You must be aware of cryptocurrency and crypto exchange – the virtual place to trade cryptocurrencies. Of the leading crypto exchanges in the world, one is Binance. It was founded in July 2017 through $15 million initial coin offering. Binance touched many new heights especially when it facilitated spot trades worth $5.3 trillion in 2022 which amounted to over two-thirds of all volume handled by centralized crypto exchanges.
Who Is Changpeng Zhao?
Changpeng Zhao, who also goes by the name CZ, is the founder of Binance which is among the largest crypto exchange in the world. Changpeng Zhao is a Chinese-Canadian coder who built this high-frequency trading system. Zhao was born in China’s Jiangsu province in 1977. His father was a professor who faced temporary exile shortly after CZ was born. Zhao fled China at age 12 following the Tiananmen Square massacre.
Why Is Changpeng Zhao In The News?
Zhao and Binance have been embroiled in controversies lately. Zhao started gaining limelight in November 2022 after Binance rival FTX collapsed and went into insolvency. Meanwhile, Binance also faced regulatory scrutiny across the United States, Europe and Asia over concerns of permitting money laundering. While Binance has denied all wrongdoing, the company along with its founder Zhao were named in a suit filed by the US Commodity Futures Trading Commission (CFTC) on March 27, 2023. The allegations against Zhao and Binance include offering derivates trading to US residents in Bitcoin (BTC), Ether (ETH) and other cryptocurrencies in a bid to evade US regulations.
The Highs And Lows In Changpeng Zhao’s Life
Due to the exile faced by his father, teenager Zhao worked to help in covering the household expenses. He worked many jobs including at McDonald’s and working overnight shifts at a gas station. His life took a turn for the good when Zhao returned to China in 2005 to try his hand at several different tech startups. After trying his hands at various startups, he founded Binance in 2017 but was forced to move out of China once again as the Chinese government then banned crypto-currency. By 2021, Binance was handling over $34 trillion in trading volume.
Background
According to reports, Binance and its founder-CEO Changpeng Zhao are accused of operating a web of deception that included artificially inflating its trading volumes and diverting customer assets. The US regulators also alleged that Sigma Chain, a trading firm owned and controlled by Zhao, engaged in wash trading between September 2019 and June 2022. The wash trading included artificially inflating the trading volume of crypto asset securities on Binance. Zhao has said that Binance would issue a response once it has reviewed the SEC’s complaint, and said the exchange’s team is “standing by, ensuring systems are stable, including withdrawals, and deposits.”
