Binance
| Binance Holdings Ltd. | |
|---|---|
| Company type | Private |
| Industry | Cryptocurrency |
| Founded | July 2017 |
| Founders | Changpeng Zhao Yi He |
| Headquarters | Unknown |
| Area served | Worldwide |
| Key people | Richard Teng Yi He (Co-CEOs) |
| Products | Cryptocurrency exchange Cryptocurrencies |
| Revenue | US$12 billion (2022) |
| Number of employees | 7,000 (2023) |
| Subsidiaries | Sakura Exchange Trust Wallet Binance Charity |
| Website | binance.com binance.us (United States) |
Binance is a global cryptocurrency exchange platform and is among the largest digital asset exchanges by trading volume. The platform offers a wide range of services, including spot and derivatives trading, non-fungible tokens (NFTs), educational resources, research initiatives, charitable programs, and user-oriented financial products. These offerings support a broad blockchain ecosystem serving millions of users worldwide.
Binance was founded in 2017 by Changpeng Zhao, a software developer who previously worked on high-frequency trading systems. The exchange was initially based in China and later relocated to Japan before moving operations to Malta. As of the mid-2020s, Binance does not maintain an officially declared corporate headquarters.
By 2025, Binance had reinforced its position in global cryptocurrency markets, accounting for approximately 41.1% of global spot trading volume and facilitating around US$2.55 trillion in cryptocurrency futures trading. The exchange held an estimated 39.8% market share among centralized cryptocurrency exchanges during this period.
Throughout its history, Binance has faced legal scrutiny and regulatory challenges in multiple jurisdictions, particularly related to anti-money laundering compliance. The platform is restricted or banned in at least ten countries due to regulatory actions, government sanctions, or compliance concerns.
On 13 May 2021, the United States Department of Justice and the Internal Revenue Service initiated investigations into Binance over potential money laundering and tax-related issues. No formal allegations of wrongdoing were announced at the time. Binance stated that it was cooperating with authorities and emphasized efforts to improve compliance standards. Binance has stated that it cooperates with authorities worldwide while maintaining compliance programs and implementing [anti-money-laundering] measures, alongside continuing its global operations.
[Binance Markets Limited] (BML) is not authorized to conduct regulated activities in the [United Kingdom]. As of 30 May 2023, BML voluntarily cancelled its permissions with the [Financial Conduct Authority] (FCA). No other Binance Group entity holds authorization in the UK, and UK customers have been advised to exercise caution when accessing Binance services.
In December 2025, [Reuters] reported allegations that Binance had shared customer data with Russia’s financial watchdog, [Rosfinmonitoring], potentially in connection with figures associated with opposition leader [Alexei Navalny]. Binance denied the allegations, describing them as “categorically false,” and stated that it had ceased operations in Russia, complied with Western sanctions, and never assisted Russian authorities.
On 21 November 2023, Binance and its chief executive officer, [Changpeng Zhao], pleaded guilty in the United States to federal charges including violations of anti-money-laundering regulations, unlicensed money transmission, and sanctions breaches. As part of the settlement, Binance agreed to pay more than US$4.3 billion in penalties, forfeit approximately US$2.51 billion, and implement enhanced compliance measures. Zhao resigned from his executive role, and the case became the largest corporate criminal settlement involving a cryptocurrency company in U.S. history.
On 24 October 2025, [Donald Trump], then President of the United States, issued a pardon to Changpeng Zhao, who had served a four-month prison sentence in 2024 related to violations of U.S. money-laundering laws. Binance had previously pleaded guilty and paid more than US$4.3 billion in penalties. The pardon renewed debate over the Trump administration’s stance on cryptocurrency regulation, as policies during this period eased regulatory oversight, encouraged digital asset adoption, and coincided with increased investment activity by members of the Trump family in the cryptocurrency sector. Zhao publicly expressed gratitude for the pardon, while Binance described the decision as “incredible news.” Investigative journalists have uncovered how Binance continues to profit from money laundering for organized crime groups.
