Binance CEO Changpeng Zhao Sees Net Worth Plummet by $11.9 Billion: Bloomberg Billionaires Index
In a turn of events that has sent shockwaves through the cryptocurrency world, Binance co-founder and CEO Changpeng “CZ” Zhao has witnessed a staggering $11.9 billion decrease in his net worth. This significant drop comes in the wake of plummeting trading volumes at his renowned cryptocurrency exchange, Binance.
On October 26, the Bloomberg Billionaires Index dealt a heavy blow to Binance’s revenue projections by reducing them by 38%. This adjustment in estimates pushed CZ Zhao down to the 95th position on the list of the world’s wealthiest individuals.
CZ Zhao, whose fortune had previously peaked at an astonishing $96.9 billion in January 2022, was ranked 11th among the globe’s richest people. However, his net worth has now dwindled to a mere $17.3 billion, marking an astounding 82% decline.
The Bloomberg Billionaires Index based its calculations on Binance’s revenues using data from crypto data aggregators CoinGecko and Coinpaprika, focusing on spot and derivatives trading data. The data revealed a grim picture, with Binance’s spot trading market share continuously declining for seven consecutive months to reach just 34.3% in September. This is in stark contrast to January, when Binance held over 55% of the spot trading market share.
The situation was not any brighter for Binance.US, the United States-based arm of the exchange, as it also reported reaching new lows in trading volumes during the previous month.
This abrupt nosedive in CZ Zhao’s net worth and Binance’s dwindling trading volumes has coincided with a dual legal challenge from U.S. regulatory bodies—the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC initiated a lawsuit against CZ Zhao, Binance, and Binance.US back in June, accusing the exchanges of operating illegally, selling unregistered securities, and mismanaging customer assets. CZ Zhao was specifically singled out as the “controlling person” in these allegations.
In March, the CFTC filed a suit claiming that Binance failed to properly register with the regulatory body. Both CZ Zhao and Binance have vehemently denied the allegations put forth by both the SEC and the CFTC, and they are actively seeking the dismissal of both lawsuits.
The repercussions of these legal battles and the decline in trading volumes have certainly raised significant concerns within the cryptocurrency community. The outcome of these challenges remains uncertain, and it will be interesting to see how CZ Zhao and Binance navigate through these turbulent waters in the coming months.
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