Original Title: The King of Crypto: CZ's Rapid Rise

Original Source: Anthony Pompliano

Original Translation: TechFlow from DeepTide

· Guest: Changpeng Zhao, Binance Founder

· Host: Anthony Pompliano

· Air Date: July 2, 2025

Key Points Summary

CZ is the founder of Binance and is also one of the most successful entrepreneurs of our time. In this interview, we delve into his life journey—from buying Bitcoin for the first time in 2013 to navigating the volatility of the crypto market and his vision for the future. The interview covers his childhood experiences, career path, the story behind founding Binance, and the various challenges he has faced in the crypto industry.

Highlights Summary

· I missed the internet wave, but when Bitcoin emerged in 2013, I was already 35 years old. I realized I couldn't miss this opportunity anymore, so I quit my job, sold my house, and fully immersed myself in the crypto space.

· The traditional financial markets will also enter the cryptocurrency space on a larger scale.

· Bitcoin, blockchain, and artificial intelligence are the three core technologies I encountered in my adult life.

· What truly limits me is not money but other factors like talent, team, health, and time; these are the limited resources. So now, I focus more on these aspects.

· I have always felt that I am not fundamentally different from others, so I have never had a sense of superiority or inferiority. I hope I won't be too arrogant but also not too pessimistic.

· I believe the U.S. has the potential to become the global center for cryptocurrency, and we hope to contribute to that. It's like being in a simulation environment, and when faced with challenges, we just need to do our best and persevere.

· Establishing a trading platform is not actually a new idea; almost everyone I've met in the crypto industry has considered starting a trading platform. I have always believed that the idea itself is not the most important; execution is the key.

· To build a successful company, you must have a strong belief and a clear worldview; you need to recognize the potential of certain trends earlier than others.

· Binance's first-year profit was approximately one billion U.S. dollars, possibly making it the first company to achieve a one billion dollar profit from a startup.

· We hold the profit in the form of cryptocurrency and have not converted it to fiat currency because we believe in the long-term value of cryptocurrency.

· When I look at my personal wallet, I have never cashed out these assets; it feels more like virtual digits rather than actual wealth. This mindset helps me focus on long-term development rather than being disturbed by short-term fluctuations.

· Although I could choose to live in a country without an extradition treaty, leading a relatively peaceful life, that is not the lifestyle I want. I do not want to live a life of evasion and hiding.

· I have a certain level of trust in the U.S. judicial system. Despite political pressure on the crypto industry, I believe the U.S. justice system is still relatively fair.

The Role of Bitcoin and Cryptocurrency in the World

Anthony: CZ, as one of the world's most influential entrepreneurs, you have not only achieved success in your personal life but have also led Binance to become a leading company in the crypto industry. However, I think many people outside the crypto industry do not understand how large companies like Binance have grown and may not fully grasp the achievements you have made.

For those who reach the pinnacle of their chosen field, their worldview is often very interesting. Considering that you have built a company in the crypto industry, let's talk about Bitcoin and cryptocurrency. What do you think is their role in the world? How will their importance continue to grow in the future?

CZ: Of course. I think you brought up a key point. Over the years, I've learned that to build a successful company, you must have unwavering beliefs and a clear worldview. You need to realize the potential of certain trends earlier than others. I think we were lucky to have early exposure to Bitcoin. This is our third podcast recording. In 2013 and 2014, when I first encountered Bitcoin, I thought, "This technology is amazing; it will be a bigger change than the internet." I missed the internet wave, but when Bitcoin appeared in 2013, I was already 35 years old. I realized I couldn't miss this opportunity again, so I quit my job, sold my house, and fully immersed myself in the crypto space.

I think this unwavering belief is crucial. Blockchain technology is not only applicable to the currency field but can also be used in any future scenario that requires validation. Traditional databases can store data but cannot easily validate it, while blockchain technology provides a more reliable validation method. This technology has tremendous potential applications in the financial sector, and we are still in the early stages of its application in the financial world. To me, this is a major technological opportunity not to be missed. The next similar technological revolution may occur 10 to 15 years from now, and what we are seeing now in terms of artificial intelligence is also an important direction. I believe Bitcoin, blockchain, and artificial intelligence are the three core technologies I have encountered in my adult life. This worldview is crucial for building platforms and driving industry development.

Anthony: You mentioned worldview, which is obviously closely related to personal experience. You have worked in various types of companies and have been exposed to many different life environments, experiences that seem to have helped you cultivate empathy and intuition. Intuition is like your human algorithm; the more you experience, the better you can identify potential. When you first encountered Bitcoin, what made you think it would be so significant? Was it the technology itself, price trends, or some other market factor? What made you confident that it would change the world?

CZ: I am very fortunate to have lived in different countries. This has given me a deeper understanding of globalization. I was born in China and later moved to Canada, where I completed my studies. I then worked in Tokyo, New York, and Shanghai. This experience of globalization has helped me realize that currency should not be confined by national borders. When moving between different countries, I had to exchange currencies, and during the process from Japan to New York, I lost a significant amount of money due to exchange rates. This made me aware of the limitations of the monetary system.

Additionally, I have a technical background. As early as 1998, I used PGP encryption technology, which allowed me to understand Bitcoin's encryption algorithm. I also worked on Wall Street, accumulating financial technology experience at companies like Bloomberg and the Tokyo Stock Exchange system. These backgrounds enabled me to grasp the potential of Bitcoin at an earlier stage. At the same time, I observed that the Bitcoin community in 2013 was full of innovation and a spirit of cooperation, which further solidified my belief.

