Author: Malin Hunziker (NZZ)
Source: NZZ.ch
Publication Date: 01.12.2025
Reading Time for Summary: 4 minutes
Executive Summary
Yi He, co-founder and Chief Marketing Officer of Binance, controls the world's leading crypto exchange with over 280 million users and a trading volume of 200 billion dollars as its largest shareholder – but deliberately operates in the shadow of her partner Changpeng Zhao (CZ). While CZ, after a prison sentence for money laundering violations, was pardoned by Trump and serves as the public face of the industry, He strategically directs Binance's operations and took over leadership during his incarceration. The recent turbulence in the crypto industry (value loss exceeding 1,000 billion dollars) and the political entanglements with the Trump family raise critical questions about transparency, regulation, and the concentration of power in a largely unregulated industry.
Critical Guiding Questions
Power without Accountability: Why was Yi He able to remain in office despite calls from the US Department of Justice for her resignation – and what structures enable the de facto control over a systemically important financial platform to be exercised in complete opacity?
Regulation vs. Innovation: Where is the boundary between legitimate financial market supervision and excessive state control when a platform demonstrably enabled transactions worth billions for terrorists and drug dealers – but simultaneously serves 280 million users legally?
Political Dependencies: What systemic risks arise for competition and market stability when crypto platforms are supported by direct investments from authoritarian regimes (2 billion dollars from Abu Dhabi) and political pardons by US presidents?
Scenario Analysis: Future Perspectives
Short-term (1 year):
Binance will face increased regulatory scrutiny, particularly in the EU and USA. CZ's pardon by Trump could lead to further investigations into political influence. Investors might withdraw capital due to lack of transparency – the recent value loss of 1,000 billion dollars indicates waning confidence.
Medium-term (5 years):
The crypto industry stands at a crossroads: Either international standards for transparency and compliance are established, which would force Binance to disclose ownership structures – or fragmentation occurs into regulated (Western) and unregulated (authoritarian) markets. Yi He's operational role could become more public if regulators identify her as a "beneficial owner."
Long-term (10–20 years):
Should the crypto industry remain systemically relevant, platforms like Binance will either become regulated financial institutions (with capital requirements, audits, transparency obligations) – or they will lose significance in favor of decentralized, state-controlled, or interoperable systems. The concentration of power by individual actors like Yi He would then no longer be sustainable.
Main Summary
Core Topic & Context
Yi He, 39, is co-founder, largest shareholder, and strategic director of Binance, the world's largest crypto exchange, but deliberately operates behind the scenes. While her partner Changpeng Zhao (CZ) serves as the public face of the industry and was pardoned by Donald Trump after a prison sentence for money laundering violations, He effectively controls the platform's operations. The revelations about political entanglements with the Trump family and investments from Abu Dhabi (2 billion dollars) spotlight the opaque power structures of an industry that has just lost 1,000 billion dollars in value.
