CryptoQuant CEO Backs CZ as Binance Founder Nears Release

Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, has expressed strong backing for Binance founder Changpeng Zhao (CZ), as his release from detention approaches. Zhao, who was a major figure in the cryptocurrency space, is serving a four-month sentence after pleading guilty to violations of the US Bank Secrecy Act (BSA) in November 2023. His admission involved failing to prevent money laundering on Binance, resulting in a $4.3 billion penalty for Binance and a $50 million fine for Zhao. His imprisonment, which began in June 2024, is set to end soon.

In a recent statement, Young Ju acknowledged Zhao's mistakes but emphasized his significant contributions to the crypto world. According to Young Ju, the existence of Binance has been instrumental in creating the immense liquidity the cryptocurrency market currently enjoys. He believes that while CZ has faced criticism, his achievements outweigh his missteps.

Young Ju also noted that Zhao’s struggles are representative of the challenges faced by the crypto industry. He pointed out that the sector has seen massive capital inflows but has also been plagued by issues like hacks and frauds, which have hurt its growth. In his view, Zhao has become a scapegoat for some of the crypto industry's failings, but this should not overshadow his role in its development.

Once released from Lompoc II Correctional Center, Zhao is expected to stay on Binance’s board, but under the conditions of his plea deal, he will be barred from participating in day-to-day operations. Nevertheless, as a major shareholder, Zhao will retain influence over the company, including the power to nominate new board members and executives. Some legal experts suggest his plea deal doesn’t permanently prevent him from returning to a management position in the future. However, Zhao has expressed no desire to resume leadership at Binance and is instead interested in pursuing blockchain, AI, and biotechnology.

At present, the crypto market remains volatile. Bitcoin continues to hold a dominant position in the market. Despite recent declines, industry watchers are keeping an eye on CZ's next moves as his influence on Binance and the wider crypto space is likely to remain significant.