To end the dispute, Binance founder-CEO Changpeng Zhao agreed to a $4.3 billion settlement arrangement in a Seattle court on November 21, including a personal contribution of $50 million.
Binance founder and CEO Changpeng Zhao departs federal court in Seattle on November 21, 2023, after pleading guilty to violating anti-money laundering laws in the United States.
Changpeng Zhao, the founder-CEO of Binance, the world’s largest cryptocurrency exchange, has stepped down from his position after pleading guilty to violating US anti-money laundering rules, according to Reuters.
Zhao consented to a $4.3 billion settlement arrangement in a Seattle court on November 21, including a personal reimbursement of $50 million, according to prosecutors in the case, according to the news agency. They also stated that this is one of the highest corporate penalties in US history.
Binance will pay $1.81 billion over 15 months, followed by a $2.51 billion forfeiture as part of the arrangement, according to prosecutors.
While this recent development is another major setback for the crypto business after FTX’s Sam Bankman-Fried was convicted of fraud earlier this month, legal experts told Reuters that the arrangement is “a good outcome” for Zhao personally. It preserves his money and lets him to keep his interest in Binance, they say.
So, who exactly is Changpeng Zhao?
Zhao, a Canadian citizen, was born in China’s Jiangsu province. According to Bloomberg, Zhao’s family relocated to Vancouver when he was 12 years old after his father, a university professor, was exiled to the countryside during Mao’s Cultural Revolution.
Young Zhao was exposed to technology and pursued a degree in computer science. He graduated from McGill University with a degree in the subject. He worked as a professional trader in New York and Tokyo, according to the report.
According to Bloomberg, Zhao first became interested in cryptocurrency in 2013 at a casual poker game in Shanghai with investor Ron Cao and BTC China CEO Bobby Lee. During the game, both of Zhao’s teammates persuaded him to invest 10% of his net worth in Bitcoin; he allegedly performed his study and then sold his condo for Bitcoin.
He also worked at OKCoin and Blockchain.info before launching his own company.
Zhao and Chief Marketing Officer Yi He co-founded Bitcoin in 2017. Zhao and Yi have two children.
According to the source, the company’s name is a combination of binary and financial. Zhao is said to have his company’s emblem tattooed on his forearm.
Binance quickly evolved to become the largest cryptocurrency exchange in the world, making Zhao the richest person in the industry. He has also climbed the ranks of the world’s wealthiest throughout the years.
Zhao is the 68th richest person in the world, according to the Bloomberg Billionaire’s Index (BBI), with a fortune of $23.5 billion.
