Changpeng Zhao ‘CZ’ reflects on FTX collapse anniversary

Former Binance CEO Changpeng Zhao, also known as CZ, recently addressed the second anniversary of the FTX collapse. In a social media post, Zhao commented on the sudden collapse of FTX, saying that the events seemed to have happened two decades ago.

The FTX exchange, which was at one time the world’s second-largest crypto exchange, went bankrupt, and the founder, Sam Bankman-Fried, is being charged with criminal activities and widespread losses for users.

definitely 20 years ago.

— CZ 🔶 BNB (@cz_binance) November 8, 2024

On the 8th of November, 2022, FTX went through a liquidity crunch that marked the beginning of its downfall. Binance had earlier tried to buy out the rival when Zhao signed a non-binding letter of intent to facilitate the rehabilitation of the failing exchange. But Binance pulled out of the deal within a week due to questions raised on the financial health of FTX.

Further investigations showed that Bankman-Fried had misused the customer’s funds, which culminated to fraud. He was handed a 25-year jail term earlier this year. However, Zhao also had his own problems, even though he was on a completely different side of the public conflict. In 2023, he had to resign from the post of Binance CEO and then was imprisoned in the USA for four months for banned actions, including anti-money laundering.

Zhao has recently noted that he should not be compared to Bankman-Fried, as his legal issues arise from compliance issues rather than fraud. As reported by Cryptopolitan, he stated, “comparing somebody who’s stealing money versus somebody who failed to register a company.”

Zhao rules out return to Binance leadership

While talking to the public for the first time after his release, Zhao stated that he did not plan to come back to Binance as its CEO. At the Binance Blockchain Week, he said he had no intention of returning to the leadership position, even if he could do so under the terms of his plea deal.

“I don’t have any need to go back. I don’t have any wish to go back,” Zhao stated.

He acknowledged the leniency of his sentence and said that he wanted to turn his attention to other activities. While Zhao does not currently hold any executive position, he is the largest shareholder of Binance. He confirmed that he still has the power to ask for information on the company’s operations, but he does not intend to interfere.

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