CZ's Binance Role, FTX Fallout, and Trump-Linked Investment Under Scrutiny

Changpeng Zhao, known as CZ, remains the majority shareholder of Binance despite serving a four-month U.S. prison term and receiving a presidential pardon in October 2025. A recent New York Times profile explores his role in FTX's collapse, a controversial $2 billion investment involving Emirati fund MGX and Trump-linked World Liberty Financial, and the regulatory scrutiny these ties have attracted.

In November 2022, Binance announced plans to sell roughly $500 million in FTT tokens following CoinDesk's questions about FTX's finances. This announcement triggered a customer rush, which Zhao denies was intended to bring down FTX. The fallout from this event has raised questions about the influence of centralized exchanges (CEXs) on crypto markets.

The $2 billion investment involving MGX and World Liberty Financial, structured as USD1, has drawn significant scrutiny due to its ties to the Trump family. This deal has heightened regulatory and political attention on crypto fundraising, token governance, and security, potentially leading to increased oversight in these areas.