"The guards in prison asked me what coin to buy" | CZ Interview

Yeah, it's good to see a lot of familiar faces. Yeah. Thanks for being here.

So, cz, honored to be here. First question, how was your summer?

Much less work to do. So pretty relaxed, right?

Well, today I want to get into binance. I want to get into what's next for you. Maybe a little crypto talk. But before that, just the elephant in the room. I want to learn about your experience. By the way, I'm Austin of Altcoin Daily. Cz, your first interview back, what was your experience like in prison?

It's not good. It's less fun than now. So I think the whole experience is just very limiting in a lot of ways. So your freedom is leading away and you have nothing to do. So it gives you a lot of time to reflect. I actually learned about a really important lesson. For example, what everything is taken away from you. What do you miss the most? What I found is actually the human connection that I miss the most. So I miss my kids, my family, my friends, my colleagues and the community. So there's a lot of other things I miss, but not nearly at the high level of degree that I miss the people. So you miss the food, you miss the nice bed. So but those things, you know, they don't bother me that much. So I think it helped me to refocus my priorities in life.

Do you think it was a fair sentence?

Oh, so that's a very subjective one. If you ask opinions from anybody, they all say different things. Right. So I think, well, let me caveat with a couple conditions. So there's a plea agreement which I agree to and I'm in part of the plea agreement. I cannot say anything bad about the plea agreement and I don't intend to. I think, look, you enter into a deal and that's the deal suffering from that. There's the sentencing which I got foremost for incarceration. And then there was the process going through the prison experience. So in terms of sentencing, the judge has a really tough job.

Right.

So if you ask one side, they will say no, it's too lenient. If you ask the other my side, it'd be like too harsh. I don't care. I don't think about it's fair or not. So I can give you a couple of data points for people to benchmark. Before this particular violation, which is a banking secrecy act violation, we didn't register a financial company in the US when we had US users and we failed to implement an adequate anti money laundering program for this particular violation. No one ever went to jail. For a single lineage, which is my chart. So I'm the only one who went to jail for this in US history. And just two weeks ago there was a TD bank got fined, fined for like 1.8 billion. And when I was reading that there were cases, I think you described that there were executive taking money to facilitate transactions and no one was maimed, just the company was fined 1.8 billion. But you know, fair or not, that doesn't matter that much. And then the judge also said a bunch of really nice things about me in court, right? So he said, look, he'd never seen that many support letters, seemed like a nice standing guy. But then he said he did not have to follow president. That's when I knew things were not good. But then when I got into prison, I found out actually four months is a really short sentence. Everyone there, everyone else there is like 5 years, 10 years, 15 years, 8 years, they're all in years, but nobody gets a few months of sentence. So from that perspective, I was pretty lucky. So I think in the judge's mind, he treated me very so again, it's a very subjective opinion. I try not to think about it. I think everyone here will have their own opinions. But I just want to move on. I think it is what it is. I did the time, I addressed it, I just took it head on and now I can move on.

Let's talk about Binance. Two final questions on this though. Just a personal question I had. Do you make friends when you're in there or it's just.

Yes. So you pretty much have to make friends. Otherwise if you're alone, if you have no community, then you get. You are not enough. Well, I think so. No financial advice guards, you fraud. Coinbase. Actually, I do have a couple of guards recognize me and then ask me like, what coin should I buy? I'm like, I better not take the wrong coin. No, I told them, look, I'm from inside, I don't have any access to information, so there's no Internet. All my information is through like some limited length messages my friends and family send me. And we don't talk about crypto. So I did get a few guys asked, I did get a few guards ask me that. I did make a couple of friends who I still keep in touch with. So. But everywhere you go. So to be honest, I think they're very nice people in prison. So people are very chill, I think. To be honest, I think a decent portion of them had no reason to be there. So they were in there for the Wrong reason. They're super nice guys. They may have stepped in some area here or there, but some of them are for very minor violations, and they're there for a very long time. Many of them are there for like 8, 10 years for very minor offenses. So some of them for the ones that supposed to be there, many of them are there for way too long. But in prison, they're very nice people. I didn't have any trouble from any of the inlays. Some of the guards treat us a little bit harshly, but also didn't have any issue from any guards. So from that perspective, I was very lucky that there was no physical harm. I was never extorted before I went in. My prison consultants, and that's the industry, prison consulting. In the US alone, there's 2 million people in prison. It's one of the highest prison population per capita prison populations, right? So this is a burgeoning industry. It's growing when it's supposed to be shown to me, right? So. And the prison consultants, like, look. And right before I went, like, there was news reports of I'm gonna be the richest person ever to be in prison. So that only helped me from a safety perspective. But I think the journalist doesn't care. They just want a quick buck. But my prison consultants, like, scared me, like, saying, look, you don't deposit too much money on your Compass Area account. Just deposit 50 bucks, right? And then when I go there, every other guy had, like 200 bucks on the hotel. I'm the poor guy. So overall, no issues. And I met a few friends who I still keep in touch with, and I'm trying to help a few of them to fight their case through legal means, hopefully to get them out earlier. And some of the guys there, you know, one guy, I think Michael is probably somewhere. Yeah, Michael's right there. So Michael sandals, he did 27 years in prison for moving some marijuana 40 years ago. But now marijuana is, like, legal. And then he also got a university degree. While he was in prison, he wrote six books. So there are guys who, like, really, really push. And it's a very difficult environment to do that. I get access to a computer for 15 minutes each time, and then every 15 minutes, I get kicked off. And then within that 15 minutes on that computer, there's no cut and paste. There's no paste function. So whatever. If I write a paragraph and I move to one paragraph to on top of the other, I cut it out. I have to retype everything.

