CZ Says He Went to Prison Over Binance’s Weak KYC as Hyperliquid Operates Without KYC

Binance founder Changpeng Zhao (CZ) has discussed Hyperliquid’s operating model, acknowledging the protocol’s technological innovations while highlighting differences between its decentralized framework and traditional centralized exchanges.

Speaking in an interview with The Block, CZ said Hyperliquid’s no-KYC smart contract system represents a fundamentally different approach from centralized platforms. He noted that the protocol is operated by a small team, with closed-source code and significant control over its development.

CZ also compared Hyperliquid’s approach with the regulatory challenges faced by Binance, saying the current compliance environment has changed significantly. He referenced his own prison sentence related to Binance’s KYC shortcomings, contrasting it with Hyperliquid’s lack of KYC requirements.

While CZ said Binance would not adopt a similar model, he expressed hope that Hyperliquid would succeed if its system could demonstrate genuine decentralization. He added that a verified decentralized structure could open new possibilities for the broader crypto industry.

Source: The Block