Changpeng Zhao, the Chinese cryptocurrency tycoon and founder of the world’s largest cryptocurrency exchange Binance, has emerged as the wealthiest person in Canada according to the Bloomberg Billionaires Index. However, he is currently facing a four-month prison sentence in the United States.
As of May 9, Zhao’s net worth is reported to be $40.6 billion, placing him at the 34th spot among the global billionaires. His net worth has increased by $6.26 billion so far this year.
Zhao and his family immigrated to Vancouver in the late 1980s when he was just 12 years old. His father was a university lecturer in China before moving to work at the University of British Columbia.
At the age of 16, Zhao started learning computer programming and went on to major in computer science at McGill University. In 2017, he founded Binance, which by 2018 had become the world’s largest cryptocurrency exchange, making Zhao one of the wealthiest individuals in the industry.
In March 2023, the U.S. Commodity Futures Trading Commission filed a lawsuit against Binance and Zhao, accusing the company and its founder of violating anti-money laundering regulations.
Three months later, Zhao and Binance were sued by the U.S. Securities and Exchange Commission for allegedly violating 13 securities rules.
Zhao admitted to one count of failing to implement an effective anti-money laundering program and subsequently resigned as CEO of Binance. In April this year, he was sentenced to four months in prison.
Binance agreed to pay $4.3 billion to settle with the U.S. government, while Zhao agreed to pay a $50 million fine, avoiding a potential three-year prison term sought by the U.S. Department of Justice upon conviction.
In a letter to the court, Zhao acknowledged his failure to establish necessary compliance controls at Binance as his mistake. He stated that Binance now has implemented the strictest anti-money laundering measures and expressed regret for not doing so earlier.