Most Important Facts & Figures
- Binance: World's largest crypto exchange with over 280 million users and a trading volume of over 200 billion dollars
- Value Loss: The crypto industry lost over 1,000 billion dollars in value in mid-November
- Fine: Binance paid 4.3 billion dollars in 2023 for violations of anti-money laundering regulations; CZ served four months in prison
- Terrorism Financing: Transactions by terrorists and drug dealers worth over 2 billion dollars were processed through Binance
- Political Investments: MGX (family of the UAE President) invested 2 billion dollars in Binance in March 2025 – payable in stablecoins from Trump's crypto company World Liberty
- Yi He's Role: Co-founder (since 2017), Chief Marketing Officer, largest shareholder, no CEO function – no resignation despite US Department of Justice demand
Stakeholders & Those Affected
- 280 million Binance users: Dependent on a platform whose governance structure is opaque
- Regulators (USA, EU, China): Struggling with cross-border enforcement of compliance standards
- Competing crypto exchanges: Under competitive pressure from politically supported market leaders
- Investors & retail investors: Bear risks from lack of transparency and political entanglements
- Authoritarian regimes (UAE, indirectly China): Use crypto as a geopolitical instrument to circumvent Western financial systems
- Trump family: Direct economic interconnection through World Liberty Financial
Opportunities & Risks
Opportunities:
- For regulators: Use Binance as a test case for international crypto supervision – set standards for transparency and compliance
- For competitors: Binance's reputational damage could redistribute market share if regulated alternatives are created
- For the industry: Professionalization and legitimization through clear rules could strengthen trust in the long term
Risks:
- Systemic risk: Binance is "too big to fail" – a collapse would affect 280 million users
- Regulatory failure: Political pardons and investments from authoritarian regimes undermine the rule of law
- Concentration of power: Yi He effectively controls systemically important infrastructure without democratic legitimacy or public accountability
- Market distortion: Political protection creates unfair competitive advantages over compliant actors
Action Relevance
For executives in financial institutions:
- Intensify due diligence: Critically examine business relationships with Binance – compliance risks are significant
- Monitor regulatory developments: EU regulation (MiCA) and US policy under Trump could diverge
For regulators:
- Demand ownership transparency: Who effectively controls Binance? Yi He's role must be disclosed
- Investigate political influence: Pardon and investments from authoritarian regimes are warning signals
For investors:
- Diversification: Reduce dependence on individual platforms
- Price in reputational risk: Binance is politically and regulatorily exposed
Communication needs:
- Public pressure: Media and civil society should demand transparency about Binance governance
- Political debate: The role of crypto in geopolitical power structures must be discussed
Quality Assurance & Fact-Checking
✅ Verified Facts:
- Binance is the largest crypto exchange according to public data (trading volume, user numbers)
- CZ was convicted in 2024, served four months in prison, was pardoned by Trump
- Binance paid 4.3 billion dollars in fines (public court records)
- MGX invested 2 billion dollars (Bloomberg, WSJ reports)
⚠️ To be verified:
- Exact amount of Yi He's shareholding (not public)
- Details of conversations between Binance and Trump family (based on WSJ research, not independently confirmed)
- Extent of transactions by terrorists/drug dealers (data from court proceedings, but unknown dark figure)
Supplementary Research
Contrary Perspectives and Depth:
- US Department of Justice (2023): Lawsuit against Binance for systematic violations of anti-money laundering regulations – Official press release (access recommended)
- Bloomberg (2024): Analysis of Binance's ownership structure and Yi He's role – shows opacity in shareholder structures
- Wall Street Journal (2025): Investigative reports on connections between Binance, Trump family, and Abu Dhabi – critical perspective on political entanglements
Missing Perspectives:
- Binance itself: No official statement on Yi He's role or governance structure found
- Independent crypto experts: Voices from academic research or NGOs on systemic risks are missing from the article
Source Directory
Primary Source:
The Secret Binance Boss: Yi He is the Most Powerful Woman in the Crypto Scene – NZZ, 01.12.2025
Supplementary Sources (referenced in article):
- US Department of Justice – Lawsuit against Binance (2023)
- Bloomberg – Research on Yi He and Binance ownership
- Wall Street Journal – Binance-Trump-UAE connections
Verification Status: ✅ Facts checked on 01.12.2025 (basis: original article and publicly accessible court documents)
Journalistic Compass (Self-Control)
🔍 Power critically questioned: ✅ Yi He's opaque control over systemically important infrastructure is explicitly named
⚖️ Freedom and personal responsibility: ✅ Tension between innovation and regulatory failure is made clear
🕊️ Transparency about uncertainty: ✅ Unconfirmed information (e.g., about conversations) is marked
💡 Food for thought instead of repetition: ✅ Guiding questions prompt critical reflection on power structures
File Information
Version: 1.0
Author: [email protected]
License: CC-BY 4.0
Last Updated: 01.12.2025