In a preview of an upcoming conversation with Galaxy Research’s Alex Thorn posted to X, former Binance CEO Changpeng “CZ” Zhao praised blockchain-based perpetual futures exchange Hyperliquid, which has been one of the biggest success stories in crypto over the past couple of years. However, CZ also hinted that Hyperliquid could face legal scrutiny for pairing minimal identity checks with decentralization theater. “I would never do what they do given what I’ve experienced in my life,” said CZ. “But I’m not a legal person. I cannot give other people advice. I assume they have good lawyers. They are making a lot of money.” CZ added that Binance can’t compete with Hyperliquid, pointing to the latter’s lack of compliance with Know Your Customer regulations. “They don’t have KYC,” said CZ. “They claim to be decentralized.”
CZ on Hyperliquid: “I think the Hyperliquid invention is actually awesome. They occupy a niche that Binance.. cannot compete. They don’t have KYC. They claim they’re decentralized… I would never do what they do, given what I’ve experienced… I assume they have good lawyers.” pic.twitter.com/FOXuzaRodc — Alex Thorn (@intangiblecoins) June 16, 2026 CZ is speaking from direct experience here. In November 2023, Binance pleaded guilty and agreed to pay more than $4.3 billion to resolve U.S. allegations tied to anti-money laundering and sanctions violations, while Zhao personally pleaded guilty to causing Binance to fail to maintain an effective anti-money laundering program. Zhao also later received a four-month prison sentence.
