Binance CEO’s Wealth Plunges Amid Regulatory and Legal Troubles
Binance co-founder and CEO Changpeng Zhao has experienced a significant decline in his fortune, with his net worth dropping by $11.9 billion since January to $17.2 billion. This comes as the world’s largest cryptocurrency exchange faces a multitude of regulatory and legal challenges.
The Bloomberg Billionaires Index released a report on October 26 that also reduced its revenue estimates for Binance by 38% due to a decrease in exchange volumes.
Zhao’s wealth has plummeted by more than 80% from its peak of $97 billion in January last year.
#Binance founder CZ’s fortune gets slashed $12B.
Zhao’s net worth is now a paltry $17.3 billion, registering an 82% drop from its $96.9 billion peak in January 2022, where he was ranked 11th among the world’s richest people.
— Crypto News & Analysis (@coinsonx) October 27, 2023
Zhao currently holds the 95th position among the world’s wealthiest individuals, according to the Bloomberg Billionaires Index.
The index calculates Binance’s revenue using spot and derivatives trading data from crypto-tracking services Coingecko and Coinpaprika. Binance’s market share peaked at 62% of total on-exchange crypto trades in the first quarter of this year but dropped to 51% by the end of the third quarter.
Binance Under Pressure From Regulators
Binance has been embroiled in regulatory disputes throughout this year. In June, the Securities and Exchange Commission (SEC) filed a lawsuit against Zhao, Binance, and Binance US, accusing the exchange of operating illegally, selling unregistered securities, and mishandling customer assets.
The Commodity Futures Trading Commission (CFTC) also filed a suit against Binance in March for failing to properly register with the regulator.
Despite these allegations, Binance is disputing them and actively fighting back. However, in June, Bloomberg’s wealth index reduced the value of Binance’s US exchange to zero after it announced it would no longer transact in dollars.
As of September, Binance’s spot trading market share had declined for seven consecutive months to 34.3%, compared to over 55% in January.
Hot Take: Binance CEO Faces Steep Wealth Decline Amidst Regulatory Headwinds
The ongoing regulatory and legal troubles faced by Binance have taken a toll on the net worth of its CEO Changpeng Zhao. With an $11.9 billion decline since January, Zhao’s fortune has plummeted to $17.2 billion, marking an 80% drop from its peak last year. The Bloomberg Billionaires Index also revised its revenue estimates for Binance by 38% due to a decrease in exchange volumes. This decline comes as Binance battles allegations from regulatory bodies such as the SEC and CFTC. Despite the challenges, Binance continues to dispute the claims and fight back against regulatory overreach. However, the exchange’s spot trading market share has suffered, falling to 34.3% as of September. The future remains uncertain for both Binance and its CEO as they navigate these turbulent times.
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