Binance co-founder He Yi: Changpeng Zhao’s biggest mistake was ignorance

Binance founder and former CEO Changpeng Zhao (CZ) has issued a public apology for what he called a "bad decision" and took "full responsibility" for his actions.

Meanwhile, Binance co-founder He Yi said that while she acknowledged that CZ may have made mistakes, his biggest mistake was “ignorance.”

CZIssuing an apology and asking for a second chance

Following the settlement with the U.S. Department of Justice (DOJ) in November 2023, Zhao Changpeng is scheduled to accept sentencing on April 30. Although CZ previously waived his right to appeal any sentence of less than 18 months, the US Department of Justice is now seeking a 36-month prison sentence.

In an April 24 letter to U.S. District Judge Richard A. Jones of the Western District of Washington, Zhao acknowledged his past negligence. He recognized the need to implement compliance changes at Binance as quickly as possible and highlighted the stringent controls that were subsequently incorporated during his tenure.

CZ further emphasized his voluntary surrender and acceptance of responsibility in the ongoing case and expressed his desire to resolve the matter in court to pursue new opportunities.

Binance co-founder Changpeng Zhao, however, pleads for a second chance in the face of legal action and reflects on his unusual career path, one marked by simplicity and integrity, including returning investors after startups failed funding initiatives. Furthermore, he describes his involvement in the cryptocurrency space as being driven by the philosophy of inclusivity and equal opportunity, with the aim of supporting small biotech labs and youth-focused initiatives in the future. This shows that Changpeng Zhao is not only focused on business success, but also committed to social responsibility and the positive development of the industry as a whole.

The co-founder of Binance said that CZ’s error originated from “ignorance”

He Yi, the co-founder of Binance and the mother of Changpeng Zhao’s three children, described him as a guardian of the cryptocurrency industry and likened the industry to the Wild West. She pointed out that as a start-up company without a brilliant background, the founding team, including herself, lacked legal expertise, and most team members except Zhao Changpeng could not read English. This shows that in the early development stages of Binance, the team had certain legal and language limitations, which may have been one of the reasons for some later problems.

Despite having limited experience and legal knowledge, Changpeng Zhao (CZ) earned the trust of users with his fairness, integrity, and strong sense of responsibility to the industry, despite making mistakes along the way. At the same time, both Binance and CZ have suffered the corresponding consequences. This reflects that even in the face of challenges and mistakes, CZ’s leadership and Binance’s team have gained the support of users and taken responsibility for their actions by adhering to principles and responsibility to the industry.

At the same time, in the process of requesting leniency, family members of Changpeng Zhao (CZ) were mentioned, including his wife and two children studying in American institutions, as well as his sister, who was a managing director of Morgan Stanley. This information may be used to demonstrate Zhao Changpeng's personal circumstances and family responsibilities to support his request for a more lenient sentence. By mentioning family members, it may be intended to emphasize his family ties and commitment to the family, which is sometimes seen as a positive factor when assessing an individual's character and responsibilities.

Changpeng Zhao's sister, Jessica Zhao, acknowledged CZ's mistakes and emphasized his commitment to altruism. She specifically mentioned the controversy with FTX, noting that CZ is committed to maintaining the integrity of Binance, demonstrating this by avoiding the misuse of customer funds. Jessica Zhao's statement may be an attempt to gain sympathy points for CZ in the legal proceedings while highlighting his respect for ethical and legal norms and his commitment to protecting the interests of his clients. By mentioning the controversy over FTX, it may also be intended to provide a contrasting context showing CZ’s ethical stance in the industry.

Notably, Binance settled charges of U.S. anti-money laundering and sanctions violations late last year, resulting in fines of up to $4.3 billion and regulatory oversight by the authorities. This marks one of the largest enforcement actions in the history of the U.S. Treasury Department and a major turning point for Binance, requiring the company to adopt stricter compliance measures and make significant changes to its operations.

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