What is the ‘Teflon’ man of crypto up to?
Since founded Binance in Shanghai in 2017, his dreams have also grown. In fact, that year, “We want to capture the entire market!” said. The CEO did not give up on this belief while establishing the crypto exchange. Last year he felt that this big goal was almost within his grasp. He would have a seat at the top of the financial world… Until that case… Question on mind: Is the end of the crypto king?
A few years ago, he was just a middle-class Chinese. Today, he owns Binance, one of the world’s largest cryptocurrency exchanges. Changpeng Zhao, a Chinese-Canadian businessman known as ‘CZ’, is considered a pioneering entrepreneur in the cryptocurrency industry. Born in Jiangsu, China in 1977, Zhao immigrated to Canada with his family at the age of 12 after his father was accused of being pro-bourgeois. While in middle school, he placed tenth in Canada’s national math competition and later studied computer science at McGill University. In 2015, convinced that ‘what the internet does to information, bitcoin will do to finance’, he founded Bijie Tech, which offers software to crypto exchanges in Shanghai. Four years later, China closed all exchanges in the country. Bijie Tech also shut down shortly after.
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Became the world’s largest crypto exchange
Traveling the world in search of success, Zhao worked in Tokyo and New York before moving to Shanghai, where he embraced crypto and founded Binance in 2017. Binance has grown at an incredible rate. According to research firm CCData, the company has become the world’s largest crypto exchange in six months and currently handles around 60 percent of global crypto trading volume. However, he has repeatedly refused to reveal where his trading platform is. According to a Reuters report last year, Zhao has kept Binance firmly in check since the company’s early days as a strong leader with an emphasis on privacy and focused on market dominance. They chose to appoint relatives, many of whom had worked or studied in China, to senior positions. Co-founder Yi He is one of them, and currently Binance has 7.
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SEC sues for ‘violation of the law’
But last June, the U.S. Securities and ExchangeCommission (SEC) sued Binance, the world’s largest cryptocurrency exchange, and its founder, Changpeng Zhao, for violating federal securities laws. The SEC alleges that Binance misrepresented trade controls and violated investor protection rules by selling unregistered securities, among other violations. Zhao and Binance, Binance. Arguing that it secretly controlled the operations of the US platform behind the scenes, the SEC also alleged that Binance mixed billions of dollars with customer funds and secretly sent them to a separate company called Merit Peak Limited, which is controlled by Binance founder Zhao. SEC Chairman Gary Gensler said in a statement, “Through the thirteen charges, the Zhao and Binance entities’ conflict of interest, We claim failure to explain and a calculated violation of the law. The public should refrain from investing their hard-earned assets on these or illegal platforms” Binance, as a company, did not comment on the subject. As always, Binance founder and CEO Zhao remained calm and said on Twitter that his team will look into the complaint. A few days ago, he sought court protection for his SEC case. Making a statement after the protection application was made, Binance said that the SEC’s requests for the company’s communications were too broad and unnecessarily burdensome. It would be wrong to say that this lawsuit does not threaten Zhao’s empire, which has dominated the crypto industry for years. According to industry experts, Zhao’s biggest mistake is being too ambitious. As a result of this ambition, Zhao’s rhetoric is clear: “We intend to strongly defend our platform. Since Binance is not a US exchange, the SEC’s access is limited. Claims that user assets are at risk are completely false.”
“We want to capture the entire market”
Since Zhao founded Binance in Shanghai in 2017, his dreams have also grown. In fact, that year, in a company chat group, “We want to take over the whole market!” said. The 47-year-old CEO never gave up on this belief while establishing the crypto exchange. In the past year, he felt that this grand goal was almost within his grasp. The seat at the top of the financial world would be His. Leaving the company’s fifth year behind, he commented: “The idea that a five-year start-up could mature and operate at the same level as a 200-year-old financial institution was once impossible to understand. But we are almost at that point today.”
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Are dreams too far away now?
The lawsuit filed by the SEC, on the other hand, shows that Zhao has drifted away from his dreams. Although Binance says crypto has developed ‘the best security and compliance team’, according to the SEC, Zhao and Binance ‘consciously chose to evade US law’ in order to ‘maximize their own profits’. SEC Chairman Gary Gensler’s comments were also harsh: “The Zhao and Binance entities have entered an extensive web of deception, conflicts of interest, lack of disclosure, and calculated avoidance of the law.” Although Zhao refuses to reveal details about the nature of his business, he is a trusted name within the industry. He insists on taking a free and even independent stance. Although it has offices in Paris and Dubai, there is still no clear answer to the question of where Binance is headquartered. Zhao told Fortune last week, “Crypto has different rules in different places. That’s why we don’t want to bend the rules or avoid them, we just want to find more convenient places.” Meanwhile, there is no clear information about exactly where Zhao lives. Maybe that’s why they call him the ‘teflon man of crypto’. Because it is resistant to all kinds of lawsuits, accusations…
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