Ki Young Ju, the CEO of blockchain analytics firm CryptoQuant, has expressed his support for former Binance CEO Changpeng Zhao (CZ) as his four-month prison sentence nears its conclusion.
Zhao began serving his sentence in June 2024 after admitting to breaches of the US Bank Secrecy Act (BSA).
Ki Young Ju’s Statement
His guilty plea involved not preventing money laundering on Binance, resulting in a $4.3 billion penalty for the company and a $50 million fine for Zhao himself. His imprisonment, which started in June 2024, will end on September 29.
In a recent statement posted on X, the CryptoQuant CEO acknowledged the Binance executive’s mistakes while also emphasizing his contributions. “Don’t underestimate CZ. He deserves respect,” he wrote, elaborating on the broader societal perspective.
The statement noted that when an industry’s intrinsic value falls short of the capital it has absorbed, society tends to view this as a “sin.” In such scenarios, the most influential figures are often held responsible for the industry’s shortcomings.
He further explained that the crypto sector, like other young and immature ones, has faced its share of “growing pains,” including rampant crime like hacks and frauds, which have hurt its growth. In his view, Zhao has become a scapegoat for some of the industry’s failings, but this should not overshadow his role in its development.
“While he has certainly made mistakes, his detention also carries a vicarious element, representing the industry’s growing pains.” He concluded by acknowledging that without Binance, the crypto space would not have attracted the global liquidity it benefits from today.
Community Backlash
Meanwhile, there has been some backlash from the community following the statement. BlockTower Capital’s Ari Paul alleged that CZ committed all the same crimes as Sam Bankman-Fried and that he was only spared a harsher sentence due to fears of his ability to bribe foreign governments and the value of the information he could provide to authorities.
He also claimed that CZ’s actions had “ruined a lot of lives,” leading to the “vanishing” of several Binance executives, and had caused significant harm to the industry as a whole.
However, Ju has countered these accusations, stating that the exchange never used customer funds and that on-chain data shows the differences in wallet management between Binance and FTX. He also pointed out that the exchange’s CEO was not charged with using customer funds but rather with abetting money laundering.
“If CZ were truly the criminal you’re suggesting, the authorities wouldn’t 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 accusations.
