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You must know about cryptocurrency and crypto exchange – virtual place to trade cryptocurrencies. Binance is one of the leading crypto exchanges in the world. It was founded in July 2017 through an initial coin offering of $15 million. Binance touched several new highs, especially as it facilitated $5.3 trillion worth of spot trades in 2022, more than two-thirds of all volume handled by centralized crypto exchanges.
Who is Changpeng Zhao?
Changpeng Zhao, also known as CZ, is the founder of Binance, one of the largest crypto exchanges in the world. Changpeng Zhao is a Chinese-Canadian coder who created this high-frequency trading system. Zhao was born in 1977 in Jiangsu Province, China. His father was a professor who faced temporary exile soon after CZ’s birth. Zhao fled China at the age of 12 after the Tiananmen Square Massacre.
Changpeng Zhao Why in the news?
Zhao and Binance have been embroiled in controversy recently. Zhao began making headlines in November 2022 following the collapse and bankruptcy of Binance rival FTX. Meanwhile, Binance also faced regulatory scrutiny in the United States, Europe and Asia over concerns of allowing money laundering. While Binance has denied all wrongdoing, the company and its founder Zhao were named in a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) on March 27, 2023. Bitcoin (BTC), Ether (ETH) and other cryptocurrencies to avoid US regulations.
The ups and downs of Changpeng Zhao’s life
Due to his father’s exile, the teenage Zhao worked to help meet household expenses. He worked several jobs, including working overnight at McDonald’s and at a gas station. His life took a turn when Zhao returned to China in 2005 to try his hand at several different tech startups. After dabbling in various startups, he founded Binance in 2017, but was once again forced to move out of China as the Chinese government banned crypto-currency. By 2021, Binance was handling over $34 trillion in trading volume.
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According to reports, Binance and its founder-CEO Changpeng Zhao are accused of running a web of fraud, which includes artificially inflating its trading volume and diverting customer assets. 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. Wash trading consisted of artificially inflating the trading volume of crypto asset securities on Binance. Zhao has said that Binance will issue a response after reviewing the SEC’s complaint, adding that the exchange’s team is “standing by, making sure systems including withdrawals and deposits are stable.”
