What Triggered the Latest Dispute Between CZ and Star Xu?
Changpeng “CZ” Zhao’s newly released memoir, Freedom of Money, has reignited a long-running dispute with OKX founder Star Xu, bringing historical allegations back into focus. The book revisits Zhao’s early involvement with OKCoin and outlines claims of internal conflicts, contract disputes, and competitive pressure from rival exchanges.
Zhao describes a period in which he was portrayed as an ineffective chief technical officer and alleges that competitors attempted to undermine him through coordinated criticism. The memoir also references conversations with Huobi founder Leon Li, including claims about past interactions with authorities.
Xu responded publicly, disputing multiple elements of the account and describing Zhao as “a habitual liar,” while challenging both the accuracy and intent of the narrative presented in the memoir.
What Are the Key Points of Contention?
The dispute centers on several historical events, including a contract disagreement involving Roger Ver during Zhao’s time at OKCoin. Xu referenced previously released materials, including a notarized video and internal communications, which he argues contradict Zhao’s version of events.
According to Xu, earlier evidence suggested inconsistencies in how contract terms were presented and disputes Zhao’s explanation regarding access to internal messaging systems at the time. He also revisited past allegations that Zhao misrepresented his technical contributions and engaged in conduct that raised internal concerns.
Zhao’s memoir presents a different account, framing these events as part of broader competitive dynamics within the crypto exchange sector during its early development phase.
Investor Takeaway
How Do 2020 Custody Events Factor Into the Narrative?
The memoir also revisits events from October 2020, when OKX, then operating as OKEx, suspended withdrawals for several weeks while Xu was reportedly under investigation in China. Zhao contrasts this with Huobi’s decision not to halt withdrawals during a similar situation involving Leon Li.
The book suggests differences in wallet infrastructure and operational design between the exchanges, implying that custody arrangements played a role in how each platform responded to executive-level disruptions.
Xu disputes this characterization, rejecting claims related to custody control and operational decisions during the period. He also denied allegations connected to reporting activity involving other industry figures.
Investor Takeaway
What Does This Mean for the Broader Crypto Market?
The exchange between Zhao and Xu reflects ongoing tensions rooted in the early development of centralized crypto platforms. Many of the issues raised—governance, internal controls, and competitive practices—remain central to how the industry is evaluated today.
While the dispute is largely based on historical events, it comes at a time when exchanges are under increasing scrutiny from regulators and institutional participants. Questions around transparency, operational integrity, and leadership accountability continue to influence market perception.
Zhao had not publicly responded to Xu’s latest statements at the time of publication. Both parties have previously addressed elements of these disputes, but the memoir has brought them back into public discussion.
