X Restricts Changpeng “CZ” Zhao's Account

The social media account of Changpeng “CZ” Zhao, the former CEO of Binance, faced unexpected restrictions on November 23.

by Faruk Imamovic
X Restricts Changpeng “CZ” Zhao's Account
© Getty Images News

The social media account of Changpeng “CZ” Zhao, the former CEO of Binance, faced unexpected restrictions on November 23. Users of the platform, previously known as Twitter, were only able to access CZ's profile after acknowledging that it was "temporarily restricted." This development followed CZ's resignation from his role at Binance on November 21, as part of a significant settlement with United States authorities.

The platform's only explanation for the restriction implied a possible breach of its rules, leaving the specific cause unclear. Zhao, known for his active presence on the platform, speculated that the restriction might have been an automated response to his recent change of profile name from “CZ Binance” to “CZ BNB”.

He expressed his concerns about the platform's bot detection algorithm, suggesting it was flawed: “The X bot detection algo needs some work, [Elon Musk]. It doesn’t detect the bad bots, and wrongly targets the real humans”.

This incident raises questions about the social media platform's regulatory algorithms and their impact on high-profile users.

The Fallout of Binance's Legal Settlement

The restriction of CZ's account coincides with major legal developments for Binance.

On November 21, the United States Department of Justice announced a staggering $4.3 billion settlement with the crypto exchange. As part of the settlement, CZ was required to pay $150 million in relation to civil cases with regulators.

Furthermore, he pleaded guilty to a felony charge stemming from Binance's failure to maintain an effective Anti-Money Laundering program. These events mark a significant turning point for Binance, which has been a dominant player in the cryptocurrency exchange market.

Richard Teng, the crypto exchange’s global head of regional markets, has stepped up to lead the company in the wake of CZ's departure. While Teng's social media following is considerably smaller than Zhao's, the focus now shifts to how he will steer Binance through these turbulent times.

The crypto community and regulators alike will be closely watching how these developments unfold. The outcomes could set important precedents for the operation of crypto exchanges and the broader digital currency industry.