Site iconSite icon ForkLog

CZ’s autobiography: a call from Sam Bankman-Fried and a run-in with Gary Gensler

ForkLog
CZ’s autobiography: a call from Sam Bankman-Fried and a run-in with Gary Gensler

On 8 April, Binance founder Changpeng Zhao (CZ) published a book, Freedom of Money. It recounts the exchange’s creation, his imprisonment, the collapse of FTX and a curious episode involving former SEC chair Gary Gensler. 

CZ said he would donate all proceeds from the book to charity. 

The foreword is by Binance co‑founder Yi He, who has worked with Zhao since 2014. She now serves as co‑CEO alongside Richard Teng. 

The memoir’s theme is in the title. To Zhao, the freedom of money lies in cryptocurrencies’ ability to remove barriers to financial access, especially in regions with weak banking infrastructure or tight capital controls.

The text is interspersed with photographs from Zhao’s archive: from the family’s move to Vancouver and his first computer to shots with Vitalik Buterin and the exchange’s hurried relocation from China after the crypto ban.

His account of FTX’s collapse

CZ says that in November 2022, during a phone call before Binance’s attempt to acquire FTX, Sam Bankman‑Fried asked him for “a couple of billion dollars”. 

According to the Binance founder, the request was casual, “as if it were about a ham sandwich.” Zhao had not intended to do a deal; the letter of intent was merely a formality to assess the situation and protect users.

“I had zero desire to own FTX. I wasn’t particularly concerned about helping Sam Bankman‑Fried either. But I thought we might have to step in to protect users and the industry,” he added.

Changpeng Zhao and Sam Bankman‑Fried. Source: X.

In CZ’s view, the trigger for FTX’s demise was a public statement by Caroline Ellison, the former head of Alameda Research. He called her offer to buy Binance’s FTT holdings at $22 to stabilise the market a fatal mistake.

By revealing a support level, Ellison prompted professional traders to short below it. The token fell to $15, then $5. Within 72 hours, $6bn was withdrawn from the exchange.

CZ also described an Exchange Collaboration group chat on Signal. It was created by FTX employee Zane Tackett during the Terra/LUNA crash. Besides Zhao and Bankman‑Fried, Coinbase chief executive Brian Armstrong and Kraken’s Jesse Powell were in the group. 

The chat later drew interest from the Department of Justice and the SEC.

“They were looking for any hints of collusion or manipulation among exchanges. Of course, in our case there was nothing of the sort,” CZ said. 

On 9 November Binance walked away from the deal. The platform’s FTT holdings, once valued at $580m, were wiped out. Zhao likened it to losing $1.6bn on LUNA investments six months earlier.

A run on the exchange followed: on 14 December $7bn was withdrawn in a day. CZ admitted he was worried, even though all user funds were in reserves. Within a month, clients returned deposits, surpassing previous levels.

A run‑in with the SEC chair and “behind‑the‑scenes” feuds 

In 2019 Zhao met Gary Gensler, then a former CFTC official, and offered him an advisory role at Binance, which he declined.

By then, Gensler already planned to lead the SEC, which he later did. Notably, it was during his chairmanship that the regulator sued Binance, and Zhao served a four‑month sentence in a US prison.

CZ also writes that Huobi founder Li Lin told him in 2025 he had been arrested because of a tip‑off from OKX founder Star Xu. Xu denied it. 

“After four months in prison, this man continues to spout nonsense to the world. I can only say: for someone used to lying, true nature never changes,” Xu said. 

Zhao also recalled that in May 2015 the head of OKX publicly alleged forged signatures in contracts. The accusation, which CZ rejected, dealt a serious blow to his business reputation, the book says. In response, Xu again posted to back up his claim. 

Earlier, in an interview with Colin Wu, Zhao spoke about his childhood, moving to Canada and Binance’s rise. 

In March 2026, a US court dismissed a lawsuit against the exchange and CZ over terrorism financing. 

Exit mobile version