{"investigation":{"slug":"changpeng-zhao","entity_name":"Changpeng Zhao","trust_score":8,"severity_base":null,"score_modifier":-10,"confidence":0.95,"status":"published","content_type":"investigation","summary":"Changpeng Zhao (CZ), born February 10, 1977, is the founder and former CEO of Binance, the world's largest cryptocurrency exchange by trading volume. On November 21, 2023, Zhao pleaded guilty to a federal charge of failing to implement an effective anti-money laundering (AML) program under the Bank Secrecy Act, as part of a landmark $4.3 billion resolution between Binance and U.S. federal regulators. He was sentenced to four months in federal prison in April 2024, served that term, and was subsequently pardoned by President Donald Trump in October 2025.","sections":[{"content":"Changpeng Zhao was born on February 5, 1977, in Jiangsu, China, and emigrated to Canada with his family in the 1980s, growing up in Vancouver. He studied computer science at McGill University and subsequently worked as a software developer at the Tokyo Stock Exchange and Bloomberg Tradebook, gaining early expertise in financial trading systems. In 2005, Zhao founded Fusion Systems in Shanghai, developing high-frequency trading infrastructure for brokers. After being introduced to Bitcoin in 2013, Zhao liquidated personal real estate holdings to invest in cryptocurrency. He served as Chief Technology Officer at OKCoin before launching Binance in July 2017. Within 180 days of its founding, Binance became the world's largest cryptocurrency exchange by trading volume, a growth trajectory unprecedented in fintech history.","heading":"Background and Founding of Binance","sources":[{"url":"https://en.wikipedia.org/wiki/Changpeng_Zhao","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://cryptopotato.com/who-is-changpeng-zhao/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://beincrypto.com/people/changpeng-zhao/","name":"beincrypto.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On November 21, 2023, the U.S. Department of Justice announced that Changpeng Zhao pleaded guilty in the Western District of Washington (Seattle) to a single count of willfully failing to maintain an effective anti-money laundering program, a violation of the Bank Secrecy Act. This was described by the DOJ as the largest corporate guilty plea in U.S. history that simultaneously involved a guilty plea from the company's chief executive. As part of the resolution, Binance agreed to pay more than $4.3 billion in penalties, fines, and forfeitures across multiple federal agencies. Zhao personally agreed to pay a $50 million fine and resigned as CEO of Binance. The DOJ found that Binance never filed a single suspicious activity report (SAR) with FinCEN and failed to implement any meaningful know-your-customer (KYC) program for much of its operational history. Prosecutors alleged that Zhao and other executives actively instructed employees to ensure that compliance-subverting communications took place over messaging applications with automatic message destruction features.","heading":"DOJ Guilty Plea and $4.3 Billion Settlement","sources":[{"url":"https://www.justice.gov/archives/opa/pr/binance-and-ceo-plead-guilty-federal-charges-4b-resolution","name":"justice.gov","type":"other","credibility":3},{"url":"https://www.justice.gov/criminal/case/united-states-v-changpeng-zhao","name":"justice.gov","type":"other","credibility":3},{"url":"https://www.npr.org/2023/11/21/1214466415/binance-cz-changpeng-zhao-pleads-guilty-settlement-crypto-doj","name":"npr.org","type":"other","credibility":3}],"severity":"medium"},{"content":"The U.S. Treasury Department, through FinCEN and the Office of Foreign Assets Control (OFAC), announced concurrent settlements representing the largest in the history of those agencies. FinCEN assessed a civil money penalty of $3.4 billion against Binance and imposed a mandatory five-year compliance monitorship, requiring Binance's complete exit from the United States. OFAC assessed an additional penalty of $968 million. Regulators found that between August 2017 and October 2022, Binance executed more than 1.67 million virtual currency trades on its platform between U.S. persons and users in jurisdictions subject to comprehensive U.S. sanctions, including Iran, North Korea, Syria, and the Crimea region of Ukraine. Binance admitted that it engaged in approximately $898 million in trades between U.S. and Iranian users between January 2018 and May 2022 alone. Regulators further found that Binance failed to maintain programs to identify and report suspicious