Despite recently admitting guilt to federal money laundering charges, former Binance CEO Changpeng Zhao, widely known as CZ, still boasts a net worth of $15 billion. On Tuesday, CZ acknowledged his breach of US regulations and evasion of sanctions laws in his quest for supremacy in the cryptocurrency market.
However, CZ maintains his majority stake in Binance, solidifying his position as one of the wealthiest convicted felons globally and, without a doubt, the richest figure in the cryptocurrency industry. Forbes estimates CZ’s roughly 90% stake in Binance, constituting the majority of his wealth, is currently valued at around $15 billion—an increase from $10.5 billion in April according to Forbes’ 2023 World’s Billionaires list.
Binance’s financial success over the past year is notable, with the exchange generating revenue surpassing $3 billion. Forbes analyzed spot and derivatives trading volumes tracked by CoinGecko to arrive at this figure, attributing the surge to the cryptocurrency market’s revival. Bitcoin, a pivotal industry indicator, has more than doubled in value this year, reaching $37,500 as crypto markets rebounded post FTX’s collapse. Notably, Coinbase, Binance’s competitor, witnessed a threefold increase in its shares since the start of the year.
While Binance‘s market performance remains robust, the company faces a new reality as an independent compliance monitor will oversee its operations for three years, reporting findings to the US government. These constraints could potentially impact Binance’s revenue and threaten its status as the leading global cryptocurrency exchange.
Binance’s ability to sustain its market share becomes crucial in determining CZ’s future wealth. In October, Binance facilitated 32% of spot trades and 50% of derivatives trades, according to CCData. However, its share in spot markets has steadily declined for eight consecutive months.
Key Information | Figures |
---|---|
Net Worth of CZ | $15 billion |
Binance Revenue (Last Year) | $3 billion |
CZ’s Stake in Binance | 90% |
Estimated Value of CZ’s Stake | $15 billion |
Binance Fines by DOJ | $4.3 billion |
Market Value Increase (2023) | $600 billion |
Binance Spot Trades (October) | 32% |
Binance Derivatives Trades | 50% |
Binance’s Competitor (Coinbase) | Tripled |
Bitcoin Value (Current) | $37,500 |
The recent plea deal, in which CZ admitted guilt, might help restore trust in Binance, attracting back users who were previously concerned about the company’s legal situation. Owen Lau, a crypto and financial exchange analyst at Oppenheimer & Co., expressed optimism, stating that the announcement could have a positive effect on Binance, preventing a worst-case scenario where it becomes a defunct business.
New Binance CEO Richard Teng, who took over from Changpeng Zhao, has hinted at the exchange’s ability to pay the $4.3 billion fine imposed by the US Justice Department. Teng assured the public that Binance is in good financial shape, dismissing concerns about the need for cryptocurrency asset sales to cover the fine.