Binance comeback: Is CZ planning a big comeback?

It would be the comeback of the year: Changpeng “CZ” Zhao, the founder and longtime CEO of Binance, could soon be back in the top chair of the world's largest crypto exchange. The rumor mill has been churning for months, and the signs are mounting, partly because his company is trying to shake off some legal shackles behind the scenes.

It sounds a bit like a Hollywood script. Changpeng Zhao, the fallen hero who sacrificed himself for the good of a greater cause, only to return triumphantly to the stage at the end. He may have initiated his own act of resurrection when he recently made a small change to his profile on the short message platform X. “ex-Binance” became “Binance.” The disappearance of the small prefix was the prelude to a wave of new speculation about his imminent return to his old stomping grounds. Perhaps it was this small change that helped the price of the in-house Binance Coin (BNB) jump above the $1,000 mark. Investors seemed to have caught on: Something's brewing here.

A Binance return full of stumbling blocks

But as euphoric as the idea may sound to some, a comeback for the Binance founder would not be easy. The reason for this is a deal the crypto exchange reached in 2023 following a long-running legal battle with the U.S. Justice Department. In return for a $4.3 billion fine and a commitment to stricter compliance requirements, the Department of Justice dropped various charges against Zhao's company.

At the time, he himself pleaded guilty to violating US money laundering laws. As a result, he resigned as CEO and began a four-month prison sentence in 2024. And even after his release, CZ is barred from holding any management positions within the company for three years, according to the agreement. This restriction expires next year.

But even if the ban has expired, Zhao's return could pose a future risk for Binance, especially if the crypto exchange follows the industry's IPO trend. CZ is a convicted white-collar criminal under US law—and that poses a regulatory risk.

Simply put: A senior executive with a relevant conviction cannot use certain capital raising procedures in the US. This would place a legal burden on private placements. And even a traditional initial public offering (IPO) would be difficult to achieve with a convicted founder at the helm – less out of legal necessity, but rather because of the political signaling effect and the massive reputational risk.

Get your head out of the noose

But CZ wouldn't live up to his reputation if he didn't seek a way out. And he seems to see his ticket to freedom in the White House. In May 2025, he and his lawyers will personally appeal to Donald Trump. The US president is expected to pardon the Binance founder, which would overturn his conviction. The odds of this happening are currently at 46 percent on the betting platform Polymarket.

However, because Donald Trump rarely acts purely out of kindness, Zhao doesn't come empty-handed. At least, that's what the Wall Street Journal wrote in an article published the same month. According to the article, CZ used his contacts to open doors for Trump's crypto project “World Liberty Financial” to financially powerful players in Pakistan, Abu Dhabi, and Kyrgyzstan. A welcome step for the “crypto president's” wealth. Both the WLFI co-founder and Zhao himself deny the allegations. The Binance founder wrote on X that it's a “smear campaign.” But question marks remain.

Two months before CZ filed his plea for clemency, CZ's crypto exchange secured a mega-investment from Abu Dhabi. The sovereign wealth fund invested $2 billion in Binance. However, the money flowed not through traditional payment channels, but via USD1. WLFI had launched the stablecoin a few weeks earlier – and has now profited handsomely from the transaction.

Whether it was coincidence or deliberate that billions in excess of USD 1 flowed to Abu Dhabi while CZ was courting his pardon in the background remains to be seen. One thing is clear: for critics, the picture is a modern-day indulgence trade – billions in fines, investor deals, and political favors are intended to erase a guilt that is far from forgotten. Whether CZ's return will therefore become the “comeback of the year” – or go down in crypto history as a dearly bought forgiveness of sins – remains to be seen.