Changpeng Zhao, known as CZ, is the founder and former CEO of the world’s largest cryptocurrency exchange, Binance. His determination and vision has made Binance one of the most influential cryptocurrency platforms in the world. Zhao is also a strong Bitcoin enthusiast and has invested much of his impressive fortune in the digital asset.
Changpeng Zhao’s early life
Changpeng Zhao was born on 5 February 1977 in China’s Jiangsu province to a family of outstanding intellectual achievement. His parents, both teachers, came from an academic background – CZ’s father was a professor at Hefei University of Science and Technology. In the 1980s, as a result of political tensions, including after the tragic events in Tiananmen Square in 1989, the family emigrated to Canada for better living conditions.
CZ spent his youthful years in Vancouver, where he was first exposed to computers when his father bought him a 286 DOS model for US$7,000 – a major expense in those days. From his earliest years he showed strong mathematical and analytical skills and an interest in computer programming. He studied computer science at McGill University in Montreal and, after graduation, interned at one of Tokyo’s stock exchanges.
Changpeng Zhao had various casual jobs before his career took off. He even worked at McDonald’s as a cook, which shows that he started from scratch. What’s more, he first tasted fresh milk when he was 12 years old, after arriving in Canada. Although CZ’s personal life is not widely known, it is known that he is not married and does not disclose many details about his private life.
Changpeng Zhao’s career
After graduating from university, CZ took a job as an executive for the Tokyo Stock Exchange. He then worked for Bloomberg Tradebook in New York for several years, where he developed software to match trading orders. From 2001 to 2005, he worked for Tradebook Futures, but this work did not give him satisfaction. Eventually, with a group of his friends, he founded an information technology consulting firm, Fusion Systems. This company specialised in trading systems for financial institutions.
CZ then founded Bijie Tech, a provider of cloud-based services for stock exchanges. This experience gave him the necessary skills to create Binance. In 2017, CZ launched Binance, a cryptocurrency exchange whose development coincided with China’s crackdown on digital assets. CZ decided to launch a fully remote exchange to circumvent strict Chinese regulations, which proved to be a hit.
Binance: success and challenges
Binance quickly became one of the largest cryptocurrency exchanges in the world, reaching its peak net worth in 2021, when the cryptocurrency market was booming. At the time, Binance reached a value of around US$100 billion. However, despite its rapid growth, Binance has had its challenges, including problems with regulators and security incidents.
In May 2019, US$40 million worth of BTC was stolen from the exchange, and in 2021, US regulators launched a money laundering investigation. In 2024, CZ was arrested on charges of failing to comply with AML (anti-money laundering) regulations. He was sentenced to four months in prison and Binance agreed to pay a fine of US$4.3 billion. After serving his sentence, CZ was banned for life from managing Binance, but remained its majority shareholder.
New Binance chapters and CZ’s plans
Following CZ’s arrest and his departure as CEO, Binance focused on compliance and strengthening its regulatory compliance. The new CEO, Richard Teng, has implemented changes to make compliance a competitive advantage for Binance. The company has invested nearly US$200 million in compliance programmes and increased the number of staff responsible for these issues.
CZ, meanwhile, decided to focus on educational and charitable activities after his release from prison in September 2024. He founded ‘Giggle Academy’, an education platform that aims to provide free access to education for children in developing countries. The platform aims to teach maths, science, finance and topics related to blockchain and AI. CZ also plans to get involved in the decentralised finance (DeFi) sector as a passive investor and mentor.
Binance and the collapse of FTX
Binance was also linked to the collapse of the FTX exchange. In 2021, Binance monetised its equity in FTX, raising US$2.1 billion, some of which was denominated in FTT token. When it emerged in 2022 that the balance sheet of Alameda Research – Sam Bankman-Fried’s company – was backed by the FTT token, CZ announced that it planned to sell Binance’s position in FTT, revealing the low liquidity of the token. This situation led to massive withdrawals of funds from FTX and ultimately to its collapse.
Summary
Changpeng Zhao is a figure who has had a huge impact on the development of the cryptocurrency market. Following his career as CEO of Binance, CZ plans to focus on education and supporting new ventures. Binance, under its new leadership, is now looking to strengthen its position by complying with regulations and bringing its business in line with regulatory requirements. Zhao, despite the controversy and challenges, remains one of the most important and wealthy individuals in the cryptocurrency industry, and his future plans include influencing education and the development of blockchain technology.
