Changpeng ‘CZ’ Zhao, the founder and former CEO of Binance, recently addressed rumors that he secretly works for the US Federal Reserve and never served jail time. The speculation was sparked by a Chinese influencer during an X Spaces talk that drew thousands of listeners. The influencer alleged that CZ’s legal troubles in the US were staged and that he acts as a covert operative for the Federal Reserve. The Binance founder took to his X account to debunk the claims, sharing that he did serve a four-month prison sentence from May to September 2024 for violations related to anti-money laundering laws.
Before the Federal Reserve rumor, CZ also addressed another circulating claim that he collaborated with the US Department of Justice to target fellow crypto figure Justin Sun. A Wall Street Journal report suggested that Binance executives were working with the DOJ to obtain evidence against Sun while negotiating a regulatory return to the US. CZ refuted the allegations, describing them as a smear campaign and accusing the media outlet of spreading false information. Justin Sun also defended CZ, stating that he was unaware of the rumors. CZ brushed off the rumors as attempts by influencers to gain followers, with one follower humorously suggesting that if CZ worked for the Federal Reserve, Bitcoin’s price would be at an all-time high.
After leaving prison and stepping down from his Binance role, CZ has shifted his focus to new ventures. He now plays a key leadership role in YZi Labs, the rebranded Binance Labs. Additionally, he has been working on Giggle Academy, an educational platform for students. The project was announced before his prison sentence, with the app for younger children launching in December 2024. CZ has expressed his commitment to dedicating the coming years to this educational initiative. This shift demonstrates his continued involvement in the blockchain and cryptocurrency space, albeit in a different capacity.
As a blockchain enthusiast and journalist, Benjamin Godfrey relishes writing about real-life applications of blockchain technology and innovations to drive widespread integration. His interest in educating people about cryptocurrencies inspires his contributions to various blockchain-based media. He is known for his reporting on the emerging technology’s practical applications and impact on different industries. Ben’s passion for sports and agriculture also shines through in his work, showcasing a well-rounded perspective on various topics. Follow Benjamin on X and LinkedIn to stay updated on his insightful analysis and industry commentary.
It’s essential to note that the views expressed in the article are the author’s personal opinions and may be influenced by market conditions. Readers are encouraged to conduct their own research before making investment decisions in cryptocurrencies. The author and publication do not assume responsibility for any personal financial losses that may occur. This disclaimer underscores the importance of due diligence and informed decision-making when navigating the volatile and evolving crypto landscape. As the industry continues to mature, staying informed and educated is crucial for navigating potential risks and unlocking opportunities in the digital asset space.
