The Commodity Futures and Trading Commission filed a complaint against cryptocurrency exchange Binance, its co-founder Changpeng Zhao, and its former chief compliance officer Samuel Lim, according to a filing in Illinois federal court on Monday. The CFT claimed that Binance actively solicited U.S. users and undermined the exchange’s own “ineffective compliance program.”
Days before the CFTC complaint was filed, CNBC reported on how Binance workers used some of the same methods the CFTC claims Binance used to entice U.S. users to the exchange in China to circumvent the compliance controls of the exchange.
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Here’s all you need to know about Changpeng Zhao:
Changpeng Zhao’s age-
Zhao was born on February 5, 1977, in China’s Jiangsu region. He is 46 years old.
Changpeng Zhao’s net worth-
He is the 33rd richest person in the world, according to the Bloomberg Billionaires Index, with a total net worth of about $30 billion. (as of 2023).
Zhao, also known as CZ, is one of the most prominent figures in cryptocurrency and the wealthiest person in the business.
However, the crypto winter has taken its toll on the business as a whole, and Zhao is no exception. His current estimated net worth is a far cry from his peak personal fortune. According to the Bloomberg Billionaires Index, his net worth peaked at US$95.9 billion early this year.
Changpeng Zhao’s relationship-
According to a Reuters investigation into Binance, Zhao had a “several years” romantic relationship with former Chinese travel television program host and Binance co-founder Yi He. She subsequently had a son in the United States.
Changpeng Zhao’s career-
In 2005, Zhao relocated to Shanghai to establish Fusion Systems, a technology startup renowned for “some of the fastest automated high-frequency trading platforms and systems for stockbrokers.”
Zhao was a part of the team that created Blockchain.info in 2013, and he was also the Chief Technology Officer of OKCoin at the time.
Following its July 2017 launch, the Binance cryptocurrency exchange was able to collect $15 million in an initial coin offering, and trading began eleven days later. Zhao grew Binance into the world’s biggest cryptocurrency exchange by trading volume in less than eight months. (as of April 2018). In 2017, Zhao also introduced Binance Coin, a utility token that provides its owners with various benefits such as reduced trading fees.
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Binance debuted Binance Smart Chain, an Ethereum competitor with smart contract functionality, in April 2019. Forbes ranked him third on their ranking of “The Richest People In Cryptocurrency” in February 2018.
Binance.US, Zhao’s U.S. affiliate, was established in 2019.
Binance has withdrawn its proposal to operate a Singapore-based cryptocurrency exchange in 2021.
The Commodity Futures Trading Commission (CFTC) sued Binance and Zhao in the United States District Court for the Northern District of Illinois on March 27, 2023, for allegedly violating derivatives regulations.
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Changpeng Zhao’s family-
His parents were both Chinese teachers. Before being labeled a “pro-bourgeois intellect” and exiled to rural areas soon after Zhao’s birth, his father worked as a university teacher. Zhao supported his family during his adolescence by working a variety of low service jobs, including as a fast-food clerk at a McDonald’s restaurant.
