mentioned in the concept paper, the platform aims to aid children under 13 years old in developing countries who do not have access to education. 

Giggle Academy will focus on offering basic knowledge in fields such as math, science, physics, biology or finance. The free academy also intends to cover “topics current schools don’t teach,” such as negotiations, finance, entrepreneurship, sales, legal, accounting, blockchain and artificial intelligence. 

Zhao claimed that in the following months, he’ll be motivated to pursue the offering of a free educational platform, as his intention is to find something that has the “maximum positive impact” on the world. 

He admitted that he would like to fight corruption, world hunger, climate change, etc., but his lack of expertise wouldn’t be effective. He intends to use his experience building teams dedicated to software platforms to reach hundreds of millions of people. Zhao stated that it was “the most impactful thing that I could come up with for the next chapter of my life.”

Memoir of a crypto career coming up

Zhao led a busy life as CEO of the biggest crypto exchange. He admitted in his farewell from Binance that he “hadn’t had a single day of real (phone off) break for the last six and half years.” His jail time allowed him some quiet time that he would have never had in his prior life.

On May 12, he implied he might work on a book or memoir, which received a wide reception from the crypto sector.

Zhao is arguably the third most influential figure in crypto, following Satoshi and Ethereum co-founder Vitalik Buterin. Most of the crypto industry will likely welcome a memoir or autobiography.

Indeed, his former colleague, Yi He, co-founder and current chief customer service officer of Binance, wrote:

Do you want to know how CZ went from being an hourly worker at @McDonalds ‘s to the founder of @binance ? Do you want to know the secret of Binance’s success? https://t.co/Apyem78WRb

— Yi He (@heyibinance) May 12, 2024

CZ is free, but Binance still has ongoing legal fights 

Many regarded Zhao’s move to plead guilty as the right thing to do.

The stakes were high, as Binance’s failure to comply with AML standards could have landed him a sentence of 18 months to three years. Prosecutor Kevin Mosley specified that “incarceration is necessary to reflect the seriousness of the offense.”

Eventually, Zhao reached a settlement in which Binance agreed to pay a $4.3-billion fine, and the former CEO would face only four months in jail. Binance must further allow United States regulators to monitor their systems to ensure that Binance has the proper anti-terrorism protocols in place.

Recent: Trump crypto venture WLFI a ‘potential pump-and-dump disaster’ 

Nevertheless, the settlement only addresses US regulatory concerns, leaving unresolved legal matters in other jurisdictions. Consequently, Binance may face continued challenges and potential penalties or restrictions in these regions, depending on ongoing investigations and the gravity of alleged infractions.

Binance’s new era without CZ as its CEO seems to have changed gears from expanding without following specific guidelines to investing heavily in compliance, transitioning the crypto exchange into a new phase.