transactions associated with designated terrorist organizations, including Hamas's Al-Qassam Brigades, Palestinian Islamic Jihad, Al Qaeda, and ISIS. Binance executives, including Zhao, were found to have issued guidance to 'appear' compliant while knowingly permitting violative activity to continue, including advising VIP customers to use virtual private networks to circumvent Binance's own geofencing controls.","heading":"FinCEN and OFAC Sanctions Violations","sources":[{"url":"https://home.treasury.gov/news/press-releases/jy1925","name":"home.treasury.gov","type":"other","credibility":3},{"url":"https://ofac.treasury.gov/system/files/2023-11/20231121_binance.pdf","name":"ofac.treasury.gov","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/11/21/binance-to-make-complete-exit-from-us-pay-billions-to-fincen-ofac-on-top-of-doj-settlement","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Separately, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against Zhao and Binance in March 2023, charging willful evasion of the Commodity Exchange Act (CEA) and illegal operation of an unregistered digital asset derivatives exchange. The CFTC complaint alleged that Zhao was personally responsible for all major strategic decisions at Binance, including devising a scheme to instruct U.S.-based VIP customers to evade compliance controls. In the concurrent November 2023 settlement, Binance agreed to pay $2.7 billion in CFTC penalties ($1.35 billion disgorgement and $1.35 billion civil penalty), the largest fine in CFTC history. Zhao was personally assessed a $150 million civil monetary penalty by the CFTC. The settlement found Zhao liable because he 'owned and controlled the opaque maze of entities that operated the Binance trading platform' and bore personal responsibility for strategic decisions regarding illegal derivatives offerings. Binance had collected approximately $1.35 billion in trading fees from U.S. customers during the period of these violations.","heading":"CFTC Charges and Settlement","sources":[{"url":"https://www.cftc.gov/PressRoom/PressReleases/8825-23","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.cftc.gov/PressRoom/PressReleases/8680-23","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/11/21/binance-changpeng-cz-zhao-to-pay-285b-fine-in-cftc-settlement","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On April 30, 2024, U.S. District Judge Richard Jones sentenced Zhao to four months in federal prison, significantly below the three-year term requested by federal prosecutors. Zhao reported to a federal prison facility in Lompoc, California in early June 2024. He was released from custody on September 27, 2024, two days ahead of his scheduled release date. At the time of his incarceration, press outlets including Fortune described Zhao as potentially the wealthiest individual ever held in U.S. federal detention, given his estimated net worth in excess of $60 billion. Under the terms of his criminal settlement, Zhao was required to step down as CEO of Binance and abstain from day-to-day operational involvement with the company. During and after his incarceration, Zhao announced philanthropic initiatives including Giggle Academy, an online educational platform, and took on an advisory role with YZi Labs, the venture capital arm formerly known as Binance Labs.","heading":"Sentencing and Incarceration","sources":[{"url":"https://www.cnbc.com/2024/04/30/binance-founder-changpeng-zhao-cz-sentenced-to-four-months-in-prison-.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://fortune.com/crypto/2024/04/30/binance-founder-changpeng-cz-zhao-sentenced-to-4-months-in-prison-will-enter-as-countrys-richest-inmate/","name":"fortune.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2024/06/03/former-binance-ceo-cz-begins-4-month-prison-sentence-in-california","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2024/09/16/cz-set-to-be-released-from-prison-on-september-29","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On October 23, 2025, President Donald Trump issued a presidential pardon to Changpeng Zhao, approximately two years after Zhao's guilty plea. Trump stated publicly that Zhao was recommended by 'a lot of people' and characterized the prosecution as 'a Biden witch hunt.' The pardon generated significant bipartisan controversy. In a subsequent television interview, Trump stated he did not know who Zhao was, a claim that drew scrutiny given reporting about connections between the Trump family's crypto ventures and Binance. The Wall Street Journal had reported that the Trump family's crypto venture, which generated approximately $4.5 billion since the 2024 election, benefited from a partnership with a trading platform quietly administered by Binance. The pardon came approximately one month before a new civil lawsuit against Binance was filed by victims and families of the October 7, 2023 Hamas terrorist attack.","heading":"Presidential Pardon (October 2025)","sources":[{"url":"https://www.cnbc.com/2025/10/23/trump-pardons-binance-founder-cz-zhao.