Changpeng Zhao, founder and former CEO of Binance, the world’s largest cryptocurrency exchange, has publicly addressed the idea of a potential pardon. The suggestion came from John Lilic of The Telos Foundation, who proposed that U.S. President-elect Donald Trump intervene to reinstate Zhao as CEO. In response, Zhao clarified that he had no desire to return to Binance’s leadership but expressed openness to a legal reprieve.
This statement follows Zhao’s four-month prison sentence, part of a settlement with U.S. regulators in November 2023. The Department of Justice accused Binance of violating anti-money laundering (AML) laws and facilitating illicit transactions.
Despite stepping down as CEO, Zhao has shown interest in staying involved with the crypto sector, though not in an executive role.
U.S. Regulators Oversee Binance’s Compliance Improvements
Binance and Zhao settled with U.S. regulators for a historic $4.3 Billion in November 2023. The exchange agreed to settle accusations that it broke U.S. laws by failing to register as a money transmitter. Additionally, Binance was accused of helping nearly $900 Million in transactions between U.S. customers and sanctioned entities, including Iran.
Zhao admitted to failing to implement an effective AML program at Binance as part of the agreement. He was imprisoned for four months and forced to step down as CEO. Binance has assigned Richard Teng, who replaced Zhao as CEO, to oversee its operations as the company deals with its compliance failures.
Aside from the prison sentence, Binance will also be on a three-year monitoring program. U.S. regulators will oversee the company’s work on boosting its compliance framework. Treasury Secretary Janet Yellen said holding major crypto platforms accountable for financial system integrity is important.
Changpeng Zhao Shifts Focus to Mentoring Future Entrepreneurs
Following his resignation as CEO, he took a back seat at Binance. He repeatedly emphasized wanting to rest after heading the business for six years. He has repeatedly made it clear that he has no desire to return to running Binance as CEO or any other startup.
Even though Zhao is taking a step back from day-to-day operational leadership, he hasn’t shied away from mentoring aspiring entrepreneurs. “I can at least tell them what not to do,” he tweeted. He has also proven to continue supporting the blockchain and crypto industry, seeking to promote innovation.
Zhao has also launched an educational initiative, “Giggle Academy,” designed to teach people about the crypto space. There will be resources to educate people, especially those in underdeveloped countries. This is all because of his passion for blockchain and his resolve to impact the industry.
Changpeng Zhao distanced himself from the idea of returning to Binance and followed John Lilic’s suggestion by considering the possibility of a legal reprieve. However, he probably underplays his interest in not running for a leadership position, and would only be open to it if there was a legal resolution.
That statement showed a change in his activity from operational management to mentoring and supporting the following era of crypto entrepreneurs.
Despite publicly distancing himself from the CEO role, Zhao is open to working in different sectors in the future, including blockchain, decentralized finance (DeFi), and artificial intelligence.