So.

The tools in Michael Santos days, they don't even have computers. But there are a lot of people who are there buying books, reading, learning daily degrees, et cetera. So there are a lot of really nice people there.

Cz My brother and I have been at this conference, Binance Blockchain week for two days now. The energy is electric. I'm going to talk about Binance and the biggest question on everybody's mind is what is your relationship with Binance now?

So yeah, so I have stepped down from the CEO role. I am not supposed to be involved in any day to day operations of the company. My shareholder rights as far as know I'm not impacted. So I'm still today I'm still a large shareholder of finance. I believe I can still request for information, et cetera. I just cannot make decisions or give orders. So. And the relationship is actually a pretty good one given that now there's a bunch of other guys working really hard and I'm forced to retire. So when that first happened, the first month was a bit difficult. You know, it was emotional, it was difficult to detach as a company that I put my heart and soul in and for seven years etc. But I always thought the CEO should not be on the post for more than 10 years because the world changes right now there's new AI. I didn't spend a lot of time learning about AI before. I didn't have a lot of time to look at even Defi in a lot of detail. So now I actually have more time to look at all of those stuff. So I think it's good that looking back now there's a lot of good stuff about being forced to step down. See if I step down myself, if I say hey look guys, I'm quitting, a bunch of you guys will be pissed off. And it's like this guy ran out of stamina and so now I'm forced to step down. And so I'm like well this is not my choice. But actually now I have a lot of time and also just looking back, right I think I'm actually very, very fortunate for a number of reasons. I still have a little bit of funds left to deploy to be able to do stuff. So. So that's a smart inhibitor. I think my reputation has changed but in the I'm not trying to minimize those things. So I think that's a serious violation is a series of things. But it's also validation that there's no fraud, there's no users lost money with us. So that's in some regards like I believe if you ask anybody in the room that my reputation is still pretty strong. And then on top of that, as I said now, I'm really lucky that I actually have a lot more to find now. And I'm not super young, I'm not very young, but I'm also not super old. So I still have energy to do more stuff. So very few people are in this fortunate position to be able to do these things that I can do now.

I read a headline that there's a lifetime ban on managing any crypto exchange. Is that true? And will you still be investing in crypto? Crypto projects?

Sure. So there's two. Yeah. So. So for the first question is based on the best of my knowledge, there's no word saying lifetime or ban. Those two words doesn't exist in the. In my plea agreement with the government. What is in the agreement is I stepped down a CEO. I don't think there's any timelines for it, but, you know, everything changes. Agreements can be updated with new agreements, even governments change. But I had no plan to go back to be the CEO. I finally got away from that post and I think the team's doing a good job. So I don't have any need to go back. I don't have any wish to go back. So even today, if I was allowed to go back, I probably won't. And so I think the lifetime ban is just creative journalism where they invented two words to make it more sensational. Is it wrong?

We're not sure.

Is it right? Those words does not was not in the agreement. The agreement is public, so it's a public agreement. So that's to the best of my knowledge. What was your second question?

Will you still be investing in crypto?

Oh, yeah, absolutely. So right now I'm really only doing two things. I'm working on Legal Academy and then I'm doing investments. Right. So, and then on the investments, there's really three subparts. There's blockchain, there's AI, and there's biotech. So very simple. And those are three big areas. So I no longer want to lead any project myself. I don't think I have the energy to do that anymore. And I'm not as hungry either. No, I'm not as hungry as I was seven years ago. So now I want to help other entrepreneurs to build their own companies so I can help them with funding, with advice, with coaching, mentoring if they want it, with access to other resources, connections, etc. So that's what I want to do. So I think I have a Few mentors who I value really strongly and I would like to become a mentor myself for those who wants to.

