In a wide-ranging interview with The Block, Binance founder Changpeng Zhao (CZ) addressed several controversial topics head-on, reflecting on his journey from a 24/7 workaholic to a strategic industry enabler. The conversation, recorded in Dubai, touched on his $500 million investment in Elon Musk's X platform, his prison experience, regulatory battles in Europe, and his vision for the future of crypto.
Musk Investment and X Platform Partnership
CZ confirmed that his firm invested $500 million in Musk's $44 billion acquisition of X, emphasizing that the investment was about supporting free speech—a prerequisite for financial freedom. 'The money is only about 1% of the total, but I’m glad a crypto company could contribute,' he said. The deal, originally expected to close in May 2022, dragged on until October, during which many questioned X’s $44 billion valuation. CZ’s communication with Musk about the investment was minimal—just a dozen messages. He expressed hope that X would become a global payment platform that transcends borders, but noted that Musk told him X Money would focus on fiat currencies and not touch crypto. 'Crypto doesn't eat the existing payment pie; it makes the whole pie bigger,' CZ added.
CZ dismissed any competition with Musk over wealth or rankings. 'I’m not trying to be the richest. If you ask me how I want to be remembered, I just want to say I’ve done my best,' he said. He praised Musk for pushing multiple difficult projects and said he deserves to be the richest person. His own focus has shifted to helping other founders become successful.
Prison Survival and Philanthropy
For the first time, CZ detailed the uncertainty he faced before entering prison. 'I was told I would be the richest person ever to go to US prison, and likely a prime extortion target,' he recalled. Contrary to expectations, he joined the Pacific Islanders group for protection—advice he received from a former warden turned prison consultant, who said staying solo invites trouble. 'Once you’re in, you have no choice but to join a group. It provides protection, so nobody messes with you.' When other inmates asked about his wealth, he laughed it off: 'I don’t know what you’re talking about.'
Post-release, CZ has donated $2 million to Prison Professor, a nonprofit founded by Michael Santos—a man who served 26 years of a 45-year sentence for first-time drug trafficking and now helps inmates prepare for reentry. 'I send $500,000 every six months,' CZ said. 'It’s a great project because many prisoners spend 10 or 20 years inside, then get out and don’t even know how to use a smartphone. Without help, they re-offend.' He allowed Prison Professor to integrate Binance Academy content, bringing crypto education behind bars. CZ noted that many laws are imperfect: Santos’s crime is now legal in most states. 'I feel good about supporting him,' he added.
European Regulatory Struggle: Greece Block Is a Lose-Lose
Regarding reports that European Central Bank President Christine Lagarde pressured Greece to deny Binance’s MiCA license application, CZ said he heard similar intelligence but lacks direct proof. 'I know at least two regulators were ready to approve us, but other political factors intervened,' he stated. The result is a lose-lose: Binance withdraws its application and Greece loses a potential economic driver. CZ compared this to previous regulatory battles: Japan warned Binance in 2018, yet by 2022 Binance received a full license and returned, with SoftBank Japan as a major shareholder. In Singapore, Binance withdrew in 2021 and most users moved to FTX. 'Challenges come, politics plays a role, but over time we overcome them. Countries with forward-looking regulation will benefit; those without will correct themselves.'
AI Usage and Crypto Security
CZ revealed that his most-used AI tool is the free version of Kimi—'just because my paid quota ran out.' He uses AI to help with programming (like cleaning his Gmail) and emphasizes that AI can boost coding speed by 20-50%, but humans must review every line for maintainability. Particularly valuable: AI excels at finding security vulnerabilities. 'If we let AI audit Binance’s platform faster than attackers, we improve industry safety.' He acknowledged the risk of AI-powered attacks but recommends layered protection: hot wallets, multisig, code wallets, and isolation. 'Nothing is ever 100% safe. Big platforms have resources to invest billions in security; that’s a competitive advantage.'
Bitcoin Prediction and Views on Complex Products
CZ reaffirmed his long-term bullishness on Bitcoin, citing the four-year cycle. 'We’re in a crypto winter, and Bitcoin is down about 50% from its all-time high—that’s normal.' He predicted that if the next cycle achieves a 5x gain, Bitcoin would exceed $500,000 or $600,000; then the following cycle (around 2033) needs only a 2x to hit $1 million. He cautioned that predicting exact timelines is 'very difficult' but suggested that as market cap grows, volatility naturally declines. On MicroStrategy’s STRATEGY (STRC) derivative, CZ admitted he doesn’t fully understand the complexity. 'I’ve tried. Saylor tried to explain it to me for 15 minutes, and I nodded but didn’t really get it.' He believes Saylor is credible and a true Bitcoin bull, and he defended the company selling just 32 bitcoins out of nearly 1 million: 'When you have to pay dividends, you have to sell sometimes. People are being too harsh.'
CEA, Aster, and Competitive Rivalry
Discussing the CEA saga (where CEA stock price fell below $1, lower than the value of the BNB it held), CZ said Binance originally contributed about $100 million in BNB—roughly 20% of CEA’s funding. After the stock collapsed, several Yzi Labs members volunteered to step in, investing their own money to find a solution. 'I’m not too worried because they have skin in the game,' he noted. On Aster, a perps trading platform: CZ serves only as a product and tech advisor. 'Hyperliquid has done great, but no product stays king forever. Aster has a chance.' He reiterated his advice to competitors: focus on your own product, not on attacking rivals—'attacking competitors is childish.'
Summing up his current philosophy, CZ said he divides his time into four parts: crypto, helping other founders, driving industry growth, and personal life. He reflected that Binance’s success came from prioritizing user protection over short-term profit—citing an early example where Binance used 40% of its 15-million reserve to return fiat to users during China’s forced exit. 'Long term, that trust pays off more than any short-term fee income.' When asked how he wants to be remembered, CZ smiled: 'President Trump called us crypto guys. I hope people remember me as a crypto guy.'