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.axios.com/2025/11/03/trump-binance-founder-pardon-60-minutes-changpeng-zhao","name":"axios.com","type":"other","credibility":3},{"url":"https://www.factcheck.org/2025/11/addressing-trumps-claims-about-the-pardon-of-binance-founder/","name":"factcheck.org","type":"other","credibility":3},{"url":"https://time.com/7328278/what-to-know-about-trumps-pardon-of-binances-founder/","name":"time.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In November 2025, more than 300 victims and family members of the October 7, 2023 Hamas terrorist attack filed suit against Binance, Changpeng Zhao, and senior Binance executive Guangying Chen in U.S. District Court in North Dakota. The complaint, spanning 284 pages, was brought under the Justice Against Sponsors of Terrorism Act provision of the Anti-Terrorism Act and sought treble damages. Plaintiffs alleged that Binance enabled more than $1 billion in transactions by Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran's Islamic Revolutionary Guard Corps, and that the company 'intentionally structured itself as a refuge for illicit activity' while knowing that accounts controlled by designated terrorist organizations were active on its platform. The lawsuit cited specific digital wallet addresses alleged to be linked to Hamas and Hezbollah. The filing came one month after Trump's pardon of Zhao and drew renewed attention to the adequacy of Binance's compliance remediation under its monitorship agreement.","heading":"Ongoing Civil Litigation: October 7 Victims","sources":[{"url":"https://www.cnbc.com/2025/11/25/binance-trump-crypto-lawsuit-pardon.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2025-11-24/binance-faces-lawsuit-by-hamas-victims-under-anti-terrorism-law","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2025/11/25/oct-7-hamas-attack-victims-sue-binance-for-damages","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Zhao's estimated net worth has fluctuated substantially with cryptocurrency market conditions. As of early 2026, Forbes estimated his net worth at approximately $111 billion, ranking him as the richest Canadian and among the top 20 wealthiest individuals globally. His wealth is primarily attributable to his retained stake in Binance, estimated at approximately 90 percent of the exchange. Zhao has publicly disputed the precision of such estimates, describing rich lists as 'guess a number lists.' The $50 million personal fine paid to the DOJ and $150 million CFTC civil penalty represent a very small fraction of his estimated fortune. As of 2026, a separate DOJ investigation into Iranian sanctions evasion through Binance accounts remained ongoing, with Fortune reporting in March 2026 that internal investigators identified accounts transferring more than $1 billion to Iran-linked entities.","heading":"Net Worth and Financial Position","sources":[{"url":"https://www.datawallet.com/crypto/cz-net-worth","name":"datawallet.com","type":"other","credibility":3},{"url":"https://fortune.com/2026/03/12/binance-accounts-iranian-entities-sanctions-chinese-vips-gold-smuggler/","name":"fortune.com","type":"other","credibility":3},{"url":"https://coinpedia.org/news/binances-cz-net-worth-jumps-to-110b-in-forbes-richest-list/","name":"coinpedia.org","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"1977-02-05","event":"Changpeng Zhao born in Jiangsu, China","source":""},{"date":"2017-07","event":"Binance launched; becomes world's largest crypto exchange by trading volume within 180 days","source":"","date_original":"2017-07-01"},{"date":"2023-03-27","event":"CFTC files civil enforcement action against Binance and Zhao for willful evasion of the Commodity Exchange Act and illegal derivatives exchange operation","source":""},{"date":"2023-11-21","event":"Zhao pleads guilty in Seattle federal court to Bank Secrecy Act violation; Binance settles with DOJ, FinCEN, OFAC, and CFTC for combined penalties exceeding $4.3 billion; Zhao resigns as Binance CEO","source":""},{"date":"2024-04-30","event":"U.S. District Judge Richard Jones sentences