Changpeng Zhao, the founder of Binance, shared his experience of being imprisoned in an interview with CNBC at the World Economic Forum in Davos. He also addressed the opaque US pardon process and changing global attitudes toward digital assets.
According to Zhao, the pardon granted to U.S. President Donald Trump in October alleviated his concerns, even after serving a four-month sentence for violating the Bank Secrecy Act. His comments were one of his most explicit thoughts since leaving prison.
Zhao explained that the felon status would go on to define his life after release. He declared that the pardon brought back his feeling of complete freedom. Zhao underlined that the shift seemed to be important and came several months after the heated discussion of his case.
Zhao Reflects on DOJ Deal and Difficult Early Prison Days
In the process of settling with the U.S. Department of Justice, Zhao resigned from the position of CEO. He pointed out that previous cases of enforcement under the Bank Secrecy Act often resulted in home imprisonment or deferred prosecution agreements.
The Binance founder added that he had never imagined spending some time in jail. He cited previous cases done with no imprisonment consequences. Zhao said his result was abnormal in comparison to those precedents.
He referred to his initial days in prison as being brutal. He remembered strip searches and being switched abruptly to confinement. Zhao clarified his focus on fulfilling his sentence and avoiding any long-term emotional impact.
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Zhao denied that his first intention was taking a pardon. He had asked his lawyers to submit a petition later when the public speculation had gained momentum. The media associated his case with the Trump administration being pro-crypto in the 2024 campaign cycle.
Binance’s CZ Clarifies MGX and FTX Matters
According to Zhao, the American pardon system was not transparent. He denied he had any personal contact with Trump or his family.
He also responded to reports of Abu Dhabi-based investor MGX. He remarked on the use of World Liberty Financial USD1 stablecoin in a transaction with Binance. Zhao claimed that the stablecoin was merely a payment rail but not an investment in its issuer.
Zhao did not provide comments on whether Sam Bankman-Fried, the former FTX CEO, should be granted a pardon or not. He denied allegations that made him one of the key figures in the collapse of FTX. Zhao reported that Binance contemplated acquiring FTX in 2022 but pulled out due to solvency concerns.
Zhao termed himself as a long-term investor and does not engage in speculation. He did not give any predictions about the price of Bitcoin.
To sum up the interview, Zhao considered key choices at Binance in the past. He claimed that he would have blocked U.S. users on the platform upon launch. The move would have escaped the regulatory backlash that ensued.
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