Millions vanishing into D.C. war chests. Smear pieces lighting up Bloomberg feeds. All aimed at one target: killing Changpeng Zhao’s presidential pardon.
CZ — that’s Binance’s founder and ex-CEO — spills it in his fresh memoir. He’s not whispering; he’s shouting about U.S. exchanges terrified of Binance reclaiming American soil. And here’s the kicker: this isn’t just grudge-settling. It’s a raw expose on how crypto’s “domestic” players guard their fiefdoms like medieval barons.
Zoom out. Trump signs the pardon last October, wiping Zhao’s 2023 guilty plea for skimpy anti-money-laundering setups at Binance. Zhao does four months inside — surprise, he says — then walks. But before that ink dried, rivals allegedly mobilized.
Why Did US Exchanges Panic Over CZ’s Pardon?
Fear. Pure, market-share-gobbling fear. Zhao quotes “a few friends”: those WSJ and Bloomberg takedowns? Bankrolled by exchanges dreading Binance’s U.S. revival. “They paid millions in lobbying fees to block the pardon, in fear of business competition,” he writes flatly.
“A few friends told me that those smear articles were funded by U.S. crypto exchanges fearing that a pardon would allow Binance to re-enter the U.S. market,” Zhao wrote. “They paid millions in lobbying fees to block the pardon, in fear of business competition.”
Spot on. Coinbase lords over U.S. volumes — think 50% plus in spots. Binance.US? Hamstrung post-plea, fiat flows choked. A free CZ? That’s the global behemoth — 150 million users worldwide — eyeing a full-throttle return. No wonder the alarm bells.
But wait — Binance lobbied too. Politico digs up $450k to a Trump Jr.-linked firm. Hypocrisy? Or just crypto’s new normal: everyone hires the mercenaries.
One punchy truth: this reeks of the old telecom wars. Remember AT&T’s breakup? Incumbents lobbying to kneecap upstarts like MCI. Same playbook here. U.S. exchanges aren’t building moats with tech; they’re buying them with cash in the shadows. My bold call? If Binance cracks the U.S. code, expect a duopoly shatter — Coinbase’s throne wobbles by 2026.
How Does CZ’s Saga Reshape Binance’s US Playbook?
Post-pardon, moves accelerate. Binance.US taps Stephen Gregory — ex-Currency.com boss — as CEO. Fiat ramps back online. Deposits flow. It’s not subtle: they’re clawing market share where Coinbase fattens on regulatory complacency.
Zhao frames it bigger. U.S. as crypto hub? Sure, he says — but not if locals sabotage. His memoir nods to Ray Dalio’s blurb: CZ as bold pioneer democratizing “alternative monies.” Divide’s stark: regulator’s villain, innovator’s hero.
Dig deeper — why now? Trump’s win flips scripts. Pro-crypto vibes in D.C. mean lighter touch. Binance.US stabilizes amid FTX ghosts fading. Yet Zhao’s tale warns: competition’s feral. Smears, lobbies — that’s the architecture shift. Crypto’s maturing from wild west to Washington-infested boardroom.
Look, Zhao’s no saint. AML lapses real; plea proves it. Prison stint? Harsh, yeah — but past cases often dodged bars. Still, his spin lands: rivals didn’t just compete; they colluded via proxies.
And the media angle? WSJ, Bloomberg — outlets we trust — painted as puppets? Bold. Unproven, sure. But friends’ whispers add smoke. Fire? Investors sniff it.
Does This Expose Cracks in America’s Crypto Fortress?
Absolutely. U.S. exchanges thrive on moats: licenses, trust, inertia. Binance? Global scale, low fees — kryptonite. Pardon lifts bans; re-entry beckons. Coinbase stock dipped on rumors — markets buy the fear.
Broader why: policy’s weaponized. Lobby dollars dictate who plays. Zhao’s memoir — timed post-election — pressures. It’s chess: position Binance as victim, rivals as cartel.
Critique time. Corporate hype? Binance.US growth real, but CZ’s victim narrative glosses their own sins. Prison wasn’t “surprise”; plea deal spelled it. Still, unique lens: this mirrors Big Tech’s antitrust ghosts. Google lobbies against TikTok; here, Coinbase vs. Binance. Prediction: SEC scrutiny spikes on U.S. players if Binance sues or leaks docs.
Testimonials buffer: Dalio’s praise underscores split perceptions. Access vs. compliance — eternal crypto tension.
Evolving sector? Under scrutiny, yes. Zhao adds fuel: competition’s not code; it’s Capitol cash.
🧬 Related Insights
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Frequently Asked Questions
Did US crypto exchanges really spend millions to block CZ’s pardon?
CZ claims it in his memoir, citing friends and smear patterns. No hard proof yet — but Politico confirms Binance’s own $450k lobbying push. Smells like mutual mudslinging.
What does CZ’s pardon mean for Binance in the US?
Frees Zhao to advise; lifts re-entry hurdles. Binance.US ramps fiat, hires talent — eyeing Coinbase’s dominance. Full comeback? Watch 2025 regs.
Is Binance set to dominate US crypto again?
Maybe. Global muscle helps, but U.S. compliance walls high. Rivals’ panic suggests yes — if lobbies falter.
