CryptoQuant reports:
Ki Young Ju, CEO of the blockchain analytics company CryptoQuant, expressed support for Binance’s former CEO Zhao, whose four-month prison term is nearing its end. Zhao began serving his sentence in June 2024 after admitting to violations of the U.S. Bank Secrecy Act.
Ki Young-Ju’s statement acknowledged the mistakes of Binance executives while also highlighting Zhao’s contributions. “Do not underestimate CZ. He deserves respect,” he wrote, elaborating on a broader societal perspective. The statement noted that when the inherent value of an industry is lower than the capital it absorbs, society often perceives it as “evil.” In such cases, the most influential figures are often held accountable for the industry’s shortcomings.
He further explained that the cryptocurrency industry, like other young and immature sectors, also faces “growing pains,” including rampant crimes such as hacking and fraud that hinder its growth. In his view, Zhao has become a scapegoat for some of the industry’s failures, but this should not overshadow his role in its development. “While he certainly made mistakes, his detention also carries an alternative factor, representing the industry’s ongoing growing pains.” He concluded by acknowledging that without Binance, the cryptocurrency space would not have attracted the global liquidity it benefits from today.
Community Backlash
Meanwhile, following the statement, there was some backlash from the community. Ali Paul from BlockTower Capital claimed that CZ committed the same crimes as Sam Bankman-Fried, suggesting that only concerns about his ability to bribe foreign governments and the value of the information he could provide to authorities spared him from harsher penalties.
He also asserted that CZ’s actions “ruined many lives,” leading to the “disappearance” of several Binance executives and causing significant harm to the entire industry. However, Ju rebutted these accusations, stating that the exchange had never misused customer funds, and on-chain data showed differences in wallet management between Binance and FTX. He also pointed out that the exchange’s CEO was not accused of using customer funds but rather of facilitating money laundering.
“If CZ is truly the criminal you describe, even the transactions you mentioned would not have led to his release by authorities,” Ju argued. He also contended that the skepticism surrounding Binance is similar to the FUD (fear, uncertainty, and doubt) surrounding Tether, as there is no concrete evidence supporting these claims.
