Changpeng ‘CZ’ Zhao, the founder and former CEO of Binance, has responded to a growing rumor that he secretly works for the US Federal Reserve and never served jail time. The claim gained traction after a Chinese influencer made the allegations public during an X Spaces talk that attracted thousands of listeners.
Binance Founder Debunks Federal Reserve Ties
As the Binance founder revealed on X, the story originated from a Chinese influencer using the X handle Liangxihgui. In a detailed post, the influencer alleged that CZ’s legal troubles in the United States were staged and that he serves as a covert operative for the US Federal Reserve.
The message sparked intense interest online, drawing in an audience of 119,000 listeners on the X Spaces.
In response, CZ posted on his X account to publicly dismiss the claims. He shared a screenshot of the original message and stated that, while the story was amusing, it was completely false.
He clarified that he did serve a four-month prison sentence in the United States, from May to September 2024, for violations related to anti-money laundering laws. After his release, Changpeng Zhao shared some key moments from prison.
WSJ Smear Job and the CZ Response
It is worth noting that before this, CZ addressed another circulating rumor.
This one claimed he had worked with the US Department of Justice to target fellow crypto figure Justin Sun. A report by the Wall Street Journal alleged that Binance executives were negotiating a regulatory return to the US while working with the DOJ to obtain evidence against Sun.
The Binance Founder dismissed the claims as a smear campaign and accused the media outlet of being paid to spread false information about him. He reminded the public that he had served prison time. Justin Sun also came to his defense, stating that he was unaware of the rumor.
Meanwhile, CZ mentioned that such rumors are not new and often come from influencers trying to grow their follower base. One of his followers joked that if the Binance founder worked for the Federal Reserve, Bitcoin’s price would be at an all-time high.
Changpeng Zhao Shifts Focus to YZi Labs and Giggle Academy
Since leaving prison and stepping down from his role as Binance CEO, CZ has shifted his focus to new ventures. As reported earlier by CoinGape, he is now working in a key leadership position after Binance Labs rebranded to YZi Labs.
In addition, he has also been building Giggle Academy, an educational platform for students.
The project was first announced before his prison sentence, and the app for younger children went live in December 2024. CZ has said he will dedicate the coming years to this educational effort.
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