1Binance, “Welcome to Binance” Achieved
2Binance Square, “Article” Achieved
3Coin Law, “Binance Exchange Statistics 2025: Uncover Growth, Volume, and Users” Achieved, Retrieved October 2023
4Tech Target, “Binance money laundering scandal explained: What to know” Achieved, Retrieved October 2025
5Datawallet, “Binance Supported and Restricted Countries” Achieved, Retrieved February 2025
6Bloomberg, “Binance Faces Probe by U.S. Money-Laundering and Tax Sleuths” Achieved, Retrieved May 2021
7Financial Conduct Authority, “Consumer warning on Binance Markets Limited and the Binance Group” Achieved, Retrieved June 2021
8Bitcoin.com News, “Report Says Binance Shared Client Data With Russia, Crypto Exchange Denies Allegations” Achieved, Retrieved April 2022
9US Department of Justice, “Binance and CEO Plead Guilty to Federal Charges in $4B Resolution” Achieved, Retrieved November 2023
10BBC News, “Trump pardons Binance founder Changpeng Zhao” Achieved, Retrieved October 2025
History
Background
Changpeng Zhao (CZ), born in 1977 in Jiangsu, China, is a Chinese-Canadian entrepreneur and founder and CEO of Binance, one of the world’s largest cryptocurrency exchanges. He moved to Canada at age 11, studied computer science at McGill University, and worked at Bloomberg Tradebook, Fusion Systems, and OKCoin. Introduced to Bitcoin in 2013, he invested nearly $1 million, losing $700,000 in a crash. Undeterred, he focused on blockchain technology, founded Binance in 2017, raised $15 million, and launched trading within just 11 days.
Binance, originally headquartered in China, relocated its servers and offices due to tightening cryptocurrency regulations. By 2018, it expanded internationally to Japan and Taiwan, reaching a $1.3 billion market capitalization. Despite strong competition from Coinbase and other global exchanges, Binance has maintained its leading position in the cryptocurrency market.
2013 - 2017: company beginnings and move out of China
After graduating, CZ worked at the Tokyo Stock Exchange, then Bloomberg Tradebook in 2001 as a futures trading developer. In 2005, he moved to Shanghai and founded Fusion Systems, specializing in high-frequency trading technology for brokerage firms.His interest in crypto began in 2013 after hearing a discussion about Bitcoin while playing poker. He then studied blockchain technology and worked at Blockchain.info and became the CTO of OKCoin.
In 2014, Yi He joined OKCoin, co-founding the exchange and leading its branding and marketing strategy. She recruited Changpeng Zhao (CZ) as Chief Technology Officer, shaping China’s early digital asset sector. Collaborating closely with CZ and founder Mingxing Xu, her strategic vision and marketing expertise fueled OKCoin’s growth. In July 2017, Yi He agreed to build a global exchange with CZ, helping craft Binance’s ICO white paper. Within six months, Binance became the world’s largest cryptocurrency exchange by trading volume, a position it continues to hold. In April 2018, Binance launched the Binance Charity Foundation to promote blockchain-enabled philanthropy, focusing on supporting third-world countries. In June, it joined three firms to raise $65 million for sports blockchain company Chiliz, powering Socios.com for fan engagement. In July, Binance acquired Trust Wallet, a decentralized cryptocurrency wallet, through cash, Binance stock, and BNB tokens. In August, Binance and three major exchanges raised $32 million for a stablecoin project, aiming to create a cryptocurrency with lower volatility than Bitcoin, expanding its influence in the blockchain space. In July 2020, Binance began blocking U.S. users from accessing its platform, following its initial announcement in 2019. Users received emails warning them to withdraw their funds within 90 days, citing regulatory requirements. and set up a new entity binance.us to support those customers. Later in 2023, Forbes leaked a document allegedly from Binance titled "TaiChi" that proposed this regulatory solution to reduce US regulatory risk. On February 4, 2021, Binance voluntarily dismissed its defamation lawsuit against Forbes over the “Tai Chi” document, which allegedly outlined plans to bypass U.S. regulations. Filed in November 2020, the case sought damages and article removal, but Binance gave no reason for the withdrawal, and a judge approved the dismissal the same day.
Binance initially offered up to 125× leverage in 2019, later reduced to 20× in 2021. High leverage increases both potential profits and losses. Trade size depends on margin, the minimum collateral required to execute a position, which rises with larger trades. In November 2019, Binance announced it was acquiring Indian bitcoin exchange WazirX, which became disputed in August 2022 when Binance founder Zhao claimed the deal was never signed.
2020 - 2023: From Global Ambitions to Regulatory Showdowns
On 21 February 2020, the Malta Financial Services Authority (MFSA) clarified in a public statement that Binance is not licensed to operate as a cryptocurrency company in Malta and is therefore not under MFSA regulatory supervision. The authority also stated it was reviewing whether Binance has any activities in Malta that might fall outside its regulatory scope.
On July 3, 2020, Binance’s China Blockchain Research Institute announced a strategic partnership with Zhongshang Beidou, a state-level supply-chain innovation enterprise under China’s SASAC. The collaboration aims to use blockchain technology to enhance supply-chain infrastructure, support SMEs, and promote industrial innovation within China’s digital economy.