I believe the combination of these experiences allowed me to realize the value of Bitcoin earlier than others and helped me firmly stay in this industry. I think all of these contribute to people's vision or understanding of the world, and having a global perspective rather than a limited national perspective is very important.

CZ's Vision for the Future of the Crypto Industry

Anthony: You are one of the most successful entrepreneurs of our generation. People are curious about your wealth status. Can you talk about it publicly? Everyone wants to know how successful you really are, and wealth seems to be one way to measure success.

CZ: I know I have enough money to live a comfortable life and have enough funds to do what I want to do. For me, money is a tool that allows me to do things I believe are important. For example, if I want to start a business that can help others and have a positive impact, I have enough resources to make it happen. But what really limits me is not money, but other factors like talent, team, health, and time, which are the truly limited resources. So now I focus more on these aspects rather than money itself.

Anthony: Bitcoin was obviously your first love when entering this industry, and you have successfully built a globally leading exchange platform. What do you think is the development direction of the crypto industry now? Especially as more and more countries are starting to support cryptocurrencies, and hundreds of millions of people have started registering to use these assets.

CZ: I am very optimistic about this market. Some of the world's most powerful governments are driving the development of cryptocurrencies. For example, we see publicly-listed companies with Bitcoin reserves, which is a fantastic development. I believe in the future we will see more institutional adoption, such as ETFs, public reserves, Bitcoin reserves, and so on. Additionally, there are companies launching BNB reserves and Ethereum reserves, all of which are positive trends.

I think the traditional financial markets will also enter the cryptocurrency field on a larger scale. Meanwhile, in terms of innovation, we will see more integration between artificial intelligence and blockchain. This intersection is rapidly expanding. For example, blockchain technology has been adopted by many governments for use in decentralized identity, land registration, healthcare distribution, taxation, and other areas. This indicates that blockchain is transitioning from a single financial tool to a multi-dimensional solution, and these developments are very exciting.

If you had asked me nine months ago, I had no anticipation that we would be in the current environment we are in. This also reflects the importance of government structural changes. Elections can quickly bring new ideas and innovative policies. I believe the United States has the potential to become a global hub for cryptocurrencies, and we hope to contribute to this. Although currently facing some limitations, we look forward to making further contributions in the future.

Anthony: It's a bit crazy, isn't it? You are the world's largest cryptocurrency exchange, yet not in the U.S.

CZ: We hope to enter the U.S. market. Currently, the fees for cryptocurrency exchanges in the U.S. are about 10 to 20 times higher than in other regions globally. This is somewhat abnormal because in the U.S., prices for other commodities are usually lower, and delivery speeds are faster. For example, when I use Amazon in the U.S., prices for goods are cheaper, and delivery is quicker. But in the cryptocurrency field, U.S. consumers pay higher fees and have fewer choices. We hope to change this situation, but currently face some regulatory restrictions that we need to address step by step.

I think we are in a simulation-like environment, and when faced with challenges, we just need to do our best and keep moving forward. I also want to thank you for your support over the years. Although we haven't had many opportunities to work together, I have always respected your contributions to the industry; you are a rational voice in the U.S. crypto industry. I greatly appreciate everything you have done and hope for more collaboration opportunities in the future.

CZ's Childhood Life

Anthony: While we have known each other for some time, I have found that most people only focus on your professional achievements and know very little about your childhood life. When I talk to people and learn more, I realize that your upbringing in China was actually quite tough. Could you share what your childhood life was like?

CZ: I was born in a remote village in China and later moved to an even smaller village. Before I can remember, our home had no running water or electricity. When I was in primary school, I often studied under an oil lamp with a glass cover. A few years later, our home got a water pump for drawing water. It was only after a few more years that we got electricity. Later, we moved to a small city in China and then immigrated to Canada. All of this happened before I was 12 years old, so my life underwent significant changes.

Even in Vancouver, my parents faced many challenges. In China, they were teachers, but in Vancouver, my father chose to further his studies and become a professor. Due to language barriers, my mother could only work in a sewing factory, sewing clothes. She would leave home at 7 a.m. and come back at 7 p.m. every day, earning almost the minimum wage. Though we were not starving, we were indeed living at the bottom of society. However, we never had debt because Chinese parents are always accustomed to saving. I saw my parents put in tremendous effort to provide me with better opportunities, and this experience deeply influenced me. I developed frugal habits, avoided extravagant spending, and learned the value of hard work. I believe the combination of these two factors greatly helped in my growth.

From a village without running water to where I am today, I consider myself very fortunate. This experience has made me cherish life even more. I remember when I was young, my mother had to walk 300 meters to the village well, carrying two buckets of water back home with a bamboo pole. To come from that kind of life to where I am today, I am full of gratitude for life.

Anthony: Interestingly, your career is closely related to innovation and technology, yet your described childhood life seemed to have almost no technology, right? No running water, no electricity. Did you realize you were lacking many things during your growth, or did you feel that everyone around you was more or less the same, so you thought that was everyone's way of life?

CZ: When I was young, I thought everyone's life was like ours. Even now, I still maintain this mindset. I believe comparisons between people are relative. In the village, everyone's standard of living was similar. In fact, my parents were teachers, which was slightly above average in the village. But when we moved to a bigger city, I realized that the living conditions in cities were much better. We moved to Hefei, where one of China's top universities is located. In the university campus, I saw paved cement paths for the first time, which were much better than dirt roads. These experiences made me realize that the world is much broader than I imagined.

