He Yi: The “No. 1 Sister in the Currency Circle” who succeeded Changpeng Zhao at Binance

He Yi, a former talk show host who has broad control over the crypto giant’s marketing and investment arms and is the long-time romantic partner of founder Changpeng Zhao companion.

US authorities have defeated the "King" of the crypto world, but the "Queen" still stands.

Changpeng Zhao was forced to end his leadership position at Binance early due to violations of anti-money laundering laws. The world’s largest crypto exchange became a conduit for international money transfers for terrorists, drug traffickers and sanctions violators, government charges show.

In this turmoil, He Yi escaped unscathed. She co-founded Binance with Changpeng Zhao and has been his main partner in running the exchange. She is also the romantic partner of Zhao Changpeng, with whom she has three children.

He Yi, 37, has taken over the role of Binance maintainer since Changpeng Zhao resigned last month, calling critics "mediocre and hopeless" ” on the X website once known as Twitter. In a sign of her stature, she recently led a public communication for the platform's Chinese-speaking users alongside the company's new CEO, Richard Teng.

For some former Binance executives, she epitomized the company's strategy of resisting regulation, which led to the company admitting crimes and paying a $4.3 billion fine. It is the largest fine ever imposed on a crypto company. Binance is also fighting a separate lawsuit with the U.S. Securities and Exchange Commission.

In Zhao Changpeng's absence, He Yi became the company's largest shareholder, with broad control over its marketing and investment arms. Despite the warnings in judicial cases, Binance remains the most powerful platform in crypto, processing billions of dollars in transactions every day. He Yi used her influence in electing Binance’s new independent majority-owned board, according to people familiar with the board’s recruitment process.

Binance executives have recently reached out to a number of candidates, including He Yi’s close friend Ella Zhang, who previously led Binance’s venture capital arm. It was unclear whether Ms. Zhang would respond to a request for comment.

Some former executives say that, like Zhao, He ignored the importance of rules set by regulators to combat financial crime. Although not named, she was named in Binance's plea agreement for helping find a way for U.S. users to illegally trade on the platform.

In early settlement discussions, the Justice Department had hoped that He would leave, but it's unclear why that ultimately failed to materialize, according to people familiar with the negotiations.

A spokesman for the Justice Department declined to comment.

A spokesperson for Binance did not comment on He Yi’s role in the case, but said the company had acknowledged making mistakes in the past and made improvements. A spokesman said He supported the change.

He Yi said in a statement: "I fully support the company's new direction, and I am eager to turn over this challenging but also a chapter of learning and growth. ”

When asked if she was involved in recruiting new board members, Binance said that the process included "a review of potential candidates by relevant stakeholders."

Zhao Changpeng’s lawyer did not respond to an invitation for comment.

This article's account of how He shaped Binance is based on interviews with current and former employees, court documents, internal Binance sources, and the company's previous public statements.

Encrypted Love

He was born in China and Canadian educated software programmer. She is a Chinese travel program host who grew up in a rural village in Sichuan Province from a poor teacher family.

Their love originated in the crypto field.

He Yi first met Zhao Changpeng at an encryption conference in 2014. At the time, Changpeng Zhao was working for a company developing digital wallets and impressed He Yi during a speech about the potential of crypto. She later mentioned this in an interview with a British journalist. Subsequently, she invited Changpeng Zhao to join OKCoin, a new Chinese encryption exchange she founded, as chief technology officer.

The couple started dating while working together in Shanghai. At that time, Zhao Changpeng was also in a relationship with another woman, and they had a child. Later, they broke up.

In 2017, Changpeng Zhao founded Binance, and He Yi joined him as co-founder and chief marketing officer. She was crucial to Binance’s early growth and is better known than Changpeng Zhao in China’s crypto community. Chinese media calls her the “first sister” of the crypto world.

She once told employees that even if the smallest problem occurs on the exchange, employees should go all out to appease users. She told employees in a message to be fully focused on combating any negative publicity.

She told a Chinese media outlet: "Even Changpeng Zhao looked at me and said, 'You don't have any hobbies.' I replied, 'My hobby is for Binance. Work.'"

During the difficult moment, she sent messages aimed at encouraging employees that some thought were a bit exaggerated.

She wrote in a letter in 2019: "War is not just about 'an arrow piercing the clouds, thousands of troops coming to meet each other', It's also about bloody battles and the conquest of cities and territories." She quoted this quote from the movie "Kung Fu."

He Yi recruited a group of volunteers called "Binance Angels" to spread Zhao's message that crypto will liberate people from the traditional financial system. The move was successful but also brought risks, as complaints from former Binance executives and the Commodity Futures Trading Commission alleged that Binance Angel guided users on how to circumvent trading restrictions in the United States and China.