I'm sure a lot of people in this room would love you as a mentor.

I hope so.

I want to talk about Guys Eagle Academy. I have plenty of questions but before that on Altcoin Daily. Me and my brother, we speak to an audience of over 3 million across all social platforms. And one of the number one questions we get is outlook for crypto in 2025. Are you still just as bullish on crypto next year?

Okay, I'll try not to give any financial advice but. And also history doesn't predict the future, but I, I cannot predict the future. I can analyze the history. Historically, Bitcoin have went through very clear four year cycles. So 2013 was a bull year, 2017 was a bull year. So actually 2012 was a recovery year. I think most people don't look that, don't look back that far. And then 2013 was a bull year, 2016 was a recovery. 2014, 2015 were tough. 2017 was a. 2016 was a recovery year and then 2017 went all the way over and then 2020 was a recovery year and then 2021 was a boom year and this year now we're kind of back to the previous all time highs. So like 2024 is a recovery year based on the, based on the current analysis or based on the current prices. Next year I don't know what's going to happen but overall the long term for the industry, I think there's so much more that has to be built, that needs to be built and that will be built. So I think the industry will get bigger, more and more people will use crypto and with more people use crypto the utility value will increase. So long term I'm still very, very bullish. Short term it's very hard to predict.

What aspects and you know, a couple sentences. What aspects of crypto are you most bullish on? Is it D side the meme coins?

Well, actually I wouldn't go that specific because it's very difficult to split. It's very difficult to predict like that specifically like which one's going to be the next one, you know, beginning of 20, beginning of 2017 I probably could not have said ICOS is the next thing. But by June the trend was clear. By July we launched platform by December with the largest platform platform. So and I think it's a com depends on which project explode in those in the. In in those niche or in those small sectors. I think all of those have tradition. Tradition have potential to, to, to grow. Right now, like, I'm meeting a lot of founders this morning. I met founders who are using AI with a very interesting integration with blockchain ideas I never thought about. Right. So if any of those projects take off, that sector will become big. So it's very hard to predict. But I'm, I'm just, I'm just trying to support all the builders in the space and then see what happens.

Let's talk about legislation. I want to pick your brain. How do you see legislation today and also, where's it going as a guy in the space?

Well, I think currently, today, well, the legislation regulations are improving. And in some countries, like here, they're improving fast. In other countries, many of them are. Especially in bigger countries, they tend to move slower. Bigger countries do move slower. They're more departments, more people to discuss, etc. But overall, I think it's actually moving in a very positive direction. I'll give you another example, just personal feelings. A week before our sentence, middle April of this year, Elizabeth Warren declares a war on crypto. This is like a week before my sentencing, and then the judge sentences me, and then I went to prison. And then by June, Donald Trump is pro crypto. By. By end of June, both parties are pro crypto. I'm still sitting in prison. Like, what the. I don't know what the hell happened. So did I. Could I be just waiting for two, two months? So, so it shows that. Not now, the, the. But that basically shows that the people want crypto. When the people want to want crypto, then the government has to respond. So I think it's. Yeah, I think it's moving the right direction.

I live in the US that's my pov. And crypto is very much an election issue. In your opinion, Harris or Trump, who do you think is better for crypto?

Oh, I have no idea. I will not comment on any election topics because right now I got enough trouble with the US Laws. I know they have election interference law, so anything I say publicly could be taken out of context. So I don't want to touch it now. I don't even want to get close to the line. I don't even want to see the line. So I just want to stay as far away as possible. So no comments. I think both parties are pro crypto. That's fantastic.

I love it, I respect it and I love it.

Yeah, give it up.

As we look to legislation, regulation in the future, again, I have a US Point of view. What's one policy or one piece of legislation that you think is super important?

Well, I think the most fundamental one is actually just classification of crypto.

Right.

So now there's so many debates about. Well, in most other countries they just treat you as money. Japan recognized bitcoin as a currency. Many other countries recognize Bitcoin as a crypto as a currency. But of course there's different type of cryptos. Depends on coin, I guess. But I think in the US that's like kind of the large debate right now. And again, I won't comment too much. There are ongoing lawsuits with SEC, etc.

Yeah, CZ, final questions as we wrap up. I want to talk about bitcoin and of course I want to know about Giggle Academy, but let's just say one year from now, you and I are at binance blockchain week 2025. We're on this stage. Doesn't have to be above price, but where will bitcoin be, crypto a year from now?

One year is really hard to predict, but I think there's a high chance, if there's high chance that, you know, the future follows the history, so then we will be in a pretty good place.