This experience has also cultivated my mindset of accepting new things. Early adopters of cryptocurrency usually have an open mind, and I believe my upbringing has helped with that as well. I have always felt that I am not fundamentally different from others, so I have never had a sense of superiority or inferiority. I hope that I am not too arrogant, but also not too pessimistic. Overall, I have always been an optimist.

Relationship with Parents

Anthony: I recently watched the NBA Draft, where a player talked about living in an environment without electricity, relying on a generator at home for seven years. You could feel his emotions in that moment as he said, "I've come from seven years of living off a generator, my mom sacrificed a lot for me, and now I can play in the NBA." While I don't know how good you are at basketball, in the tech field, you have reached a similar top level like the NBA. Could you talk about your relationship with your parents? Have you discussed with them the significant differences between your current life and upbringing environment? Have they ever expressed pride in you?

CZ: I am very fortunate to have a good relationship with my parents. I didn't spend much time with my father because he was mostly working in a different city to provide a better life for us. I spent more time with my mother. Her expectations of me were not high, and she has always been very frugal. Now she is 83 or 84 years old, but she still often complains about the high prices of groceries. I often tell her, "Mom, you can buy anything you want now." But she always maintains her frugal habits.

My father was also a very frugal person. Once I gave him some money, and after six months or a year, I asked him, "Dad, do you need more money? I can give you more." But he refused, saying, "No, I haven't spent the money you gave me last time." So I only gave him money once. Their way of life has hardly changed, and they do not want to change their lifestyle.

My father passed away two years ago. Although I was not particularly close to him, his way of life has had a significant impact on me. He was very frugal, lived a simple life, never pursued luxury, and my mother is the same way. So overall, my relationship with my parents is quite normal—not particularly intimate but not distant either.

Experience of Immigrating to Canada

Anthony: When you immigrated to Canada at the age of 12, what impression did that experience leave on you? From the American perspective, Canada is sometimes jokingly referred to as the "little brother." Although Canadians may not like this term, it is indeed a very Westernized country, almost the closest to America. Going from a village in China to a slightly larger city, and then to relatively developed Canada, such a transition must have been very shocking for you, right?

CZ: That was indeed a very special experience. For example, when we first arrived in Canada, my father's friend picked us up from the airport. For me, it was a big deal because prior to that, I had never ridden in a private car. In China, private cars were very rare, and I could only take the bus. A few days later, my father bought a $400 used car for our family. I was extremely excited at the time, thinking, "Wow, we actually have our own car!" Life in Canada was really good; the quality of life here is generally very high. The environment is safe, with wide green spaces where you can play with friends. The academic pressure at school was not too intense, relatively relaxed, and I had time to learn English. Overall, the system here is very good. I am very grateful for the time I spent in Canada during my teenage years and university years, where I also developed many good habits.

During high school, I particularly enjoyed playing volleyball, practicing for about 15 hours a week. As the captain of the school's volleyball team, I held this role for four of the six years. I was not the captain from 8th grade to the first semester of 9th grade, but from the second semester of 9th grade onwards, I became the captain. Not only did I love sports, but I also excelled academically. I had a good relationship with the teachers at our school. Our school was small, starting with only 200 students and increasing to 400 upon graduation. Because of the small size of the school, everyone knew each other well. I feel that my teenage years were one of the most beautiful times in my life and greatly contributed to my growth. So, I always have a deep appreciation for Canada; it really helped me grow a lot.

Anthony: I heard you mention a situation that reminded me of my wife. She is from Bulgaria and when she moved to the U.S., she found the math level here much simpler than her original school. In Bulgaria, she was solving equations, but in the U.S., other children were still doing addition and subtraction. She went from being the worst math student in her class to the best. I think the Chinese education system is also more rigorous. So, what was the transition like for you from the Chinese education system to the Canadian education system?

CZ: Yes, because my mother was a high school teacher and didn't want to take care of me and my younger sister at home, she enrolled us in school two years early. In China, I completed 8th grade and moved to Canada at the age of 12. However, after arriving in Canada, they decided to put me in elementary school based on my age. I spent a year in elementary school before entering the 8th-grade middle school. Although my academic year was delayed, I studied math at a 10th-grade level. I also participated in several Canadian national math competitions, such as Fermat and Euclid. These competitions are advanced math competitions for middle school students, and most years I ranked in the top 100, even in the top 25 in my final year, and received some small awards. Math has always been my strong suit, naturally guiding me into the field of programming and technology. This part was relatively easy for me.

English, on the other hand, has always been my challenge as it is my second language. I joined an ESL (English as a Second Language) class in high school. Students in these classes usually struggle to get an A in regular English classes, but I most of the time managed to get an A. This was thanks to my English teacher who really liked my writing style. He found my essays very engaging, and even though my vocabulary was limited, I always managed to inject humor into my writing, which he greatly appreciated. Our good relationship gave me a lot of confidence in my writing. While my grammar was not the best and I made frequent mistakes, the humor certainly helped me a lot. So academically, I excelled in math, while English was something I gradually improved through hard work.

Career and Life Before Bitcoin

Anthony: Can you share your life experiences from high school graduation to when you first encountered Bitcoin? You are around 35 years old, and I am not very clear on this period of your story. Where did you go? What kind of work did you do? I heard you worked in some financial companies and also went back to Asia. Could you share your experiences?

