CZ's New Life: From Convicted FTX Founder to Passive Binance Investor

Changpeng Zhao, better known as CZ, the man who built Binance from the ground up, doesn't want his name anywhere near Sam Bankman-Fried's.

Changpeng Zhao (CZ), the man behind Binance, is distancing himself from Sam Bankman-Fried’s (SBF) brand of downfall. In CZ’s own words, comparing him to SBF, the convicted founder of FTX, is like “comparing somebody who’s stealing money versus somebody who failed to register a company.”

CZ's not interested in picking up the reins at Binance, a move that's part of a plea deal with the U.S. Department of Justice. Now he's a “passive investor,” content to watch from the sidelines while Binance moves into a new era.

Binance is now under DOJ scrutiny, and CZ pled guilty to failing to implement an adequate anti-money laundering (AML) program at Binance earlier this year. This led to a four-month stint at a minimum-security prison in California.

The U.S. government slapped a $4.3 billion fine on Binance, demanding accountability from one of the most prominent crypto leaders. It was a clear message: play by the rules or face the consequences.

CZ became the wealthiest U.S. inmate in history during his time in prison. Prosecutors originally pushed for a three-year sentence, hoping to set an example, but CZ’s cooperation earned him a shorter term. However, his days in lockup were no luxury retreat.

CZ kept a low profile, armed with advice from a prison consultant to stick to a modest commissary budget and keep his head down. He filled his time with workouts, writing a book, and connecting with fellow inmates interested in crypto.

Some inmates soon recognized CZ as the “big Bitcoin guy” and started asking him for investment advice. “Many of them asked, like, which coins should they buy?” he said, laughing. Guards even wanted tips, but CZ claimed he was out of the loop. He had no access to market updates and was as blind to crypto trends as anyone else inside.

One particular inmate, a bank robber serving 25 years, stood out as a crypto enthusiast and became CZ's workout buddy. Together, they spent 90 minutes a day in the open-air gym, pushing through a routine that helped CZ stay grounded.

Since his release, CZ's been working to connect this inmate with pro-bono lawyers to reduce his sentence, using his influence for a cause he says he believes in.

Meanwhile, Binance had to adjust. With CZ stepping down, the DOJ wanted a clean break between him and Binance, leading to the appointment of Richard Teng, a former Abu Dhabi regulator, as the new CEO.

But CZ still casts a big shadow. As the largest shareholder, he's not entirely out of the picture, though he claims Binance's leadership consults him “very rarely.” He's still a co-defendant in ongoing civil cases, including one filed by the Securities and Exchange Commission.

Binance's co-founder, Yi He, with whom CZ has children, is still deeply involved, ensuring some continuity despite CZ's absence. And she has been doing a remarkable job so far.

Even before his legal troubles, CZ made major moves, like investing $500 million in Elon Musk’s Twitter takeover, now called X. That hasn't aged well though, from a financial perspective, as Twitter's valuation plummeted after Musk's chaotic revamp.

But CZ's unbothered, saying that, “We're very long-term investors.” Musk's Twitter, in line with his political leanings, became a significant platform for Trump's re-election efforts.

Trump's win, widely seen as positive for crypto due to his skepticism of regulation, coincidentally gave CZ's net worth a $12.1 billion boost, taking it to nearly $53 billion, according to Bloomberg.

While CZ declined to weigh in on Trump's victory, he did comment on Musk's overhaul of Twitter, now X. “I think after Elon took over, things have moved a lot faster,” he said. “There's new features, change happens at a much faster pace.”

The crypto community, like CZ, is keeping an eye on how Musk's platform could change under Trump 2.0, especially with the promise of more crypto-friendly policies.

Before he made his triumphant return to Dubai, CZ spent his sentence at Lompoc II, a low-security prison in California's Santa Barbara County, notorious for its bland meals and strict racial segregation, a system meant to minimize violence. It was a far cry from his usual lifestyle.

CZ, known for his paleo diet of proteins and vegetables, had to settle for a high-starch, low-protein diet heavy on Spam-like meat and occasionally fried fish. “I usually stick to a paleo diet, just proteins and veggies. That's not possible there,” CZ said, underscoring the stark contrast to his previous life.

His cellmate, the

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