CZ: Crypto Illegal Activity Rate Is Just 0.0014%, Far Below Banks’ 2-5%
Binance founder Changpeng Zhao, widely known as CZ, used a recent industry appearance to push back against one of crypto’s most persistent criticisms: that digital assets are a magnet for criminal money. Speaking at the ASEAN Tech Summit on July 31, 2026, CZ argued that the crypto illegal activity rate is dramatically lower than what critics assume, and far below the level seen in traditional finance.
Key takeaways
- CZ said illegal activity accounts for around 0.0014% of all crypto transactions.
- Traditional finance, by comparison, sees an estimated illegal activity rate of 2% to 5%, according to the figures CZ referenced.
- The Binance founder made the remarks during an interview at the ASEAN Tech Summit on July 31, 2026.
- CZ credited blockchain transparency and traceability for making it easier to spot and monitor suspicious fund flows.
- He argued that criminal misuse of a payment method, whether crypto, cash, or banks, doesn’t make the underlying system itself the problem.
Binance Founder Challenges Crypto Crime Narrative
CZ’s core argument is simple: the data doesn’t match the reputation. For years, crypto has carried the label of a haven for money launderers, scammers, and sanctioned actors. But according to the figures CZ cited at the summit, illegal activity makes up only about 0.0014% of crypto transactions, a fraction so small it barely registers next to the numbers he attributed to conventional finance.
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