CryptoQuant CEO Ki Young Ju Backs Former Binance CEO Changpeng Zhao As Launch Approaches

Ki Young Ju, the CEO of blockchain analytics firm CryptoQuant, has voiced his support for former Binance CEO Changpeng Zhao (CZ) as his four-month prison sentence nears the conclusion

Zhao began serving his sentence in June 2024 after admitting to violating the US Bank Secrecy Act (BSA).

Statement by Ki Young Ju

His guilty plea involved failing to prevent money laundering at Binance, which resulted in a $4.3 billion penalty for the company and a $50 million fine for Zhao himself. His imprisonment, which began in June 2024, will end on September 29.

In a recent statement published on X, the CEO of CryptoQuant acknowledged the mistakes of the Binance executive while highlighting his contributions. “Don’t underestimate CZ. He deserves respect,” he wrote, elaborating on the broader societal perspective.

The statement noted that when the intrinsic value of an industry falls short of the capital it has absorbed, society tends to see it as a “sin”. In these scenarios, the most influential figures are usually held responsible for the shortcomings of the sector.

He further explained that the crypto sector, like other young and immature ones, has faced its share of “growing pains,” including rampant crimes like hacking and fraud, which have hurt its growth. In his view, Zhao has become a scapegoat for some of the industry’s shortcomings, but that should not overshadow his role in its development.

“While he has certainly made mistakes, there is also a vicarious element to his arrest, representing the growing pains of the industry.” He concluded by acknowledging that without Binance, the crypto space would not have attracted the global liquidity it benefits from today.

Community reaction

Meanwhile, there has been some backlash from the community following the statement. BlockTower Capital’s Ari Paul alleged that CZ committed the same crimes as Sam Bankman-Fried and was only spared a harsher sentence because of fears about his ability to bribe foreign governments and the value of the information that he could provide to the authorities.

He also claimed that CZ’s actions had “ruined many lives”, led to the “disappearance” of several Binance executives, and caused significant damage to the industry as a whole.

However, Ju has dismissed these accusations, stating that the exchange never used customer funds and that on-chain data shows the differences in portfolio management between Binance and FTX. He also noted that the CEO of the exchange was not charged with using customer funds, but with encouraging money laundering.

“If CZ was really the criminal you are suggesting, the authorities would not have released him, even if a deal had been offered, as you mentioned.”

Ju also argues that the suspicion surrounding Binance is similar to the FUD (fear, uncertainty, and doubt) surrounding Tether, as there is no conclusive evidence to support the allegations.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!