"Return the Coins to Zhao" is History, CZ's New Role in the Industry After Regaining Freedom

A phrase, “Playing coins back to Zhao,” once popular in the crypto community, humorously suggested that no matter how much money was invested, it would ultimately flow into the same person’s pocket. Today, that person, Zhao Changpeng, the former crypto king, regained his freedom on September 27, 2024, two days earlier than scheduled. His four months in prison mark a turning point in an era and herald a new chapter in the story of “Playing coins back to Zhao.”

From coder to crypto king: a convergence of wealth and dreams

Born in Jiangsu in 1976, Zhao Changpeng showed a passion for the digital world from a young age. At 12, after moving to Canada with his family, he enrolled at McGill University, earning a degree in Computer Science in 1994. This educational period laid a solid technical foundation for him.

After graduation, Zhao worked at Bloomberg and Blockchain.info. Though these roles were low-profile, they quietly accumulated industry knowledge necessary for his future entrepreneurial ventures. The pivotal moment came in 2013—when he encountered Bitcoin, sold his house to buy coins, joined OKCoin, and gradually reached the peak of his entrepreneurial journey.

According to estimates from Forbes and Bloomberg, Zhao’s personal wealth now ranges between $30 billion and $61 billion. The rapid accumulation of wealth is unprecedented in crypto history and is a key reason why the phrase “Playing coins back to Zhao” is widely circulated—he seems to embody the ultimate success story in this industry.

The rise of Binance: standing out amid chaos

In 2017, Zhao founded Binance. With low trading fees, a wide variety of tokens, and an intuitive user interface, Binance quickly gained global recognition. In just a few years, it transformed from an unknown startup into the world’s largest cryptocurrency exchange.

Today, Binance’s market dominance remains unchallenged. According to CoinMarketCap, as of September 27, 2024, Binance’s 24-hour trading volume reached $15.4 billion, while the largest U.S. exchange, Coinbase, had only $2.5 billion. The stark difference highlights Binance’s absolute advantage in the global market. In the narrative of “Playing coins back to Zhao,” this market concentration is central—the traffic and capital flowing to the leading platform far surpass competitors.

Regulatory storms: the pain and transformation of industry giants

The rapid growth of the crypto industry contrasted sharply with lagging regulation. The fast development of this emerging sector often outpaced existing legal frameworks, leading to chaos within the market. As the industry leader, Binance naturally became a focus of global regulatory scrutiny.

Regulatory pressure came from all directions. In 2021, the UK’s Financial Conduct Authority issued a consumer warning against Binance. Then, in March 2023, the U.S. Commodity Futures Trading Commission (CFTC) filed suit against Binance, accusing the platform of allowing unregistered U.S. residents to trade crypto derivatives and lacking proper KYC and AML protocols.

The most severe blow came from the U.S. Securities and Exchange Commission (SEC). On June 5, 2023, the SEC filed 13 charges against Binance and Zhao, involving unregistered token sales, unregistered lending products, and unregistered staking services. Zhao was ultimately found guilty, facing four months in prison and a $50 million fine, while Binance was fined $4.3 billion.

In a sense, this outcome represented a compromise for both regulators and Binance. Binance was allowed to continue operations, while regulators established their authority through unprecedented fines. The story of “Playing coins back to Zhao” now carries deeper implications about systems and order.

Rebirth and influence as a shareholder

After his release, Zhao faced strict restrictions. He was prohibited from holding any executive or strategic roles at Binance, participating in daily operations, trading decisions, or marketing plans, and was barred from directly engaging in crypto exchange activities for a period. Binance’s current CEO, Richard Teng, publicly stated that CZ would not rejoin Binance’s management, and the exchange had imposed a lifetime ban on him.

However, these restrictions did not completely cut Zhao’s influence over Binance. Multiple reports indicate he still owns about 90% of Binance’s shares, remaining the largest shareholder. Teng admitted in interviews that, as a shareholder, Zhao retains the right to monitor company performance; if operations fall short, he can nominate or replace board members or even the CEO. The decision-making power at shareholder meetings still lies with him.

This role shift is subtle—moving from operator to observer, from daily decision-maker to strategic influencer. In the new era, “Playing coins back to Zhao” has gained a fresh interpretation.

Moving away from the spotlight: towards education and innovation

After gaining freedom, Zhao shifted his focus to new fields. He publicly announced plans to emphasize inclusive education and philanthropy, supporting innovative projects.

In March 2024, he launched Giggle Academy, an online education platform unrelated to cryptocurrencies, aimed at providing quality educational resources to underserved communities worldwide. This marks a transition from a crypto emperor to a social responsibility advocate.

Additionally, Zhao expressed interest in investing in artificial intelligence and biotechnology, engaging with industry leaders. His previous strategy of concentrating funds on the crypto ecosystem is gradually expanding into broader technological innovation.

Waves of the era: a new beginning for the industry

The four months in prison served as a profound period of reflection for Zhao. It prompted him to reevaluate past decisions and sounded an alarm for the entire crypto industry—wild growth is behind us; regulation and orderly operation are the future.

As global regulatory frameworks improve and new technologies and applications emerge, the crypto industry remains vibrant and full of potential. From initial teasing to deep reflection, the story of “Playing coins back to Zhao” has evolved into a discussion on market concentration, regulatory balance, innovation, and order. Zhao’s experience is a key chapter in this historical process, and the story of crypto is far from over.