Binance CEO Loses $12 Billion in Net Worth as Cryptocurrency Fluctuates

The cryptocurrency market is having a downtime as many industry experts are experiencing a decline in their earnings. Recently, the founder and CEO of Binance, Changpeg Zhao, also experienced a substantial decrease in his net worth.

Based on the current Bloomberg Billionaires Index, the CEO of Binance had his net worth slashed by $11.9 billion, which signifies that his earnings dropped by 82%. Zhao's current net worth is $17.3 billion, which is lower than his net worth in 2022, which was $96.9 billion, making him the 11th richest person in the world.

The reason for the decline in Zhao’s net worth was due to a 38% cut in the estimated revenue of his crypto platform, Binance. The recent data released showed that the fall in trading volumes throughout the year contributed to the financial setback.

The Bloomberg Billionaires Index determines Binance’s revenue based on spot and derivatives trading data from crypto-tracking services Coingecko and Coinpaprika, a report says.

Changpeg Zhao, the 46-year-old also played a significant role in events around a crypto figure, Sam Bankman-Fried.

In November, the Binance founder announced the liquidation of a token that was linked to FTX after there were reports that Bankman-Fried’s hedge fund, Alameda Research, held a big position in it.

This led to a rush between FTX customers to remove their funds, which led to the bankruptcy less than a week after the announcement of the Binance CEO.

Bankman-Fried had a net worth of $26 billion in March 2022 and saw it wiped out in November of the same year due to the incident.

Flashback

At the start of the year, Binance witnessed a significant rise in the crypto market, peaking at 62% of the total on-exchange crypto trade in Q1 2023.

This significant rise in Binance was attributed to a zero-fee promotion of popular trading pairs. 

As soon as the promotion ended, Binance's market share dropped to 51% by the end of Q3 2023, as reported by research firm CCData.

Even with the challenges, Binance has seen itself neglected by the traditional financial system.

The Securities and Exchange Commission filed a lawsuit against Binance in June, and earlier in the year, the Commodity Futures Trading Commission pushed for regulatory action, saying that the violations related to access for US users, inadequate anti-money laundering controls, inflated trading volumes, and mishandling of client assets, a report said.

However, Binance denied all allegations, as it’s currently defending its trial in court. In June 2023, the Bloomberg wealth index devalued Binance’s US exchange to zero after it announced that it would suspend all transactions in dollars, which led to a reduction in trading volumes.