CZ: In my fourth year at McGill University, I used to look for internships every summer. In my first summer, I landed a software development internship; in the second summer, I continued in the same company; in the third summer, I interned at a company in Tokyo that provided trading systems for the Tokyo Stock Exchange. I was responsible for some junior development work. In my fourth year, I continued working in this company, participating in a significant project. However, due to project delays, the manager wanted me to extend for a semester to complete the work, as I had become an essential part of the project. To avoid affecting the team's progress, I agreed.

However, the project eventually did not finish on time, which was not my fault. The project faced multiple delays, and as a result, I did not return to McGill to complete my degree. I later found out that not having a degree would pose challenges for work visa applications, so I transferred credits through online distance education, took some courses, and eventually obtained a bachelor's degree. After that, I continued working in Tokyo for a few more years until the Internet bubble burst in 2000. Technology stocks plummeted, and the company I was at was acquired by a Nasdaq-listed company, but the stock performance post-acquisition was poor, and many employees left. I started looking for new jobs, but the hiring opportunities were very limited. It wasn't until 2001 when Bloomberg recruited, and I got a job opportunity through a phone interview.

Just as I was preparing to work in New York, the 9/11 incident happened. I called to confirm if the job was still available, and they told me the position remained unchanged and asked if I was still willing to join. I readily agreed. So in November 2001, I went to New York, just two months after the 9/11 incident. Despite the unusually quiet streets, the work environment was very stable, and I worked there for four years.

During my time at Bloomberg, I experienced significant growth. Upon joining as a Senior Developer, I was promoted three times within two years, eventually managing a team of 60 people that later expanded to 80, spread across New York, Princeton, London, and Tokyo. We developed a futures trading system, which was my first full-time involvement in a second-generation trading system. However, in the following two years, I did not receive further promotions. I found myself to be the youngest manager in the team and the only Asian face. Promotion opportunities were very limited and would require a long wait.

Therefore, I started paying attention to entrepreneurial opportunities. At that time, there was a group of people running a startup in Shanghai, and I thought this could be a good option. Several senior founders I had worked with in Japan were starting a new project in Shanghai, so I decided to join them as the youngest partner in the team. The six of us founded a company called Fusion Systems in 2005. It was a company focused on financial technology solutions, and we expanded our operations to Tokyo, Hong Kong, Shanghai, and Los Angeles. Initially, the company was relatively small, with about 200 employees. Despite facing some challenges, we eventually became profitable, and the partners' quality of life improved. We persisted in this manner for eight years, from 2005 to 2013.

In 2013, I had my first encounter with Bitcoin. I found it to be a very novel technology and tried to have Fusion Systems develop a Bitcoin payment service similar to BitPay. At that time, I raised $4 million in funding, but the other partners, due to their older age and limited understanding of Bitcoin's potential, decided not to participate in the project. I chose to leave and officially entered the Bitcoin industry. That was a turning point in my career.

Anthony: Looking back, people can always find clues from their careers, seeing how things they have done gradually connect and eventually lead to success. But these connections are usually only clear in hindsight, right? When you joined Bloomberg or Fusion, you probably couldn't predict how the future would unfold.

First Encounter with Bitcoin in 2013

Anthony: What was the first thing you did after your first encounter with Bitcoin?

CZ: I first encountered Bitcoin in July 2013 when its price was around $70. It took me about six months to fully understand Bitcoin and build enough confidence. By December 2013, when I completely grasped Bitcoin's potential, its price had risen to $1000, the peak of that year. At that time, I felt like I was late to the party and needed to act quickly. So, in January 2014, I sold my apartment and used the funds to buy Bitcoin. Every time I received a payment, I used it to buy Bitcoin. For instance, in January 2014, I bought some at prices of $800 and $600. Subsequently, the price of Bitcoin started to decline. By February or March, when I received my last payment, I purchased Bitcoin at around $400. In the end, my average purchase price of Bitcoin was approximately $600.

However, from 2014 to early 2015, over an 18-month period, the price of Bitcoin remained stuck between $200 and $150. It can be said that my investment lost two-thirds of its value in a short period of time. Fortunately, my family was very supportive, though my mom always nagged, "You foolish child, why did you do this? Why not continue working at Bloomberg? Your income was good back then." But she was just complaining and did not stop my decision.

My thought at that time was either I had really misjudged, or others had not fully realized the potential of Bitcoin yet. I thought I might have just entered early, so I decided to persevere. By 2016, Zhou Xiaochuan, the Governor of the People's Bank of China, mentioned blockchain technology for the first time in a public speech. This was the first official mention of blockchain by China, which garnered widespread attention. Subsequently, China's cryptocurrency industry quickly shifted focus to blockchain technology, and market prices began to rise. During this time, I experienced the first "winter cycle" of the cryptocurrency market, a prolonged bear market period. After going through the first cycle, dealing with the second cycle became easier, as the market foundation had become more solid.

Idea and Process of Establishing Binance

Anthony: So, when did you come up with the idea to establish Binance? Did you do it alone, or did you build a team from the beginning?

CZ: Actually, founding an exchange platform was not a new idea. Almost everyone I met in the crypto industry had considered establishing an exchange platform. As early as 2013, we had discussed this idea, but at that time, I felt I did not have enough experience, so I chose to join an existing exchange platform. However, the situation there was not ideal, and less than a year later, I chose to leave. Afterward, I attempted to establish a Bitcoin exchange platform in Japan because the then world's largest Bitcoin exchange Mt. Gox collapsed in 2014 due to a security breach. I believed there was a demand in the Japanese market for new exchange platforms, so I started exploring this direction in 2015.