Zhao to four months in federal prison, below the three-year term sought by prosecutors; personal fine of $50 million","source":""},{"date":"2024-06-03","event":"Zhao reports to federal prison facility in Lompoc, California","source":""},{"date":"2024-09-27","event":"Zhao released from federal custody two days ahead of scheduled release date","source":""},{"date":"2025-10-23","event":"President Donald Trump issues presidential pardon to Changpeng Zhao, generating bipartisan criticism and scrutiny over Trump family crypto business ties to Binance","source":""},{"date":"2025-11-24","event":"More than 300 October 7 attack victims and family members file suit against Binance and Zhao under the Anti-Terrorism Act seeking treble damages, alleging over $1 billion in Hamas-linked transactions","source":""},{"date":"2026-03-12","event":"Fortune reports ongoing DOJ investigation into Iranian sanctions evasion through Binance VIP accounts, with internal investigators identifying transfers exceeding $1 billion to Iran-linked entities","source":""}],"sources_used":[{"url":"https://en.wikipedia.org/wiki/Changpeng_Zhao","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://cryptopotato.com/who-is-changpeng-zhao/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://beincrypto.com/people/changpeng-zhao/","name":"beincrypto.com","type":"other","credibility":3},{"url":"https://www.justice.gov/archives/opa/pr/binance-and-ceo-plead-guilty-federal-charges-4b-resolution","name":"justice.gov","type":"other","credibility":3},{"url":"https://www.justice.gov/criminal/case/united-states-v-changpeng-zhao","name":"justice.gov","type":"other","credibility":3},{"url":"https://www.npr.org/2023/11/21/1214466415/binance-cz-changpeng-zhao-pleads-guilty-settlement-crypto-doj","name":"npr.org","type":"other","credibility":3},{"url":"https://home.treasury.gov/news/press-releases/jy1925","name":"home.treasury.gov","type":"other","credibility":3},{"url":"https://ofac.treasury.gov/system/files/2023-11/20231121_binance.pdf","name":"ofac.treasury.gov","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/11/21/binance-to-make-complete-exit-from-us-pay-billions-to-fincen-ofac-on-top-of-doj-settlement","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cftc.gov/PressRoom/PressReleases/8825-23","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.cftc.gov/PressRoom/PressReleases/8680-23","name":"cftc.gov","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/11/21/binance-changpeng-cz-zhao-to-pay-285b-fine-in-cftc-settlement","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2024/04/30/binance-founder-changpeng-zhao-cz-sentenced-to-four-months-in-prison-.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://fortune.com/crypto/2024/04/30/binance-founder-changpeng-cz-zhao-sentenced-to-4-months-in-prison-will-enter-as-countrys-richest-inmate/","name":"fortune.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2024/06/03/former-binance-ceo-cz-begins-4-month-prison-sentence-in-california","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2024/09/16/cz-set-to-be-released-from-prison-on-september-29","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2025/10/23/trump-pardons-binance-founder-cz-zhao.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.axios.com/2025/11/03/trump-binance-founder-pardon-60-minutes-changpeng-zhao","name":"axios.com","type":"other","credibility":3},{"url":"https://www.factcheck.org/2025/11/addressing-trumps-claims-about-the-pardon-of-binance-founder/","name":"factcheck.org","type":"other","credibility":3},{"url":"https://time.com/7328278/what-to-know-about-trumps-pardon-of-binances-founder/","name":"time.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2025/11/25/binance-trump-crypto-lawsuit-pardon.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2025-11-24/binance-faces-lawsuit-by-hamas-victims-under-anti-terrorism-law","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2025/11/25/oct-7-hamas-attack-victims-sue-binance-for-damages","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.datawallet.com/crypto/cz-net-worth","name":"datawallet.com","type":"other","credibility":3},{"url":"https://fortune.com/2026/03/12/binance-accounts-iranian-entities-sanctions-chinese-vips-gold-smuggler/","name":"fortune.com","type":"other","credibility":3},{"url":"https://coinpedia.org/news/binances-cz-net-worth-jumps-to-110b-in-forbes-richest-list/","name":"coinpedia.org","type":"other","credibility":3}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-30T18:32:17.853905+00:00","updated_at":"2026-08-29T01:33:56.023+00:00"}}