- While the crypto market has been experiencing a strong recovery in 2023, the net worth of crypto billionaire and Binance founder Changpeng Zhao has dropped by 80% since the beginning of the year.
- According to Bloomberg Billionaires Index data, this has reduced CZ’s net worth by $12 billion, leaving it at $17.2 billion.
- Regulators have placed the company under scrutiny with allegations of inadequate anti-money laundering controls, inflating trading volumes, and mishandling customer assets.
Despite the rise of Bitcoin and cryptocurrencies in 2023, Binance and its CEO CZ are struggling with problems, and a significant portion of their wealth has disappeared!
Zhao Losing a Significant Portion of His Wealth
While the crypto market has been experiencing a strong recovery in 2023, the net worth of crypto billionaire and Binance founder Changpeng Zhao has dropped by 80% since the beginning of the year. Binance has been going through a challenging period, especially in its battle with the SEC and other global regulators.
The exchange had gained market share, responsible for 62% of total cryptocurrency trading in the first quarter of the year, thanks to a zero-commission promotion for popular trading pairs earlier this year. In January 2023, CZ’s net wealth was an extraordinary $96 billion.
However, following the end of this promotional period, Binance’s market share dropped to 51% by the end of the third quarter, as reported by research firm CCData. According to Bloomberg data, the company’s revenue fell by 38% due to decreased trading volumes. According to Bloomberg Billionaires Index data, this has reduced CZ’s net worth by $12 billion, leaving it at $17.2 billion. This shows that 80% of his net worth has eroded since the beginning of 2023.
In recent months, the crypto exchange has become increasingly isolated from the traditional financial system. In June, Binance was sued by the Securities and Exchange Commission, and earlier this year, the Commodity Futures Trading Commission initiated legal action against the company, alleging that it failed to comply with regulations allowing US users to use the Binance platform.
Regulators have accused the company of inadequate anti-money laundering controls, inflating trading volumes, and mismanaging customer assets. Binance, however, denies these allegations and actively contests them in court.
Binance US Deals a Major Blow
Following the announcement that the Binance US exchange would no longer support dollar transactions, Bloomberg’s wealth index has reset the valuation to zero, resulting in a significant decrease in trading volume. In a funding round in March 2022, Binance US was valued at $4.7 billion. However, Binance US is considering listing new alternative coins to increase transparency.
