Binance's CZ Denies FTX Destruction Intent Amid Political and Legal Scrutiny
Changpeng Zhao, commonly known as CZ, remains a dominant figure in the crypto world despite legal troubles and political scrutiny. A recent profile by The New York Times explores his role in the FTX collapse, a $2 billion investment deal, and his ties to former President Donald Trump. In November 2022, Binance announced plans to sell $500 million in FTT tokens, which sparked a customer exodus from FTX. CZ denied intending to destroy FTX, stating that Binance lost $500 million in the process. FTX later collapsed due to fraud committed by its founder, Sam Bankman-Fried.
In early 2025, Emirati investment firm MGX agreed to invest $2 billion in Binance using USD1, a stablecoin issued by World Liberty Financial, a company founded by Trump and his sons. CZ claimed he preferred Bitcoin, but the Emiratis favored stablecoins due to price volatility. MGX asserted it chose USD1 for business suitability, while The Wall Street Journal reported Binance specifically requested it. CZ disputed this account. Democratic lawmakers criticized the arrangement, with Senator Richard Blumenthal suggesting it aimed to gain political favor. CZ denied any wrongdoing.
In October 2025, Trump pardoned CZ following his guilty plea for violating an anti-money-laundering law. The Times reported that Binance paid $2.1 million to a lobbying firm for services that included executive relief. World Liberty denied involvement in pardon decisions. Critics linked the business relationship and clemency, but no quid pro quo was established. Despite Binance’s plea agreement prohibiting him from managing the company, CZ retains majority ownership, with He Yi serving as co-chief executive.
Binance also faced scrutiny over its handling of funds linked to Iran. Four compliance officials were fired or suspended after raising concerns about nearly $2 billion in transactions tied to Iranian entities. Binance disputed their findings, stating the officials were not dismissed for raising concerns. The Justice Department later identified two Chinese firms using Binance to launder proceeds from Iranian oil sales but did not charge the exchange.