Changpeng Zhao, known as CZ, is the founder and former CEO of Binance—one of the largest cryptocurrency exchanges in the world. His determination and vision helped Binance dominate the digital asset market. He is also a strong advocate for Bitcoin and has invested most of his fortune in cryptocurrencies.
But who exactly is CZ? How did he start his career, and why is his story so fascinating?
Early Life and Career Beginnings
Changpeng Zhao was born on February 5, 1977, in Jiangsu, China, into an academic family. His father was a professor, and his mother was a teacher. In the 1980s, due to political tensions in China, the family moved to Canada, seeking better opportunities.
CZ grew up in Vancouver, where he developed an early interest in computers and programming. His first computer was a 286 DOS model, which cost a staggering $7,000 at the time. With a natural talent for mathematics and analytical thinking, he pursued a career in technology.
He studied computer science at McGill University in Montreal and later began working in finance. Before achieving success, he took on various part-time jobs, including working at McDonald’s as a cook.
Career and the Road to Binance
After graduating, Zhao worked as a programmer at the Tokyo Stock Exchange, developing trading systems. He later joined Bloomberg Tradebook in New York, where he worked on financial trading software.
After gaining experience in the industry, he co-founded Fusion Systems, a company specializing in high-frequency trading technology for banks and financial institutions. Later, he created Bijie Tech, a cloud-based exchange platform. These experiences provided him with the knowledge needed to launch Binance.
In 2017, Zhao saw the growing potential of the cryptocurrency market and decided to start his own exchange. This led to the creation of Binance, a platform for buying and selling cryptocurrencies.
Binance – Success and Challenges
From the start, Binance attracted users due to its fast transactions, low fees, and wide range of cryptocurrencies. The platform grew rapidly, and by 2021, Binance was valued at approximately $100 billion, making it one of the most dominant crypto exchanges globally.
However, Binance also faced challenges. In 2019, hackers stole $40 million worth of Bitcoin from the exchange. Over the years, Binance came under increased regulatory scrutiny, with authorities accusing it of failing to comply with anti-money laundering laws.
In 2024, CZ was sentenced to four months in prison for violating financial regulations. Binance also agreed to pay a $4.3 billion fine. Zhao was forced to step down as CEO and was banned for life from managing Binance, although he remains its largest shareholder.
What’s Next for Binance and CZ?
After CZ stepped down, Richard Teng took over as the new CEO, focusing on strengthening Binance’s compliance with global regulations. The company invested $200 million in compliance programs and expanded its legal and regulatory teams.
After being released from prison in September 2024, CZ shifted his focus to education and philanthropy. He founded Giggle Academy, an educational platform designed to provide free learning resources for children in developing countries. The platform offers courses in mathematics, science, finance, blockchain, and AI.
Additionally, CZ plans to invest in the decentralized finance (DeFi) sector, not as an active entrepreneur but as an investor and mentor.
Binance and the Collapse of FTX
Binance played a significant role in the collapse of FTX, another major cryptocurrency exchange founded by Sam Bankman-Fried.
In 2021, Binance sold its FTX stake for $2.1 billion, part of which was in FTT tokens. A year later, it was revealed that Bankman-Fried’s company, Alameda Research, was heavily reliant on FTT tokens for its financial stability.
CZ announced that Binance would sell its FTT holdings, which triggered panic among investors and mass withdrawals from FTX. This liquidity crisis led to FTX’s downfall, and Bankman-Fried was later sentenced to a long-term prison sentence.
Summary
Changpeng Zhao is one of the most influential figures in the cryptocurrency industry. His story is a testament to how someone can rise from working at McDonald’s to founding a multi-billion dollar company.
