This paper has its focus narrowed in on the ethics and legalities based in business law. A
violation of business law is much more complex in nature than some other segments of law, and
it can display itself in many ways. Instead of being very straight forward and objective like some
cases, business law is ever changing and is constantly having to disallow for new cases of fraud
or illegal activity in business. A prime example of this would be the legality and rules
surrounding Bitcoin and cryptocurrency exchanges. The article presented in this paper is an
example of an ethical dilemma in cryptocurrencies that has crossed boundaries that eventually
brought in a conviction of criminal law.
Changpeng Zhao was the CEO and founder of Binance, a very well-known and renowned
blockchain trading platform. CZ was considered a young business genius and billionaire for his
new platform and its success seemed to have no ceiling granted that cryptocurrencies we
accepted as a FIAT currency. (Hargrave and Karnoupakis, 2021) Recently, “Zhao pleaded guilty
on Nov. 21 to a charge of failure to maintain an effective anti-money laundering program at
Binance, the world’s largest cryptocurrency exchange. As part of that plea, he agreed to step
down as Binance’s chief executive officer and to pay a $50 million fine.” (Magan, 2024) The
questions raised in these allegations led to the eventual decision that these actions were in fact
criminal due to the negligence of CZ and his sentencing is set for later in March.
This violates several ethical standards that I hold to myself. My ethical standards are
based in honesty, leadership, and loyalty. It is each of these three criteria that allow me to live a
well-structured and Godly life in my personal life and in the workplace. I firmly believe that it is
these three ethicial guidelines that could lead a business to great success and a life devoted to
God. Each of these criteria were blatantly disregarded, by CZ for several reasons. In regard to
honesty, CZ made it very possible for himself and others to launder money and have opportunity
for fraud. This is dishonestly by lack of action and disassociation. In regard to leadership, CZ
literally built the company he is the CEO of, and he set a standard in leadership that is unethical.
This destroys the company and makes it impossible for the leadership to be trusted. After all, in
Isaiah 10:1 the Lord says, “Woe to those who make unjust laws, to those who issue oppressive
decrees,”. Finally, in regard to loyalty, CZ showed that his allegiance lied only with himself and
those that are harmed because of his actions are completely irrelevant in his mind. It is for these
reasons that I feel the situation in which CZ acted was unethical, illegal, and worthy of criminal
charges.
The prevention of this criminal offense could have been very easily avoided by taking
one simple action. This entire case was opened up not because of a blatant act against
government standards, but rather the negligence of upholding those standards. By deciding to
leave the door open for fraud, CZ did not prevent possible situations from happening. Taking
extra measures would have been an excellent preventative measure in this case. I will say that if
CZ was criminally minded from the very beginning of his starting Binance, there is not much
that can be done to prevent his malicious intent. However, according to the article and to other
facts presented, this is inconclusive.
My response to these allegations that have been made against CZ and Binance would be
very strict and punishing. This is not to further hurt CZ or others, but rather to create an
environment of trust and create justice. The Bible makes it very clear where the standards are for
honesty and loyalty in Luke 16:10-12 which says, “One who is faithful in a very little is also
faithful in much, and one who is dishonest in a very little is also dishonest in much. If then you
have not been faithful in the unrighteous wealth, who will entrust to you the true riches? And if
you have not been faithful in that which is another's, who will give you that which is your own?”
It is in this verse that I would base my actions in this case. I agree with the decision to remove
CZ as CEO wholeheartedly. CZ could not be trusted with a little and therefore cannot be trusted
with a lot. This action is taking the cancer out of the Binance institution and allowing to move on
and grow in a healthy way. If CZ’s influence continued to progress into the cryptocurrency
exchange, then the future of the company would be tainted. This action however only protects
against any future harm that would be created. There are still many damages that have been
sustained because of CZ’s actions in the past. I feel that the company and the people involved
should be monetarily compensated completely for any financial damages.
References
Hargrave, J., & Karnoupakis, E. (2021).EBlockchain success stories : case studies from the
leading edge of businessE(1st edition). O’Reilly.
Holy Bible: NIV: New International Version.E(1973). Christian Media Bibles.
Mangan, D. (2024, February 13).ECriminal sentencing of Binance founder CZ postponed to late
April. CNBC. https://www.cnbc.com/2024/02/12/criminal-sentencing-of-binance-
founder-cz-postponed-to-late-april-.html
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