Embattled billionaire and founder of Binance, Changpeng Zhao’s, net worth has recorded gains of up to $8.42 billion, pushing his total wealth to nearly $50 billion, driving his year-to-date gains up by $13.9 billion.
Zhao’s net worth soared from $39.9 billion to $48.3 billion as the share price of Binance rose from $549.19 on March 22, 2024, to $554.30 as of Monday morning, March 25, 2024, according to data from the Bloomberg Billionaire Index.
The bulk of Zhao’s fortune is attributed to his controlling stake in Binance, which is recognized as the world’s largest cryptocurrency exchange by trading volume, boasting over 150 million users as of August 2023.
Binance’s revenue of $9.8 billion is derived from the average of the company’s trailing 12-month spot and derivative trading volumes through March 2024, as monitored by research services Coingecko.com and CCData. Additionally, the average transaction fees disclosed on Binance’s website, separately calculated for spot and derivative volumes, contribute to this substantial revenue figure.
The updated revenue figure in March 2024 resulted in a net worth gain of approximately $11 billion for Zhao, reflecting the significant growth trajectory of Binance and its founder’s wealth amid the evolving ecosystem of the cryptocurrency market.
What you should know about billionaire Zhao’s fortune
Changpeng Zhao, widely recognized for his influential role in the cryptocurrency industry, is credited with holding a significant 90% ownership stake in Binance, as disclosed in public statements and filings in regions where ownership details are made publicly available.
In addition to his stake in Binance, Zhao also possesses ownership of Binance.US, a related exchange operating in the United States. During a fundraising round in March 2022, Binance.US garnered a valuation of $4.7 billion, with Zhao estimated to own an 86% stake in the company based on its fundraising history.
However, Zhao’s ownership in Binance.US faced a significant setback when the exchange encountered legal challenges. Following a lawsuit by the Securities & Exchange Commission in June 2023, Binance.US announced its decision to transition to a crypto-only model, discontinuing support for dollar transactions.
Consequently, the exchange’s value plummeted to zero, resulting in a staggering $1 billion reduction in Zhao’s overall fortune. In addition to his holdings in Binance and Binance.US, Zhao has disclosed investments in Bitcoin and Binance Coin, further diversifying his cryptocurrency portfolio. However, the precise amount of cryptocurrency directly held by Zhao remains undisclosed, thus precluding its inclusion in his calculated net worth.
Notably, the Bloomberg Billionaires Index, as of late December 2023, ranked Zhao as the 35th richest individual globally.
Backstory of Zhao’s battle with regulators
In early 2023, Binance, a prominent player in the cryptocurrency market, experienced a surge in market dominance, capturing a notable 62% share of total on-exchange crypto trades during the first quarter.
This remarkable achievement was attributed in part to a zero-fee promotion implemented for popular trading pairs, enticing users to engage in trading activities on the platform.
However, following the conclusion of the promotional period, Binance faced a decline in its market share, which dwindled to 51% by the end of the third quarter, according to data provided by research firm CCData.
This reduction in market share underscored the challenges encountered by Binance in sustaining its dominance amidst evolving market conditions and regulatory pressures.
Amidst these challenges, Binance found itself increasingly at odds with the traditional financial system, facing regulatory scrutiny and legal action from government authorities. In June, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging various violations and regulatory shortcomings.
Additionally, earlier in 2023, the Commodity Futures Trading Commission (CFTC) initiated regulatory proceedings against Binance, citing concerns related to access for U.S. users, deficient anti-money laundering controls, inflated trading volumes, and mishandling of client assets.
These regulatory challenges culminated in significant repercussions for Binance, including a substantial $4.3 billion fine imposed by U.S. regulators.
