The Paradox of CZ's Fortune and Legal Woes

Binance's CZ is reported to be the 24th richest person according to Forbes based on the size of BNB tokens he owns. If the 64% of BNB tokens owned by CZ are added up, the 94 million BNB will reach 56 billion USD. In addition to this, CZ's total stake in the Binance exchange is at 90%.

The increase in the price of BNB can be considered phenomenal. Imagine a 1.4M plus % appreciation in just seven years of existence. The 3,540% return of the S&P500 throughout its existence is nothing compared to the performance of the BNB.

What's the point of being a billionaire if you're in jail? Anyhow, four months just seems so short. Soon, everything will return to business as usual.

I don't know what happened to CZ and why he was imprisoned in California. I just found out that his case is related to money laundering.

I asked the bot why CZ was imprisoned. AI answers that CZ is not in jail. Anyway, chatgpt's data is late so he can't tell if CZ is in jail or not. The bot's advice is to verify the information in the official announcements to know the latest happenings.

Looking for confirmation, I came across this CNBC article. It was published last April 30 this year. Besides the money laundering violation, CZ has stepped down from his post as CEO of Binance. This is part of the agreement with the US Justice Department. This article also confirmed that CZ's estimated stake in Binance is 90%.

I would like to note two things:

First, the percentage of BNB tokens held by CZ is very large. That is, with the size of his holdings, he can influence the direction of the token in the way he wants. Here on Hive, if I am not mistaken though no whale holds 10% of HIVE tokens and yet there are allegations that Hive is not truly decentralized and is instead ruled by an oligarchy. How about in the case of BNB which 65% is owned by a single individual, what kind of tokenomics is that? If the distribution of 20% of the total Pi token to the core team in Pi Network is already a big issue, how much more in the case of BNB?

Second, it is very alarming that the government knows the identity of a CEO behind a crypto exchange like Binance. Imagine the US government wants CZ to pay 4.3 billion USD "in fines and forfeiture." What will the government do with the huge fines they would get from CZ? In the first place, how did CZ's crypto assets grow? What I understand about this action on the part of the US government is that the latter is like a syndicate that is angry when someone becomes a billionaire in crypto, and yet, the government also wants to get their share of such “plunder.” If this is done by a private person against his neighbor, it is called theft. But when the government does it, we call it justice.

Si CZ ng Binance ay iniulat na 24th richest person ayon sa Forbes base sa size ng BNB tokens na pag-aari niya. Kung susumahin ang 64% ng BNB token na pag-aari ni CZ, ang 94 million BNB ay aabot sa 56 billion USD. Dagdag pa dito, ang total stake ni CZ sa Binance ay exchange ay nasa 90%.

Ang pagtaas ng price ng BNB ay maituturing na phenomenal. Imagine a 1.4M plus % appreciation in just seven years of existence. Ang return ng S&P500 3,540% throughout its existence ay hindi maaaring ihambing sa performance ng BNB.

Ano ang silbi ng pagiging bilyonaryo kung ikaw ay nasa kulungan? Kung sabagay, mukhang napakabilis lang ng apat na buwan. Sa lalong madaling panahon, ang lahat ay babalik sa dati.

Hindi ko alam kung ano ang naging kaso ni CZ bakit siya nakulong sa California. Ngayon ko lang nalaman na may kinalaman ang kaniyang kaso sa money laundering.

Tinanong ko si chatgpt kung bakit nakulong si CZ. Ang sagot ng AI wala raw sa kulungan si CZ. Kung sabagay, late ang data ni chat gpt kaya hindi niya masabi kung nakakulong nga si CZ o hindi. Ang advice ni chatgpt ay i-verify ang information sa mga opisyal na announcement para malaman ang pinakalatest na mga pangyayari.

Source

Sa paghahanap ng kumpirmasyon, nadaanan ko ang cnbc article na ito. Ito ay napublished last 30 April this year. Bukod sa violation sa money laundering, si CZ pala ay bumaba sa kaniyang puwesto bilang CEO ng Binance. Ito ay bahagi ng kasunduan sa Justice Department ng US. Nakumpirma rin sa article na ito na 90% ang estimated na stake ni CZ sa Binance.

Dalawang bagay ang nais kong pansinin:

Una, napakalaki pala ng percentage ng BNB na hawak ni CZ. Ibig sabihin, sa laki ng kaniyang holdings, maaari niya itong maimpluwensiyahan sa direksiyon na nais niya. Dito nga sa Hive na kung hindi ako nagkakamali ay walang sinumang whale na umabot sa 10% ang hawak na HIVE token ay mayroon ng mga paratang na ang Hive ay hindi totoong decentralized at sa halip ay pinaghaharian ng oligarchy, how much more sa BNB na 65% ay pag-aari ng isang tao? Kung sa Pi Network nga malaking isyu ng masasabi na ang 20% ng token ay mapupunta sa Core Team, gaano pa kaya sa BNB?

Ikalawa, lubhang nakakabahala nga na batid ng gobyerno ang identity ng isang CEO sa likod ng crypto exchange katulad ng Binance. Imagine ang gusto ng US government magbayad si CZ ng 4.3 billion USD “in fines and forfeiture.” Saan naman dadalhin ng gobyerno ang makukuha nila kay CZ? And in the first place, paano lumaki ang crypto assets ni CZ? Ang basa ko sa ganitong aksiyon ng gobyerno ay parang sindikato na nagagalit na may nagiging bilyonaryo sa crypto pero gusto rin ng gobyerno na makakuha ng kanilang parte sa kayamanang ito. Kung yan ay gagawin ng isang pribadong tao laban sa kaniyang kapwa, pagnanakaw ang tawag diyan. Pero pag gobyerno ang gumawa, ang tawag ay hustisya.

References:

Former Binance CEO CZ reportedly owns 64% of BNB supply

Binance founder Changpeng Zhao sentenced to 4 months in prison after plea deal

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