Former CEO of BitMEX, expressed his support for CZ, stating that the penalties applied to Binance reflect an institutional prejudice against the transformative effects of cryptocurrency and blockchain technology.
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In his latest article published on his Substack account, former BitMEX CEO Arthur Hayes, argues that the reason why Binance and its founder Changpeng “CZ” Zhao’ are treated like they are in the US, is because cryptocurrency exchanges – and other central exchanges – pose a threat to the traditional American-led global financial system.
Last week, Binance and Zhao, were accused of violating sanctions and money transfer laws, agreed to pay a fine of 4.3 billion dollars, and this situation led Zhao to resign from his CEO position. The court determined that Zhao is at risk of fleeing and decided that he needs to stay in the US until the beginning of next year.
Former CEO of BitMEX Arthur Hayes, in his writing, emphasized the “arbitrary nature of state-handled punishment” and stated that the penalties given to Binance and CZ are “absurd” compared to the penalties applied to large traditional financial institutions.
Making reference to the 1Malaysia Development Bhd. (1MDB) scandal that emerged in 2015, he asked a question as, “Did former Goldman Sachs CEO Lloyd Blankfein get the same treatment about how Goldman Sachs under his administration helped Malaysian Prime Minister Najib Razak and financier Jho Low to steal over 10 billion dollars?” He reminded particularly that Goldman Sachs was fined 2.9 billion dollars in 2020.