What Happened to Changpeng Zhao (CZ) and Binance Exchange?

Changpeng Zhao, widely known as CZ, rose to prominence as the founder and CEO of Binance, which quickly became the world's largest cryptocurrency exchange. His tenure, however, was marked by rapid growth alongside significant regulatory challenges globally. The most impactful of these came to a head in November 2023 when both Zhao and Binance pleaded guilty to federal charges in the United States. Zhao admitted to failing to maintain an effective anti-money laundering (AML) program, while Binance pleaded guilty to AML, unlicensed money transmitting, and sanctions violations. As part of a comprehensive settlement, Binance agreed to pay over $4.3 billion in fines and forfeitures, one of the largest corporate penalties in U.S. history, and committed to a three-year independent compliance monitorship.

Following his guilty plea, Zhao resigned as CEO of Binance, with Richard Teng, a former financial regulator, taking over the leadership role. In April 2024, Zhao was sentenced to four months in prison, a term significantly less than the three years prosecutors had sought. He completed his sentence by September 2024. A pivotal development occurred in October 2025 when former U.S. President Donald Trump granted Zhao a presidential pardon, a move that sparked controversy but legally cleared his record.

Despite the legal turmoil surrounding its founder, Binance has maintained its dominant position in the cryptocurrency market. As of early 2026, Binance continues to be the largest centralized exchange, commanding approximately 39.2% of the global market share. The exchange boasts over 300 million users worldwide and has made substantial investments in its compliance infrastructure, employing over 1,500 individuals in compliance-related roles. Binance's current CEO, Richard Teng, has emphasized a focus on regulatory compliance, with the company actively seeking licenses under the European Union's Markets in Crypto-Assets (MiCA) framework, notably selecting Greece as a base for its EU operations.

However, Binance's regulatory challenges are not entirely behind it. In February 2026, a group of eleven U.S. Senators called for a new federal investigation into Binance, citing recent reports alleging that the platform facilitated approximately $1.7 billion in transactions linked to sanctioned Iranian entities and potentially violated its 2023 settlement agreement. Binance has publicly denied these allegations, asserting its commitment to compliance and stating that it reports suspicious activity to authorities. Concurrently, a U.S. federal judge ruled in February 2026 that Binance customers could pursue lawsuits in court over alleged losses from unregistered tokens, rejecting the exchange's attempt to force arbitration for claims arising before February 20, 2019.

As for CZ, following his pardon, he has re-emerged in the public sphere, attending events like the World Economic Forum in Davos in January 2026. He has expressed optimism about a potential Bitcoin "super cycle" in 2026, driven by a more favorable regulatory environment in the U.S. and other countries. While he remains a major shareholder in Binance, with an estimated net worth of $78.8 billion as of February 2026, he has explicitly stated he has no intention of returning to an operational role at the exchange, preferring a role as an investor and informal advisor.