A spokesperson for Binance said the company insists that Binance Angels "comply with applicable laws."

He Yi led the marketing strategy for an independent U.S. exchange launched in 2019, which Binance claimed at the time was fully independent. “He Yi is calling the shots,” one employee said in a message to another that year. The Justice Department said the exchange, known as Binance.US, was a ploy to distract U.S. authorities from the major Binance.com platform attention.

As her marketing efforts attracted a large number of users, He Yi also accumulated her own wealth.

She holds at least a 10% stake in Binance's Cayman Islands holding company, according to people with knowledge of the exchange's finances. She once told a Binance business associate that her stake made her one of the richest women in the world. When the crypto market reached its peak in 2021, former executives valued Binance at more than $300 billion. A spokesperson for Binance said that as a private company, the company does not share these details.

At that time, He Yi and Zhao Changpeng lived together in a mansion on the Sentosa resort island in Singapore. He Yi held a small wedding for two colleagues on their $11 million yacht, named Da Moon. "Crazy rich Asians got married on a very beautiful lady's yacht," one Binance employee wrote on Instagram.

Employees Common It is believed that within the company, He Yi is regarded as the number two figure after Zhao Changpeng.

However, in front of employees, Zhao Changpeng treated He Yi like an employee to show that he did not give her special treatment. The former executive said he told her during a company conference call that she needed to improve her English.

Signing with Cristiano Ronaldo

In 2021, Binance brought in executives from outside the crypto industry to reshape its compliance and marketing efforts.

The new marketing team told He Yi that Binance needs to build partnerships with respected institutions and launch traditional advertising campaigns to gain recognition among the public and regulators Gain credibility, people familiar with the campaigns say.

He Yi hopes that Binance will follow other crypto exchanges and participate in the Super Bowl the following year. Bowl) for a massive advertising campaign. However, these executives told her that this was risky given that Binance’s global exchange business does not have a U.S. license. Ultimately, the company decided not to do a Super Bowl ad.

In 2022, Binance signed football star Cristiano Ronaldo. The contract is worth about $60 million over three years and covers players' time, promotions and appearances, according to former executives involved in the project.

A spokesperson for Binance said these details about Ronaldo’s contract were inaccurate but did not provide further clarification.

Binance’s VP of Global Marketing has driven an aggressive campaign aimed at maximizing returns on the pricey deal, including in key markets TV commercials on.

After the launch of Ronaldo's promotional campaign, which took place on Twitter and television, He Yi complained to her team about the immediate impact in terms of user numbers and project costs. Insufficient returns. The vice president subsequently resigned.

This is an example of what former Binance executives called He Yi’s “grave project.” The former executive, along with other former executives, said she often blamed the people who led her projects when they didn't meet her expectations.

A spokesperson for Binance said the Ronaldo campaign exceeded the company's goals, including new user signups and generated "billions in media exposure."

The spokesman denied describing the project. "We encourage trying new things, making mistakes and continuous improvement," he said.

A spokesman for Ronaldo did not respond to a request for comment.

"Building Block"

He Yi's other One project plans to create a Netflix-like movie studio. She proposed a Marvel Cinematic Universe-like series with early Binance employees as the main heroes. The idea was shelved.

Under He Yi’s leadership, Binance produced a series called “Building the Block,” in which crypto entrepreneurs fought to gain access to Binance Investing, similar to Shark Tank. The show’s contestants and judges appear as computer-generated avatars, and Binance claims it is the first reality show based on the Metaverse.

He Yi served as a guest judge on the premiere show, which received 4,400 views on YouTube. One of the producers working on the show was laid off.

In 2022, He Yi has been pushing Binance to support a project that plans to sell digital identities from the Pacific island nation of Palau to outsiders for $248. The project will enable residents of countries where Binance is banned, including China and the United States, to access its trading platform.

Executives have warned He Yi that the Palau plan could pose reputational and legal risks. However, according to some former Binance executives, she persisted in pushing because she wanted to provide a backdoor path for Chinese users. Binance stopped accepting Palau ID cards when WSJ reported on the project earlier this year.

A spokesperson for Binance said that after conducting due diligence on the project, the company is not working with any partners.

During the latter stages of Zhao’s tenure, as negotiations with the U.S. Department of Justice deepened, a former Binance executive said He Yi took over more Daily management of the exchange.

After Binance laid off more than 1,000 of its 8,000 employees this summer, she took to the company's chat platform weeks later to criticize employee reactions to the layoffs. Emotional rather than rational. She tried to motivate employees, saying that Binance would emerge from another "rebirth."

When the U.S. Department of Justice announced Zhao Changpeng’s plea agreement, He Yi made more concise remarks. She wrote on Twitter: "A new page, moving on." (WSJ)