Giggle Academy: What Former Binance CEO “CZ” Will Focus His Energy on After Completing His Prison Sentence

by

As an analyst with a background in both law and technology, I find Changpeng “CZ” Zhao’s situation intriguing. The billionaire co-founder of Binance, the world’s largest cryptocurrency exchange, was recently sentenced to four months in prison for violating anti-money laundering laws. This sentence comes despite prosecutors recommending a harsher penalty due to Zhao’s nonchalant attitude towards complying with the law.

Bilionaire CZ Zhao, the founding father of Binance, the globally dominant cryptocurrency trading platform, has been ordered to serve a four-month prison term for infringing upon anti-money laundering regulations. The verdict was delivered by Judge Richard Jones in Seattle following Zhao’s admission of guilt in November 2023.

Based on Bloomberg’s report, the prosecution suggested that Zhao be sentenced to three years in prison due to his nonchalant approach to abiding by the law. In contrast, Judge Jones handed down a lesser sentence. Regardless, Zhao will be remembered as the wealthiest individual to have served time in a US federal penitentiary. Despite his legal issues, Zhao’s estimated net worth of $43 billion, derived from his Binance ownership, remains unaffected and could even expand given the surge in crypto market activity.

Critics in the cryptocurrency sector have voiced disapproval towards the Department of Justice’s (DOJ) deal with Zhao, the founder of Binance. Dennis Kelleher, the CEO of Better Markets Inc., expressed his disagreement by suggesting that instead of reaching a settlement, the DOJ should have prosecuted and banned multiple individuals linked to Binance from the financial industry permanently. As part of the agreement, Zhao will serve a prison sentence and pay a $50 million personal fine, while Binance as a company will fork out $4.3 billion in penalties to address allegations of violating anti-money laundering and sanctions laws.

In spite of the serious accusations against Zhao and Binance, along with their confessions of wrongdoing, the crypto exchange has persisted, retaining its dominance in the market. The platform welcomed over 40 million new members in 2023, marking a 30% growth from the previous year. Furthermore, customers’ assets on Binance now exceed $100 billion. As Bloomberg rightly emphasizes, Binance’s durability can primarily be attributed to traders distinguishing the company and its leader from FTX. The latter filed for bankruptcy following the misuse of billions of dollars in users’ cryptocurrencies by its founder, Sam Bankman-Fried.

As an analyst, I’ve observed intriguing differences between the business approaches of Bankman-Fried and Zhao, two notable figures in the crypto industry. While Bankman-Fried tried to navigate through controversy by engaging in public discussions and tweets, Zhao chose a different path by acknowledging guilt, cooperating with authorities, and maintaining silence.

As I conduct my research, I’ve discovered that while Zhao serves his sentence, a US monitor will be assigned to oversee Binance’s adherence to our plea agreement for five years. This involves ensuring that the exchange implements necessary measures to comply with anti-money laundering and sanctions laws. Simultaneously, the SEC has filed a separate lawsuit against Binance and its affiliate, Binance.US, alleging they have been operating unregistered exchanges, broker-dealers, and clearing houses. This legal battle is anticipated to be protracted as Binance contests these accusations.

Regarding Zhao’s plans following his sentence, he has voiced his intent to collaborate with biotech startups in implementing blockchain technology to address health issues and grant access to medical care for the global population. Additionally, he has proposed an idea for a worldwide online primary education platform named Giggle Academy.

Yesterday, CZ wrote that the next chapter of his life (after prison) will be focused on education:

As a crypto investor, I want to express my heartfelt gratitude to each one of you for your thoughtfulness and encouragement. Your letters, comments on X, and other forms of support have been invaluable sources of strength for me during this challenging period. I assure you that I will persevere and see this phase through. Once I’ve completed my time, I will move forward to the next chapter of my life, which will focus on my education. I remain committed to this journey and appreciate your continued support along the way.— CZ 🔶 BNB (@cz_binance) May 1, 2024

Here’s what CZ said about this personal project on March 19:

We are looking for teacher(s) who can create digital content.— CZ 🔶 BNB (@cz_binance) March 19, 2024

In a document from February 2024, CZ presents his idea for a no-cost digital learning hub designed to offer underprivileged kids around the world an education that is both accessible and stimulating, with the ability to adjust to each student’s unique needs.

As an analyst, I’ve reviewed the document outlining Giggle Academy’s objectives. The academy aims to tackle the global literacy crisis, focusing on regions with the highest concentration of illiterate adults: South Asia, West Asia, and sub-Saharan Africa, which collectively house approximately 75% of the world’s 781 million illiterate individuals. My role is to help develop a comprehensive curriculum for grades 1 through 12. This curriculum will encompass essential subjects such as reading, writing, mathematics, and science. However, we plan to go beyond traditional schooling by incorporating topics like emotional intelligence, negotiation skills, and entrepreneurship.

As a researcher exploring Giggle Academy’s unique selling points, I can’t help but be intrigued by its innovative application of gamification. I firmly believe that by transforming the learning experience into an addictive and engaging process, this platform has the potential to draw in students who might otherwise miss out on high-quality education. Moreover, the concept paper underscores the significance of adaptive learning, enabling each student to concentrate on their individual strengths and passions instead of being bound by a rigid, one-size-fits-all curriculum.

At Giggle Academy, instead of granting degrees in the conventional sense, we employ a methodology that involves accruing points, progressing through levels, and earning badges to validate students’ advancements and accomplishments. These validations will be represented as Soul Bound Tokens (SBTs) on a blockchain platform, allowing future employers to effortlessly authenticate the students’ acquired abilities and knowledge.

CZ recognizes the hurdles associated with e-learning, including the absence of face-to-face peer interaction and the importance of parental endorsement. To tackle these obstacles, the system will offer social functionalities, peer tutoring sessions, and mentorship programs. Moreover, Giggle Academy intends to collaborate with businesses to offer employment prospects for learners, thereby motivating parents to encourage their children’s continued education.

As a crypto investor and follower of the latest developments in the industry, I’ve come across the concept paper for Giggle Academy, which sheds light on why its founder, CZ, chose to embark on this project. Personally, I find it inspiring that he views education as a crucial tool in tackling global challenges such as corruption, hunger, and climate change. With his extensive experience in creating successful, scalable software platforms, CZ aims to leave a lasting, positive impact on the world through Giggle Academy.

While serving his sentence in prison, CZ is already contemplating the future and exploring ways to utilize his assets and connections to bring about positive change. The Giggle Academy project embodies an ambitious plan for providing affordable and stimulating education to millions of disadvantaged children across the globe.

Read More

2024-05-01 12:27