Former Binance chief Changpeng Zhao is once again in the spotlight, not for crypto innovation but for the storm of legal drama still surrounding his name.
Zhao, who left prison in late 2024 after serving a short sentence linked to anti-money-laundering violations, now claims he’s the target of extortion tied to terrorism-financing lawsuits against Binance.
In a message posted on X, Zhao alleged that one party demanded an extraordinary $4.4 billion “settlement,” warning that if he didn’t pay, fabricated media reports would surface accusing Binance of helping extremist groups. He framed the episode as part of a pattern of opportunistic lawsuits that emerged after last year’s $4.3 billion settlement with U.S. authorities.
The context for these threats is a series of civil cases filed in Washington, D.C., by families of victims of the October 2023 Hamas attacks in Israel. Plaintiffs argue that Binance facilitated transfers for Hamas and Palestinian Islamic Jihad, accusing the exchange and Zhao personally of indirectly supporting one of the deadliest assaults in recent memory. Attempts to serve Zhao electronically through social media and email were recently rejected by a federal judge, delaying his direct exposure — although Binance remains firmly entangled in the case.
Scrutiny of Binance’s past practices has only added to the controversy. Communications from as far back as 2019 showed senior staff acknowledging that militants had used the platform for small transfers. Later investigations by the U.S. Treasury concluded that Binance allowed terror groups ranging from Hamas to ISIS to move funds with insufficient oversight. These findings played a central role in the record penalties levied against the company.
For Zhao, the fallout has been personal as well as financial. He admitted to compliance failures, stepped down as CEO, and served a four-month sentence earlier this year. Yet despite the conviction, his personal fortune has continued to climb, reportedly exceeding $60 billion — a figure that made headlines during his incarceration.
Now free but still tied to Binance’s unresolved legal battles, Zhao presents himself as the target of malicious actors seeking to profit from his situation. Whether courts will ultimately shield him from personal liability remains to be seen, but the combination of lawsuits, extortion claims, and Binance’s controversial history ensures that CZ’s troubles are far from over.
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