Binance's Growth Increases Despite Changpeng Zhao Entering Iron Bars

Changpeng Zhao, founder and former CEO of the Binance crypto exchange. (Photo; Doc. UToday)

Changpeng Zhao or commonly known as CZ is the founder and former CEO of Binance. CZ has been sentenced to four months in prison for violating anti-money laundering regulations. Although this verdict is lighter than the prosecutor's demand for a three-year sentence, this case marks an important moment in crypto industry regulation.

Zhao, whose fortune is estimated at 43 billion US dollars (around Rp. 699 trillion), has agreed to pay a personal fine of US$ 50 million (around Rp. 812.75 billion). Meanwhile, Binance itself was required to pay a fine of US$4.3 billion (around Rp. 69.895 trillion) to resolve the allegations of the same violation.

Despite facing legal challenges, Binance continues to show strong growth. In 2023, the exchange managed to attract more than 40 million new users, an increase of 30% from the previous year. Customer wealth in Binance is reported to exceed 100 billion US dollars (approximately Rp1.625 trillion). Binance's annual revenue as of March is estimated at around 9.8 billion US dollars (approximately Rp159.305 trillion), according to Bloomberg.

Although Zhao has reduced his role in Binance, he still has a significant influence through the new board of directors, consisting of his close colleagues and partner, Yi He. In addition, Binance and its affiliates, Binance.US, are currently facing legal challenges from the US Securities and Exchange Commission (SEC), accusing them of operating without proper registration.