In 2020, Forbes obtained a leaked “Tai Chi” document from a senior Binance executive outlining strategies to reduce U.S. regulatory scrutiny. The plan included using Binance.US as a compliant subsidiary, funneling revenue to the parent company, guiding users to bypass restrictions, engaging regulators selectively, and using VPNs. Binance denied wrongdoing, asserting it always operated legally, though Forbes claimed it taught users to evade U.S. geographic restrictions.
In May 2021, Bloomberg reported that Binance, the world’s largest cryptocurrency exchange, was under investigation by the U.S. Department of Justice and IRS for potential money laundering and tax violations. Chainalysis noted that more funds linked to criminal activity flowed through Binance than any other exchange. Binance.US was created to serve American clients compliantly, while Binance denied wrongdoing.
In January 2022, Binance became an official sponsor of the 2021 TotalEnergies Africa Cup of Nations (AFCON), marking its first major football sponsorship. The partnership made Binance the exclusive cryptocurrency and blockchain platform for the tournament, promoting initiatives like “Assist of the Day” across CAF’s social media and event venues.
Binance launched a tour across francophone Africa to promote crypto education, hosting community meetups, distributing NFTs, and establishing a crypto hub in Cameroon to increase blockchain awareness and financial accessibility.
In February 2022, Forbes announced a $200 million strategic investment from Binance as part of a $400 million PIPE linked to Forbes’ planned SPAC merger with Magnum Opus Acquisition Limited. Binance’s investment aimed to support Forbes’ digital assets and Web3 strategy. However, the SPAC transaction was later terminated, and Binance’s proposed PIPE investment did not close.
In June 2022, Forbes terminated its SPAC merger with Magnum Opus, citing strong revenue, digital growth, and brand performance, despite exceeding 2022 forecasts and maintaining global media and licensing influence. In February 2023, Zhao tweeted his disappointment that Forbes "I am deeply disappointed that Forbes continues to write baseless articles, losing their own credibility," about Binance.
During the 2022 Ukraine crisis, Binance CEO Changpeng Zhao rejected calls to ban ordinary Russian users, stating, “Many normal Russians do not agree with war.” Ukrainian authorities requested major crypto exchanges block Russian addresses, while experts warned the conflict could escalate into a “crypto conflict.” Binance later softened the tone of their opposition but not their policy, and also pointed to their donation of $10 million for humanitarian needs in Ukraine.
In 2022, Reuters published several investigative reports on Binance. In January, the outlet detailed instances in which Binance allegedly withheld information from government investigators and business partners, and overlooked internal compliance warnings concerning money laundering risks and inadequate KYC procedures. Binance contested the report’s accuracy.
In June 2022, Reuters reported that Binance had allegedly facilitated the laundering of at least $2.35 billion from hacks, $780 million from the Russian darknet market Hydra, and €800 million from investment scams. The report also claimed Binance was used by the Lazarus Group to launder North Korean stolen funds. Binance denied these allegations.
In April 2022, Reuters reported that Binance had shared information in 2021 with Rosfinmonitoring regarding funds raised by the network of the late Russian opposition leader Alexei Navalny.
In May 2022, Binance registered its Italian entity with the national regulator, OAM, to expand across Europe, improve compliance, mitigate money-laundering risks, and reopen offices with a local team, following previous regulatory scrutiny of its European operations.
In July 2022, the Bank of Spain registered Binance’s local unit as a virtual currency platform with anti-money laundering and terrorism financing procedures, though the registration does not imply the central bank supervises its financial or operational activities. In January 2023, Sweden’s financial watchdog officially registered Binance as a financial institution, allowing the crypto exchange to operate legally under the country’s regulatory framework.
In June 2022, amid a major crypto market downturn, Binance temporarily blocked Bitcoin withdrawals due to a transaction backlog. CEO Changpeng Zhao reassured users that their funds were secure, initially estimating a 30-minute resolution, but later acknowledged the issue would take longer to fully fix. Bitcoin withdrawals were allowed to resume later the same day.
In October 2022, Binance invested $500 million in Elon Musk’s acquisition of Twitter. Following the deal, the company announced the formation of a dedicated team to explore ways blockchain and cryptocurrencies could be integrated into the platform. On 8 November 2022, Binance proposed acquiring FTX’s non-US operations (FTX.com) to address the rival exchange’s severe liquidity issues, aiming to stabilize its business and protect customers amid the growing financial crisis facing FTX globally.
