From No Electricity to Building Binance: The Extraordinary Journey of CZ

Binance founder Changpeng Zhao (CZ) recently opened up in a rare interview, sharing his inspiring story of growing up in poverty, becoming a tech prodigy, and ultimately building the world’s largest crypto exchange. He also addressed his recent legal troubles in the U.S. and offered his perspective on Bitcoin’s future and Binance’s path forward.

From Rural Hardship to a New Start in Canada

CZ was born in a rural village in China where his family lived without running water or electricity—he studied under an oil lamp, and his mother walked 300 meters daily just to fetch water. At age 12, his family immigrated to Canada in search of better opportunities. Despite hardships, his parents taught him the importance of saving and staying debt-free.

A Young Math Whiz Who Skipped Grades

In Canada, CZ excelled academically, ranking among the top 100 in national math competitions. He was so advanced in math that even when he had to repeat a grade after moving, he was already working at a high school level while still in elementary school.

“My math was already at a high school level.”

He enrolled at McGill University but never graduated. During an internship in Tokyo, he performed so well that his employer offered him a full-time position, launching him into a successful early career building financial systems in Tokyo, New York, and Bloomberg.

All-In on Bitcoin at 35: “I Couldn’t Miss This”

CZ first discovered Bitcoin in 2013, when it was trading around $70. As it soared to $1,000 within months, he decided to go all-in—he sold his apartment, quit his job, and dedicated himself entirely to crypto. He recalls buying BTC at an average price of $600.

“It dropped to $200, but I didn’t sell for two years.”

When his mother scolded him for leaving a secure job at Bloomberg, he replied:

“I just believed earlier than others. Bitcoin is the future of finance.”

From Software Provider to Founder: The Birth of Binance

Initially, CZ tried to open a Bitcoin exchange in Japan but couldn’t secure funding, so he pivoted to selling exchange software (B2B). Then came 2017’s ICO boom in China. When the government banned crypto trading, CZ’s 30+ exchange clients disappeared overnight. Instead of giving up, he decided to build his own exchange—this was the start of Binance.

Meteoric Rise: From Launch to Global #1 in Six Months

Binance launched in July 2017. Within six months, it became the largest exchange by volume worldwide. CZ recalls the day a friend messaged him, congratulating him on reaching number one.

CZ recounted:

“We went from launch to number one in the world in six months.”

During the ICO boom, Binance offered fast support and wide token listings:

“We had days when 300,000 users signed up. Our CTO was woken up by calls day and night.”

By the end of its first year, Binance had generated $1 billion in revenue, but CZ stayed cautious, reminding himself to keep reserves in case the market turned.

2019 Hack: 7,000 BTC Stolen, CZ Reassures Users

In May 2019, Binance was hacked for 7,000 BTC (then worth $40 million). Despite the crisis, CZ appeared live on air the next day to assure users their funds were safe—this birthed the meme “Funds are SAFU.” Paradoxically, the hack strengthened user trust: deposits exceeded withdrawals once the platform reopened.

Facing FTX Fallout: “I Didn’t Want to Run. I Believe in the Fairness of the U.S. Legal System.”

After the collapse of FTX in 2022 shook confidence in centralized exchanges (CEXs), Binance processed over $14 billion in withdrawals in a single month — yet its systems continued to run smoothly without major issues.

In 2023, the SEC filed charges against Binance and CZ personally, accusing them of misusing customer funds. CZ recalled:

“The judge directly asked the SEC what evidence they had — and they couldn’t produce any.”

Although that case was dismissed, the U.S. Department of Justice (DOJ) later stepped in. CZ ultimately reached a plea agreement, admitting to violations of the Bank Secrecy Act (BSA). In November 2023, he voluntarily traveled to the U.S. to face trial, saying:

“I didn’t want to run. I believe the U.S. legal system still has some fairness.”

Serving Time: “I Even Started a Daily Crypto Book Club.”

Instead of house arrest, CZ was sentenced to four months in a low-security prison. He shared a cell with a convicted murderer on his first night, admitting:

“I was too scared to even nudge him awake at first — but we got along well.”

He also added:

“There was no violence in prison. I even started a crypto book club, where a few of us would discuss Bitcoin for 30 minutes every day.”

CZ said some prison staff were curious too:

“One of the guards quietly asked me, ‘Is now a good time to buy Bitcoin?’”

Looking Ahead: “We Want Binance Back in the U.S.”

Upon release, CZ expressed optimism about the future, noting he has enough resources to continue supporting new ventures. He sees a convergence between Bitcoin, AI, and blockchain use by governments as a key growth area. He emphasized his ambitions for Binance in the American market:

“We really want Binance to return to the U.S. American users spend the most, but get the least service. That’s unreasonable — and not what we want.”

Risk Warning:
Cryptocurrency investments are highly volatile and risky. You could lose your entire capital. Evaluate your risk tolerance carefully before investing.