At that time, I contacted some venture capital firms to raise funds. However, they advised me not to directly start an exchange platform but to become a technology provider for other exchange platforms because they had already invested in some exchanges in Japan, and I was good at building systems. So, I found a few partners and began focusing on developing exchange platform systems. We shifted from initially planning to start our exchange platform to focusing on providing technical support to other exchange platforms. This company achieved good results, and our clients included over 30 exchange platforms, many of which were small-scale crypto exchanges. Meanwhile, a new phenomenon called "over-the-counter trading" emerged in the Chinese market, where these clients needed system support for order book matching, among other things. We charged our customers a monthly fee through a B2B model, and the business grew very steadily.

However, in early 2017, the Chinese government shut down the majority of the customers as it no longer allowed that type of trading platform to operate. At that time, our team had grown to about 25 people, mostly technical staff with a few salespeople. So we decided to pivot back to our original idea of starting our own trading platform.

I have always believed that creativity itself is not the most important thing; execution is key. By 2017, we already had a mature system and an efficient team. Although most team members were relatively young and inexperienced, they were very talented. At that time, most trading platforms still only supported Bitcoin trading, and even large platforms like Coinbase had not yet supported Ethereum. The ERC20 tokens on Ethereum were also not widely accepted by mainstream trading platforms, and 2017 was the beginning of the ICO frenzy, with many new projects issuing ERC20 tokens. We seized this market gap and quickly launched a service supporting Ethereum and all ERC20 tokens, taking the lead over our competitors.

Furthermore, we made significant improvements in customer service. At that time, if a user submitted a support request, they might have to wait over two months for a response, especially in cases where they couldn’t withdraw Bitcoin, which was very frustrating for users. We decided to provide a service with responses within 24 hours, eventually shortening the response time to less than an hour. Through a high-quality product and excellent service, we successfully attracted a large number of active users and stood out in the industry. These efforts and decisions helped us achieve success in the early stages.

Rapid Growth Phase and Becoming the World's Top Exchange

Anthony: During Binance's rapid growth, you introduced a much-needed product to the market, addressing a pain point. I find that many business success stories can be traced back to meeting the market's needs. So, what was your experience during Binance's rapid rise in 2017? It was my first experience of the crypto industry's cycles, and I realized the market was going to get crazy. It wasn't just about Bitcoin; almost all cryptocurrencies were rising. Then the market experienced a major correction, and I believe price volatility often accompanies emotional ups and downs. So, in Binance's early days, how did you deal with this situation?

CZ: It can be said that the experience of the first eight months was very surreal, everything was beyond expectations. We officially launched on July 14, 2017, and just six weeks later, the Chinese government announced no longer allowing cryptocurrency trading platforms. We were faced with a choice: to either shut down the company or move elsewhere. This is where my international experience came into play. I didn't think relocation was complicated as I had lived in many countries before. So we decided to move the 30 team members from China to Tokyo and no longer use China as our base. This may be unimaginable for many companies, but for us, it was a reality.

At that time, we didn't have any fiat trading channels because banks in both China and other countries refused to cooperate with cryptocurrency exchanges. Therefore, we could only focus on blockchain business and become a crypto-to-crypto trading platform. Users conducted Bitcoin deposits, Ethereum transactions, and withdrawals through the blockchain. Although this model limited our user base in each country, we found that a small percentage of users in every country were willing to use this method. Gradually, we developed into a global platform.

After the migration was completed, the business began to grow rapidly. Two months after launch, we entered the top ten global exchange rankings; four months later, we moved into the top five and stayed there for about a month. By December 2017, just five months after launch, I received a message in Tokyo: "Congratulations, Binance is now the world's number one cryptocurrency exchange." At the same time, the price of Bitcoin surged from $3000 at the beginning of the year to $17,000 to $19,000 in December, almost in line with our peak trading volume. However, this also put significant pressure on the system.

I remember our Chief Technology Officer had almost no rest time. The product manager monitored community dynamics late at night and would contact the CTO as soon as an issue was found; the operations manager woke up in the early morning to check the community status and would immediately contact the CTO upon discovering a problem. During those months, the CTO was dealing with urgent issues almost every day, and the workload was very intense.

By January 2018, our registered user count had peaked, with 200,000 new users added every hour and 300,000 new users every day. The system was under tremendous pressure, unable to process registration requests promptly. We had to pause response services for an hour or within 24 hours. Fortunately, as the price of Bitcoin fell, the market calmed down somewhat, giving us a breathing room. We used this time to optimize the system and prepare for the next stage of development.

Anthony: In Binance's first year, how much money did you make? This is an incredible story. You launched a product that quickly became the market's focus. So, how big did it get?

CZ: I remember the profit in the first year was approximately one billion dollars. I think we might have been the first company to earn a billion-dollar profit from a startup.

Anthony: Was that achieved within the first six months? After all, you launched in July.

CZ: Yes, most of the profit was realized between the first three to eight months, especially during the third to seventh month, which was our peak trading period. Our research found that although some companies reached a billion-dollar valuation faster, from a profitability perspective, we may have been the fastest-growing startup to achieve this goal.

Anthony: Achieving a billion dollars in profit in the first year is truly remarkable. What were you thinking at that time? Did you feel extremely successful, or were you worried that it might disappear? What were your emotions like? Did you take a moment to celebrate this milestone?

