CZ’s Financial Storm: A Drastic Decline in Fortunes
Binance co-founder and CEO Changpeng “CZ” Zhao is in the midst of a financial tempest, having witnessed his net worth plummet by a staggering $11.9 billion. This comes on the heels of falling trading volumes on his cryptocurrency exchange platform.
A Sharp Fall from Grace
On October 26, the Bloomberg Billionaires Index revised Binance’s revenue estimates downwards by 38% due to a decrease in exchange volumes. This revision has toppled Zhao from his lofty position, bringing him down to the 95th place on the global rich list.
From a Peak to a Precipice
Once boasting a net worth of nearly $97 billion, Zhao now finds his fortune reduced to a meager $17.3 billion, marking an 82% downturn from its zenith in January 2022. At that time, Zhao was majestically perched at the 11th position among the world’s affluent individuals.
Binance.US: A Fading Presence
Binance’s U.S.-based arm, Binance.US, has not been immune to challenges either. It has seen its trading volumes spiral down to new lows recently, reflecting the tumultuous phase the exchange is navigating.
Legal Battles: The Albatross around Zhao’s Neck
Compounding the financial woes are the stringent legal battles Zhao is entrenched in. Lawsuits from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have cast shadows over Zhao’s empire. The allegations range from operating unlawfully to the mishandling of customer assets, with Zhao at the epicenter as the “controlling person.”
A Rival’s Misfortune: Sam Bankman-Fried’s Crisis
Contrasting Zhao’s fortunes is the tale of Sam Bankman-Fried, whose $16-billion fortune has been obliterated following a liquidity crisis at his exchange, FTX. Accusations of fraud and conspiracy have further mired Bankman-Fried in controversy, adding to the gloom enveloping the cryptocurrency exchange landscape.