Changpeng Zhao (CZ): Founder of Binance and the Rise of a Crypto Empire

Binance’s meteoric rise from a startup in 2017 to a global crypto powerhouse is inseparable from the vision and execution of its founder, Changpeng Zhao (CZ). Equal parts engineer, entrepreneur, and community builder, CZ helped shape how millions of users trade, store, and interact with digital assets. Today, the Binance story—and CZ’s legacy—continues to influence the broader trajectory of crypto adoption, regulation, and user security.

From Engineer to Exchange Builder

CZ began his career as a software developer with stints in high‑frequency trading and fintech, experiences that deeply informed Binance’s early focus on speed, liquidity, and global accessibility. Within months of launch, Binance became the world’s largest crypto exchange by volume, thanks to a mixture of aggressive market expansion, frequent listings, and a retail‑friendly product strategy.

That strategy later extended to derivatives, staking, and fiat gateways—plus an ecosystem approach built around BNB and BNB Chain for developers and Web3 applications. Binance’s Proof of Reserves framework and the Secure Asset Fund for Users (SAFU) were introduced to improve transparency and user protection during volatile market cycles, aligning with best practices for centralized platforms. You can explore Binance’s PoR methodology and published asset balances on their dedicated page, and learn more about SAFU’s emergency insurance fund initiative on Binance’s site. See Binance’s Proof of Reserves and SAFU overview here: Proof of Reserves and SAFU.

The Compliance Pivot

As regulators sharpened their focus on crypto markets, Binance faced extensive scrutiny across multiple jurisdictions, culminating in a landmark U.S. settlement in November 2023. CZ and Binance pleaded guilty to violations of U.S. laws, agreed to significant compliance undertakings, and paid multi‑billion‑dollar penalties. The official U.S. Department of Justice announcement is here: DOJ press release.

Following the plea, CZ stepped down as CEO and was later sentenced to four months in prison in April 2024, marking a turning point for both the founder and the firm’s governance model. Coverage of the sentencing is available via CNBC, while news of leadership transition—and Richard Teng’s appointment as CEO—was widely reported, including by Reuters.

In 2024, U.S. authorities also appointed an independent compliance monitor to oversee Binance’s remediation and controls, a step aimed at strengthening AML/KYC standards and corporate governance. For background on the monitorship, see Reuters’ coverage.

2025: Binance’s Scale Meets a New Market Regime

Entering 2025, Binance continues to lead global crypto trading by volume, supported by deep liquidity across spot and derivatives markets. Public rankings of exchange activity are regularly updated on CoinMarketCap’s exchange leaderboard.

At the same time, crypto’s regulatory environment is maturing. In the EU, the Markets in Crypto‑Assets (MiCA) framework is phasing in, setting harmonized requirements for exchanges, stablecoins, and service providers. MiCA details are available via the European Parliament and the European Commission. Globally, the FATF Travel Rule is also being implemented more consistently to curb illicit finance, requiring VASPs to share sender and recipient information. See the FATF’s guidance on Recommendation 16 (Travel Rule).

Market structure has evolved as well. U.S. spot Bitcoin ETFs went live in January 2024, bringing new institutional demand and clearer custody rails; later in 2024, the SEC approved key rule changes paving the way for Ether ETFs. For background on ETFs and their impact on liquidity and price discovery, see CNBC’s coverage of Bitcoin ETFs and Ether ETFs.

CZ Beyond the Exchange

Post‑sentencing, CZ has emphasized education and philanthropy, notably via the Giggle Academy initiative aimed at free, tech‑driven education for children worldwide. Learn more at Giggle Academy. His public statements increasingly focus on open, verifiable systems and the long‑term social impact of blockchain technology—a reminder that crypto’s core value proposition is not just trading, but building equitable digital infrastructure.

Lessons for Users: Centralized Scale vs. Self‑Custody

Binance’s scale delivers liquidity, on‑ramps, and tools that many users need. Yet exchange events since 2022 have reinforced a foundational principle: self‑custody is essential for resilience. Proof of Reserves reduces opacity but does not eliminate counterparty risk. Regulatory clarity improves safety but cannot replace private key ownership.

Best practices for everyday users include:

• Use exchanges for fiat gateways and liquidity, but withdraw long‑term holdings to self‑custody.
• Verify on‑chain balances where possible, and diversify across storage methods.
• Understand KYC/AML obligations and how they affect your privacy and compliance stance.

Conclusion

CZ’s journey—from building Binance at breakneck speed to navigating historic enforcement actions—mirrors crypto’s transition from frontier finance to a more regulated, institutionally integrated market. As ETFs expand access and frameworks like MiCA and the FATF Travel Rule reshape compliance, users should balance convenience with control: trade where liquidity is deepest, but custody where security is highest. Whether you are a market‑maker or a long‑term allocator, the lesson is durable—own your keys, understand the rules, and build for the next decade of crypto, not just the next cycle.