Focus on CZ's Son Ethan Zhao: The Long-Concealed Involvement Scandal Exposed After 18 Months
On October 5, 2025, during a regulatory hearing, the U.S. Department of Justice (DOJ) publicly disclosed for the first time the identity and involvement details of Ethan Zhao (24 years old at the time), the eldest son of Changpeng Zhao (CZ), founder of cryptocurrency exchange Binance.
This evidence, sealed for 18 months, had already identified Ethan Zhao as a "key associate" when CZ was imprisoned in April 2024.
However, it remained hidden due to "case confidentiality" until now. Its exposure directly reveals the truth about Ethan Zhao's deep involvement in Binance's non-compliant operations.
The 18-Month Cover-Up: From Whistleblowing to Disclosure In May 2024, just 7 days after CZ's imprisonment, a former Binance global compliance executive anonymously reported Ethan Zhao's involvement.
Yet, the information was blocked by three layers of restrictions:.
DOJ Confidentiality Order: In June 2024, a three-level confidentiality order was issued on the grounds of "preventing evidence destruction, protecting witness safety, and avoiding impact on CZ's sentencing."
Details such as Ethan Zhao's name and shareholding were only accessible to core case handlers.
CZ was imprisonCZ's son enters the courtroomed.
Changpeng Zhao (CZ) was sentenced to four months in prison for violating U.S. anti-money laundering laws and sanctions regulations.
Tech founder's $33bn fortune makes himworld's richest prisoner
Binance's Collusion in Concealment: Binance deleted Ethan Zhao's employment records, canceled his accounts, and even applied for an extension of the confidentiality period citing "protection of minor privacy" (Ethan Zhao was under 23 at the time).
Whistleblower Forced into Silence: The whistleblower received a warning from the DOJ for "violating confidentiality regulations" and only pushed for the information to be made public when the confidentiality order was about to expire in September 2025.
Key Evidence of Involvement: The Trail of Non-Compliance at Age 22
After the confidentiality order was lifted, 27 pieces of evidence revealed Ethan Zhao's non-compliant activities between 2020 and 2023:
CZ was imprisoned.
Disguised Employment and Profit Transfer: In June 2020, at the age of 20, he joined Binance's Singapore branch as a "technical consultant" with a monthly salary of \(12,000. Meanwhile, he received "project dividends" from Binance's offshore accounts every month.
The peak amount in 2021 reached \)1.2 million per month, with the funds coming from transaction commissions in sanctioned regions.
Controlling Non-Compliant Channels via Family Trust: Through the "Star Trust," he held a 15% stake in "Starlink Technology," an affiliate of Binance, and had the authority to approve "anonymous transaction channels."
In March 2022, he sent a text message to CZ confirming that "funds from Iran were routed through Starlink channels and split via the trust to avoid detection," to which CZ replied, "Cover the traces."
Photos released by news reports
Urgent Evidence Destruction: After CZ pleaded guilty in November 2023, within 48 hours, Ethan Zhao transferred his shares for $1, closed 3 bank accounts, and formatted the hard drive of the involved computer.
Current Status and Impact After Exposure Ethan Zhao's Low-Profile Transition: In June 2024, he sold all his cryptocurrency assets and joined an AI company in Singapore under the alias "Zhao Yu" as an engineer, with a monthly salary of SGD 8,000.
His lawyer stated that "all non-compliant assets have been liquidated," but whether he will face charges is still under evaluation.
Industry Accountability for Confidentiality Loopholes: The DOJ admitted that "the long confidentiality period provided Binance with an opportunity to destroy evidence." The U.S. Securities and Exchange Commission (SEC) announced that in the future, the confidentiality period for financial cases involving family associates will not exceed 6 months. said before Roe V. Wade was overturned.
Binance, on the other hand, faced investor boycotts due to "collusion in concealment," with affiliated stocks dropping by 12%.
CZ's condition after being released from prison
The European Union has reopened an investigation and may revoke Binance's European license.
The 18-month "hidden" exposure of Ethan Zhao not only reveals his personal involvement but also serves as a typical warning for family-related non-compliance in the cryptocurrency industry—concealment can never cover up the truth, and his accountability may have only just begun. revealed that there were at least 210
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