CZ: At that time, I was relatively balanced in my mindset, closely tied to the price fluctuations of Bitcoin. We held the profits in cryptocurrency form and did not convert them into fiat currency because we believed in the long-term value of cryptocurrency. This volatility is something we had to face. I believed that as long as we ensured enough funding buffer, we could manage any potential downside risks. So, I was not overly excited, nor did I distribute all the profits to avoid getting into trouble during a market downturn.

In early 2018, the price of Bitcoin dropped from $20,000 to $3,000. This made me realize that the profit number largely depended on the asset amount on the platform. We needed to reorganize wallets and transfer billions of dollars in assets. The first time doing such an operation was indeed nerve-wracking, but after doing it a few times, I got used to it, gradually becoming numb to these numbers. When looking at my personal wallet, I have never cashed out these assets, so for me, it's more like a virtual number rather than actual wealth. This mindset helped me focus on long-term development and not be disturbed by short-term fluctuations.

2019 Binance Hack and the "Funds Are Safe" Incident

Anthony: I remember one day when I was walking on the streets of New York, I suddenly heard about the Binance hack. Was it in 2018 or 2019? I contacted a Binance executive, asking if they were safe and needed help. At that time, the situation was very chaotic, and everyone was trying to figure out what had happened, whether the funds were safe, and so on. Can you talk to us about this incident? Because I think when people hear about Binance going from zero to a billion dollars in profit in the first year, they might think everything went smoothly, but in reality, you've also faced many challenges and difficulties, haven't you?

CZ: That's right. This incident occurred in May 2019 when we experienced a major hack. The hacker stole 7,000 Bitcoins from our hot wallet, valued at around $40 million at the time. To address this incident, we halted withdrawals for a week, but trading continued as usual to avoid price fluctuations and discrepancies with other exchanges. A few hours after the event, I participated in a pre-scheduled AMA. Although it was originally planned for the next day, I decided to go live as scheduled and communicate directly with users. Many users, based on my attitude and performance, believed we had enough funds to handle this crisis.

In order to provide everyone with more information, in 2019, $40 million was equivalent to one month of our revenue. While this event did not bankrupt us, it still made the whole team very nervous. We were worried about whether the hacker would further attack other assets. Security issues have always been one of the biggest risks in the crypto industry. After the event, we developed a detailed response plan, updated progress on Twitter every two hours, explained to users the measures we were taking, and provided proof of assets. Looking back, this crisis turned out to be a blessing in disguise.

A week later, we restored withdrawal functionality and found that the amount of user deposits exceeded the withdrawal amount. Many users expressed their approval and trust in how we handled the event. I believe this event taught us an important lesson: transparent and timely communication, taking responsibility proactively and resolving issues quickly can actually increase user trust. In fact, we have also seen other companies gain more reputation after adopting a similar strategy in similar events. This is indeed a complex business, full of challenges.

Anthony: We cannot talk about this hack without mentioning the phrase "funds are safu." Can you explain the origin of this meme to us?

CZ: At the time of the event, I publicly stated "funds are safu." Later, a YouTuber made a funny video portraying me as a Japanese person, using an exaggerated tone to say "funds are safu." This video attracted widespread attention, and whenever we paused withdrawals or performed system updates, I would respond to users with the phrase "funds are safu." Gradually, I embraced this meme, and the community began to support it, eventually turning it into a popular internet culture phenomenon.

Anthony: Every time I see this meme, I can't help but laugh because it's so closely tied to that moment. Well, 2019 is over, and the hack is now in the past. 2020 was obviously a special year, especially after the outbreak of the pandemic. Can you talk to us about that year? Your business was gradually stabilizing at that time and is now starting to scale, right? I think now, at least everyone in the world paying attention to crypto finance realizes that crypto finance is successful. So what special events happened in 2020 and 2021?

CZ: 2020 can be seen as a warm-up year, while 2021 was an explosive year. In 2019, we launched Binance Launchpad, a platform to help new projects raise funds through token sales. At that time, it was the bottom of the crypto winter, with the price of Bitcoin around $3,000. Through Launchpad, we introduced many new features to provide users with more choices. The market gradually warmed up in 2020, becoming a transitional year, and 2021 saw the full-scale eruption of the crypto industry.

At the beginning of 2021, Binance had around 20 million users, which grew to 120 million by the end of the year, a 5 to 6-fold increase. During the same year, the price of Bitcoin surged to $60,000. Despite facing significant pressure that year, we were more prepared. The team had expanded, and our experience had grown richer. While still dealing with challenges in customer support and system issues, overall we had become more mature. 2021 was not only a year of strong user growth but also a year where Binance's reputation was gradually established. We were no longer just a new platform but had become a leader in the industry. This is my main memory of that time.

2021 Bitcoin Boom and Regulatory Landscape

Anthony: At some point, Binance went from a niche crypto product to rapidly becoming a global leading cryptocurrency exchange. Eventually, you stepped onto the world stage, attracting global attention. As we entered 2021, I noticed the crypto industry was starting to face more scrutiny, but at that time, there didn't seem to be much actual action. Obviously, by 2022 and 2023, regulatory pressure has significantly increased. This trend has posed challenges for many companies, including Binance. Could you talk about the crypto industry's boom in 2021 and the regulatory friction you faced globally, especially the pressure from the U.S.?

CZ: I remember we met in January 2019, during the crypto bear market, with Bitcoin's price at around $3,100. Even in a downturn, our conferences still attracted a large number of participants. By 2021, the market saw explosive growth, and the crypto industry's popularity reached new heights. However, a few months later, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, accusing us of fraud, alleging that we misused customer funds, and issued an emergency freeze order in an attempt to restrict all asset flows of the company. To help the company through the tough times, I provided a $250 million loan, but only after the case was fully dismissed was I able to retrieve that funding.