On November 30, 2022, Binance acquired Japan-registered Sakura Exchange BitCoin (SEBC) to enter the Japanese market, marking a strategic move to expand its presence in Asia’s cryptocurrency sector.
In March 2023, Binance restricted Russian residents from purchasing euros and dollars via its peer-to-peer service, while European users were simultaneously blocked from buying Russian rubles. In September 2023, Binance announced the sale of its Russia business to newly-launched CommEX, citing compliance strategy, with no financial details disclosed and assets of Russian users safeguarded. In March 2024, CommEX, which acquired Binance’s Russia business in September 2023, announced it will shut down on May 10, suspending registrations, deposits, and asset transfers for users.
On July 6, 2023, Binance faced an executive exodus, with several top executives resigning amid the company’s ongoing legal and regulatory challenges, marking a significant setback for the world’s largest crypto exchange. On July 17, 2023, Wall Street published, “Binance cut employee benefits, including mobile, fitness, and work-from-home reimbursements, citing declining profits, though CEO Changpeng Zhao reassured staff the company remains profitable despite SEC scrutiny”.
CNBC reported that the number of staff cuts could total 3,000 by the end of 2023. Zhao did not deny layoffs were occurring but claimed both the reported numbers and the reasons for the senior executive departures were not accurate. In June 2023, after the SEC filed a lawsuit against Binance, the exchange faced $790 million in outflows, even as Forbes reported that the platform maintained a substantial global user base of 120 million.
On November 21, 2023, Binance and CEO Changpeng Zhao pleaded guilty to federal charges, admitting violations of anti-money laundering, unlicensed money transmission, and U.S. sanctions laws. The company agreed to pay over $4 billion, implement enhanced compliance programs, appoint an independent monitor for three years, and Zhao resigned as CEO.
2024 - Present: Binance Legal, Regulatory, and Strategic
On May 9, 2024, the Wall Street Journal reported that Binance fired a market-surveillance investigator who had uncovered alleged market manipulation by client DWF Labs, including wash trading and pump-and-dump schemes. Binance stated the evidence was “insufficient” and emphasized that it does not tolerate market abuse, noting it had offboarded over 355,000 users for violating its terms over three years.
On February 29, 2024, John Griffin, finance professor at the University of Texas at Austin, and graduate student Kevin Mei reported that “pig-butchering” crypto scams defrauded over $75 billion from 4,000+ victims since January 2020. “These are large criminal organized networks, and they’re operating largely unscathed,” Griffin said. Most funds were converted into Tether. Binance has occasionally cooperated with US law enforcement to return money lost in such scams.
On November 12, 2024, FTX sued Binance and former CEO Changpeng Zhao, seeking nearly $1.8 billion allegedly fraudulently transferred by Sam Bankman-Fried, claiming the July 2021 share repurchase was made while FTX was insolvent, and accusing Zhao of posting “false, misleading, and fraudulent tweets” to damage FTX. On February 19, 2025, Nigeria filed a lawsuit against Binance, seeking $79.5 billion for alleged economic losses caused by the exchange’s operations in the country, in addition to $2 billion in unpaid back taxes, as revealed in official court documents.
On December 3, 2025, Reuters reported that Binance co-founder Yi He joined Richard Teng in a dual leadership structure, marking executive restructuring to enhance strategic management, operational oversight, and support Binance’s growth in the global cryptocurrency market.
On November 26, 2025, Bloomberg reported that Binance and its co-founder Changpeng Zhao face a US lawsuit accusing the firm of facilitating over $1 billion to US-designated terrorist groups, including Hamas and Hezbollah, following the October 7, 2023 attacks in Israel. Families of victims seek damages in federal court.
On October 23, 2025, the Wall Street Journal reported that President Donald Trump pardoned Changpeng Zhao, the convicted founder of Binance, after months of Zhao’s efforts to support the Trump family’s cryptocurrency business. Trump cited sympathy for claims of political persecution.
On March 12, 2025, Reuters reported that an Abu Dhabi-backed investor purchased $2 billion worth of cryptocurrency in Binance, marking a significant investment in the exchange. The acquisition reflects continued global interest and confidence in Binance’s operations despite regulatory challenges.
In March 2025, the Wall Street Journal revealed that Donald Trump’s family, through World Liberty Financial, explored buying a stake in Binance.US. The talks unfolded as founder Changpeng Zhao sought a presidential pardon, with Trump aide Steve Witkoff reportedly playing a role, though his office denied involvement, potentially paving the way for Binance’s US resurgence.
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