July 21, 2024
Binance Founder's Wealth Drops by $12B, SBF Stays at $0
Latest Cryptocurrency News

Binance Founder’s Wealth Drops by $12B, SBF Stays at $0

Binance co-founder and CEO Changpeng “CZ” Zhao has seen a significant reduction in his net worth, with an $11.9 billion decline due to decreased trading volumes on his exchange. On October 26, the Bloomberg Billionaires Index lowered Binance’s revenue estimates by 38%, causing Zhao to drop to 95th place on the rich list.

Zhao’s current net worth is now $17.3 billion, marking an 82% decrease from its peak of $96.9 billion in January 2022 when he was ranked 11th among the world’s wealthiest individuals. Bloomberg’s calculations for Binance’s revenues were based on spot and derivatives trading data from crypto data aggregators CoinGecko and Coinpaprika.

Binance’s spot trading market share had been declining for seven consecutive months, reaching 34.3% as of September, down from over 55% in January.

Binance’s US-based arm, Binance.US, also experienced a drop in trading volumes last month.

These declines in Zhao’s net worth and Binance’s trading volumes are occurring in the midst of legal challenges from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC filed a lawsuit against Zhao, Binance, and Binance.US in June, alleging illegal operations, selling unregistered securities, and mishandling customer assets, with Zhao identified as the “controlling person.” The CFTC’s suit in March asserted that Binance had not properly registered with the regulator. Zhao and Binance are contesting both regulatory lawsuits.

It’s worth noting that this decline in wealth is notable, but it doesn’t compare to Sam Bankman-Fried, a former rival, who saw his $16 billion fortune largely vanish in November 2022 after FTX disclosed a liquidity crisis shortly before filing for bankruptcy.

This crisis may have been triggered by a tweet from CZ, in which he announced Binance’s sale of FTX Token (FTT) holdings, leading to a surge in withdrawals from FTX. Initially, Zhao attempted to acquire FTX but withdrew his offer within 48 hours. Bankman-Fried is currently involved in a criminal trial related to fraud and conspiracy charges.

Image by Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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