Changpeng Zhao’s net worth has plummeted significantly as Binance’s trading volumes have dried up this year due to regulatory action.
Changpeng Zhao, the founder of Binance and a crypto magnate, saw his net worth plummet by 80% since the beginning of 2023 as the cryptocurrency market experienced a strong rebound.
Binance has been experiencing turbulence on multiple fronts in 2023, particularly in its conflict with the US SEC and other global regulators.
In the first quarter of this year, the exchange’s market share peaked at 62% of the total number of cryptocurrency transactions conducted on exchanges. This expansion was primarily attributable to the promotion of zero-fee trading pairs. In January this year, CZ’s net worth was astronomical at $96 billion.
CCData reported that Binance’s market share dropped to 51% by the end of the third quarter following the conclusion of this promotional period. According to Bloomberg data, the company’s revenue plummeted by 38% as volumes at the exchange dried up due to its regulatory battles.
According to the Bloomberg Billionaires Index, this reduced CZ’s net worth by $12 billion, bringing it down to $17.2 billion. This indicates that since the start of 2023, 80% of his net worth has diminished.
Constant Conflict With US SEC
In recent months, the cryptocurrency exchange has become increasingly isolated from the conventional financial system. The Securities and Exchange Commission filed a lawsuit against Binance in June, and the Commodity Futures Trading Commission pursued legal action against the company earlier in the year for failing to comply with regulations that allowed US users to use the Binance platform.
Regulatory authorities accused the company of inadequate money-laundering controls, inflated trading volumes, and improper asset management. Binance is actively contesting these allegations in court.
Following the announcement that Binance’s US exchange would no longer support dollar transactions, Bloomberg’s wealth index lowered its valuation to zero, resulting in a substantial decrease in trading volumes.
In March 2022, during a funding round, Binance.US was valued at $4.7 billion. To increase transparency, Binance.US has recently contemplated listing additional altcoins.