Anthony: Obviously, regulatory agencies' attention on you has been increasing. Can you elaborate on what happened? I feel like many people only saw the headlines, but even I am not very clear on the specifics. What were you accused of? How did these accusations impact you?

CZ: This incident occurred in November 2022. In December 2022, due to concerns in the market about the security of centralized exchange platform funds, Binance experienced a massive user withdrawal. Within a week, we processed around $14 billion in withdrawals, with the highest day being on a Wednesday with withdrawals hitting $7 billion. On that day, I was having dinner with some industry people in Dubai, and they were impressed by Binance's resources, while in my mind, I was not directly involved in the withdrawal transactions.

Despite facing pressure, our system has been running smoothly, successfully processing all withdrawal requests without any issues. However, in January 2023, a month later, the SEC filed a lawsuit against us, attempting to link Binance to the FTX collapse event and accusing us of misappropriating user funds, among other things. During the court hearing, the judge clearly stated that the SEC did not have any substantial evidence. These proceedings are all on record and can be publicly accessed.

During the SEC lawsuit, Binance's trading volume accounted for approximately 35% of Coinbase's global trading volume. In the U.S. market, our market share even reached 50% of Coinbase's. However, after the lawsuit, Binance US lost its banking channels, and the trading volume rapidly dropped to around 1% of Coinbase's. This had a significant impact on our business.

Subsequently, the U.S. Department of Justice (DOJ) also launched an investigation. In response to the DOJ's charges, I entered into a plea agreement with them, admitting to violating a provision of the Bank Secrecy Act. I cannot disclose more details, but the key point is that I became the first person in U.S. history to be sentenced to prison for a single violation of the Bank Secrecy Act, without involving fraud or other criminal activities. This came as a big surprise to me, but that's how things turned out. I voluntarily flew to the U.S. to deal with this matter, even though I thought the likelihood of such an outcome was minimal, but it eventually happened. I spent four months in prison, and fortunately, everything turned out okay once I was out.

Binance and CZ's Story

Anthony: I find your decision to voluntarily return to the U.S. quite remarkable. Perhaps you thought the likelihood of going to prison was low, but you still chose to face the charges. I imagine no one would advise you to flee, but in reality, many people might choose to evade, right? They might say, 'I'm not going.' So, how did you make that decision in this process? Did you discuss it with friends or family, or what were your feelings during all of this?

CZ: This was a very challenging process. It's hard to put into words for people to fully grasp the complexity of it. It was an unimaginable psychological challenge. Throughout this process, I considered different options multiple times and sought advice from friends and lawyers.

I had to weigh the options, and if I chose to evade, I could potentially become an international fugitive, making life very difficult. I would need to be extremely cautious at border checks and might even never be able to move freely again. Additionally, my career would be severely impacted. More importantly, many of our users, especially those holding BNB, would suffer losses. The price of BNB could plummet, and the whole crypto industry would be affected, with even Bitcoin's price possibly dropping. We have already seen the significant market impact during FTX's collapse.

While I could choose to live in a country without an extradition treaty and lead a relatively peaceful life, that is not the lifestyle I desire. I do not want to live a life of evasion and hiding. I have some trust in the U.S. judicial system. Despite the political pressure the crypto industry faces, I believe the U.S. justice system is still relatively fair. So I thought, why not face it? Even if the worst-case scenario is going to prison, the time might not be too long. I believe the greater likelihood is being sentenced to 6 to 12 months of house arrest. At least this way, I won't be in contact with other inmates, and my personal safety will be ensured.

Furthermore, I have already resigned from my position at Binance, paid a hefty fine, and the company has paid an even larger fine. I believe these are sufficient. So after careful consideration, I have decided to confront the issue, take responsibility, rather than choosing to evade.

Anthony: During this process, I heard that you missed the birth of a child, is that true?

CZ: No, I did not miss the birth of my child. My youngest son was born in July 2023, and I flew to the U.S. in November 2023. However, I did miss another son's minor surgery. When I flew to the U.S., the plea agreement had not been finalized yet. The U.S. government wanted me to stay in the U.S. and promised not to restrict my movements; I could freely move around the U.S., but they did not want me to leave the country.

We argued about this, and I paid a $150 million bail, and three friends mortgaged their properties to me as collateral. I believed I should be allowed to leave the U.S. because I voluntarily flew in to plead guilty. It is absurd to plead guilty but not show up in court. If someone does not want to come, then just refuse to plead guilty and go to trial.

The original judge agreed that I could leave, but the government later appealed. This appeal was very rare, and more surprisingly, the judge actually supported the government's request for me to stay in the U.S. I initially only brought a small carry-on suitcase with a few pieces of clothing, but later had to buy new clothes in the U.S. I also missed an important medical procedure for my elder son.

My sentencing process was initially supposed to take three months, but the government requested a delay on my birthday, and the court agreed to a three-month postponement. I requested to leave the U.S., but the court denied it. So, I stayed in the U.S. for six months, away from my family, just waiting for sentencing. I then went through four months of imprisonment.

CZ's Prison Experience

Anthony: I think anyone with children and a family would understand your situation. Gee, if they came to the U.S. but couldn't leave or encountered other issues, that is indeed worrying. Right? I think that is understandable. So you were sentenced. As far as I understand, you were sentenced to four months of imprisonment, correct? I also heard that your first cellmate was a double murderer, is that true?

