During his appearance at the DC Blockchain Summit in Washington DC, Binance founder Changpeng "CZ" Zhao delivered a dual message, critiquing the state of the US cryptocurrency market while forcefully denying recent allegations linking his exchange to Iran-related terrorism financing.
On the US Market: Zhao highlighted what he sees as a critical lack of competition and high transaction fees in the US crypto sector. He argued this environment restricts liquidity and forces American investors to trade at worse prices compared to global markets. "I didn’t expect the US to become so crypto-friendly so quickly two or three years ago," CZ stated, acknowledging a significant recent policy shift that has prompted entrepreneurs to return. He emphasized the US's inherent advantages, including Silicon Valley talent, a strong venture capital structure, and Wall Street's funding power.
However, CZ identified competition as the biggest deficiency. "Free markets and competition are the strongest protection mechanism for consumers," he said, noting this view was shared in meetings with many high-ranking US officials. He pointed out the "strange" dynamic where traditional market liquidity (stocks, futures) is centered in the US, but the opposite is true for crypto, with global liquidity concentrated elsewhere due to the current competitive landscape. Drawing a comparison, he noted that while Amazon offers the best prices in the US for e-commerce, American crypto users do not have access to the best global prices. CZ expressed confidence the problem is solvable and that the US, thanks to its strong institutional investor base, could eventually become the world's largest crypto liquidity center.
On Iran Allegations: In a separate part of his summit appearance, CZ vehemently denied allegations from a Wall Street Journal report that Binance enabled Iran-linked terrorism financing. "I have zero interest in doing that," Zhao declared, adding that he lives in the United Arab Emirates, a country facing threats from Iran, and had no business motive to support unlawful activity. He argued the alleged transactions generated no fees for Binance, stating, "There’s no benefit."
Zhao cited dismissed US civil lawsuits over similar allegations as part of his defense, calling the recent accusations "false and baseless information." He addressed Binance's 2023 settlement with US authorities over anti-money-laundering and sanctions violations, which led to his stepping down as CEO and serving a prison sentence (for which he later received a pardon). Binance has sued the Wall Street Journal over its report, which claimed the exchange fired compliance staff who flagged over $1 billion in suspicious transfers allegedly tied to Iranian networks. The company denies these claims, stating internal reviews found no evidence of direct transactions with Iranian entities or confirmed sanctions violations.
CZ confirmed he worked on a memoir during his prison term and plans to release it soon, though no specific date was provided. He reiterated he no longer manages Binance operations but continues to speak publicly about the company and his legal case.
