In his first major interview since being released from prison, Binance founder Changpeng "CZ" Zhao delivered a scathing critique of U.S. regulatory policy, framed his legal saga as a targeted precedent, and revealed new details about the collapse of FTX. The wide-ranging discussion with FOX Business's Charlie Gasparino marked a significant public return for the former exchange CEO.
Zhao characterized the regulatory environment under President Joe Biden as "an open war" against the cryptocurrency industry. He argued that he and Binance were specifically targeted, stating his belief that the U.S. administration aimed to create a precedent-setting case. This follows Binance's historic $4.3 billion settlement with U.S. authorities and Zhao's own guilty plea to violating the Bank Secrecy Act, for which he served a four-month prison sentence. Zhao clarified that accusations often portrayed as "money laundering" were inaccurate.
The interview also revisited the downfall of FTX and its founder, Sam Bankman-Fried (SBF). Zhao disclosed that during FTX's collapse, SBF requested "billions of dollars" in financing from him. However, Zhao found these requests lacked clarity and contained significant inconsistencies, leading him to suggest the events could be considered "fraud."
Zhao discussed his new book, Freedom of Money, revealing he wrote a significant portion of it while incarcerated. He described drafting content by quickly typing on a computer terminal with limited access, a process he said led to a more direct and unfiltered writing style. The book delves into company history, with a notable focus on former Binance CFO Wei Zhou, whom Zhao portrays as a disloyal subordinate and antagonist.
Zhao also addressed rumors of a pardon from Donald Trump, firmly denying any business or investment relationship with Trump or his family. On the future of crypto, he emphasized the transformative potential of blockchain technology, acknowledging that widespread use in daily payments remains limited but suggesting developments in this area are imminent.