CZ: That's right, it's true. What's even more interesting is that before I was sentenced and incarcerated, the government had requested the judge to handcuff me and send me to prison. However, the judge denied this request because I had behaved well during my bail period with no infractions in six months, and the judge felt it was unnecessary to subject me to additional supervision.

After sentencing, I thought I would be sent to the lowest security level prison since my crime was considered white-collar. In theory, the lowest security level prisons usually do not have fences, provide a more relaxed environment, and allow inmates to move freely as long as they do not attempt to leave the prison. But because I am not a U.S. citizen, they assigned me to a low-security-level prison.

Low-security-level prisons mainly house drug offenders and other criminals. My first cellmate was a double murderer serving a 30-year sentence, and he had already served 18 years. Due to his good behavior, he had been downgraded from a medium-security prison to a low-security-level prison, but he would never qualify for the lowest security level prison.

Prisons group inmates based on ethnicity to reduce conflicts. I was assigned to the Asian, Pacific Islander, and Native American group. Although my roommate was a double murderer, we got along fine. He was actually very easygoing, but what I found most unbearable was not his crime but his snoring at night. On the first night, I hesitated whether to wake him up, but considering he was a double murderer, I decided against it. The next morning, I politely told him, "Bro, your snoring is really loud." He responded, "It's okay, you can kick me if you want." So, I did that afterwards, and we got along well.

Before my incarceration, Bloomberg and The Wall Street Journal reported that I might be the richest person in American prisons. This kind of reporting did not help me; it made me worry about becoming a target for extortion. Fortunately, most people in prison do not follow this media.

Anthony: Did you ever feel unsafe or did anyone try to extort you?

CZ: Actually, no. I was indeed somewhat worried, but I quickly bonded with the people around me and became part of a group. I worked to adapt to the environment, showing no signs of weakness, so no one tried to extort me. While some people would try to negotiate better conditions in some matters, I did not encounter any physical threats.

Anthony: I can imagine that if a very wealthy, successful person enters a low-security-level prison, others would definitely seek investment or cryptocurrency advice from you. Did you discuss Bitcoin or other cryptocurrencies with them in prison?

CZ: Soon, both the inmates and guards knew my identity, and some inmates showed interest in learning about cryptocurrency and investing. So we managed to have some cryptocurrency-related books shipped to the prison. I formed a small study group with them, spending 30 minutes each day discussing investment knowledge. I assigned them homework, and they asked questions. Among the 9 TVs in the prison, one was converted to a financial news channel to monitor Bitcoin prices. This study group helped me build supporters and also reduced trouble.

Additionally, some guards also asked me if now was a good time to buy Bitcoin. I usually replied, "I don't have internet access here, so I can't get market information to give advice." Although my friends would send me some market updates by mail, I still kept a low profile to avoid unnecessary attention.

Overall, the guards were relatively friendly to me. I did not encounter any major violent incidents in prison; of course, there would be occasional scuffles, but they were not related to me. I believe that the U.S. prison system, at least the low-security level prison where I am, is relatively safe.

Views on Pardon and Legal Battle

Anthony: We just mentioned Mark Rich's story, and I think it's really interesting that you found that book so fascinating. I like that you said you treated it as a textbook to learn from, and you also mentioned the case of Mike Milken. In history, many individuals accused, convicted, or even imprisoned have ultimately been pardoned. I noticed that the current government has also pardoned some criminals, some of whom were drug offenders, and some were white-collar criminals. Pardon is usually a complex process, so have you ever considered applying for a pardon? Could you talk about your views on pardon?

CZ: Of course, I hope to receive a pardon, but honestly, I am not very familiar with the process. As with any criminal, obtaining a pardon is clearly an ideal outcome, especially in my case, where I think there may be some political factors involved. Five days before I was sentenced, Senator Elizabeth Warren once again declared war on cryptocurrency nationwide and wrote an open letter to the Department of Justice. So whether there are political factors involved, I cannot say. Pardon applications are usually handled by lawyers, and I don't want to comment much on that.

Anthony: So, regarding the legal battle, how do you view the charges you are facing? You have pleaded guilty, but do you think there was an element of legal battle in the investigation and prosecution process?

CZ: I think in the Securities and Exchange Commission's (SEC) case, there are clear signs of a legal battle. Our case has now been dismissed with prejudice, indicating that the new government is more reasonable in regulating the market. I feel they are starting to understand the complexity of new technology and industries and are trying to find a balance between encouraging innovation and protecting consumers.

We have indeed seen a shift in attitude. Not only in my case, but if you observe President Trump, he is clearly a primary target of legal warfare and political objectives. During my time in prison, I heard that President Trump attended a Bitcoin conference in Nashville in July and publicly announced his support for cryptocurrency. I also heard that Kamala Harris expressed support for cryptocurrency. This surprised me greatly because it was less than two months since my imprisonment, and the government's attitude seemed to have shifted.

Furthermore, I read that President Trump was criminally charged for taking some documents to the restroom. I find this somewhat extreme. If my staff did this, I might reward them because it shows they are making the most of their time reading documents. This situation makes me feel that the definition of legal warfare is very subjective, especially against the backdrop of the previous administration's obvious hostility toward cryptocurrency. Elizabeth Warren has repeatedly issued warnings about cryptocurrency, and Gary Gensler has initiated multiple lawsuits. And now we see the new administration being more friendly toward cryptocurrency, with a deeper understanding of finance and technology. So, I believe legal warfare may indeed exist, but the specifics are still quite complex.

Original Source

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia