Changpeng Zhao crowned as the richest individual in the cryptocurrency sector— Here
Changpeng Zhao, the founder and former CEO of Binance, continues to hold the top spot on Forbes’ list of cryptocurrency billionaires. Despite facing legal issues and billions of dollars in fines in 2023, Zhao has managed to maintain his wealth. Forbes recently updated its billionaire list, which included 17 individuals from the cryptocurrency industry, and Zhao’s estimated fortune was recorded at $47.7 billion.
Zhao’s fortune has been built mainly through the success of Binance. In 2017, he launched Binance Coin (BNB) and distributed $200 million worth of the coin. Since its launch, BNB’s value has skyrocketed, with its current price at around $540. With a market capitalization of approximately $80 billion, BNB ranks as the fourth largest cryptocurrency.
Zhao acquired a significant but undisclosed portion of Binance after five rounds of funding, with a total investment of $3 billion. This boosted his net worth to an estimated $100 billion in 2022. Additionally, Binance has actively pursued acquisition strategies to diversify its business. Zhao’s acquisition of a cryptocurrency data tracking site in early 2020 was part of this strategy.
Binance has reported substantial profits, with annual revenues of approximately $5.5 billion in 2020, $20 billion in 2021, and $12 billion in 2022. However, the unregulated growth of the broader crypto industry and Binance came to an end in 2023. Regulatory issues led to a decline in Binance’s market share and on-chain activities, resulting in decreased reserves and trading volumes. The company’s value decreased, bringing down Zhao’s net worth to $40 billion. Zhao eventually resigned as CEO and agreed to pay a $50 million fine, while the company offered to pay $4.3 billion in fines and compensation.
Apart from his ownership in Binance and investments in BNB and Bitcoin, Zhao also owns other assets. He owns at least two properties in Dubai, a city he admires for its crypto-friendly environment. He previously avoided owning cars or real estate due to their illiquidity but changed his stance and invested in Dubai real estate to show his commitment to the city.
Zhao’s investments outside of Binance, BNB, and Bitcoin include FTX, a rival cryptocurrency exchange, and Elon Musk’s acquisition of Twitter. He invested $500 million in the Twitter acquisition as a corporate strategy. In 2021, Zhao cashed out $2.1 billion from FTX, which turned out to be a wise move as FTX collapsed in 2022.
In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, accusing the company of regulatory bypassing and mishandling client assets. The SEC’s actions caused Binance.US to stop transacting in dollars, significantly reducing its trading volumes. This led to a sharp decline in Zhao’s net worth, which dropped by 82% at one point. By October 2023, tightening regulations and a market downturn further reduced his fortune to $17.2 billion.
However, by the end of 2023, Zhao’s wealth began to recover. Bloomberg estimated his personal capital to be $37.2 billion, a significant increase from the $50 billion he had in June. This growth is more than five times the amount that Binance agreed to pay in fines and settlements with the U.S. Department of Justice. Bloomberg experts determined Zhao’s wealth based on his stake in Binance and Binance.US, as well as his investments in Bitcoin and BNB.
While the exact profits and assets of Binance and Zhao are not publicly disclosed, the exchange’s dominant market share suggests that its profits could be substantial. As the owner of the largest share in the company, Zhao would greatly benefit from its success. Furthermore, the overall recovery of the cryptocurrency market would also contribute to Zhao’s wealth growth. Although recent profit figures from Binance have not been released, it is reasonable to assume that Zhao’s wealth has not only been preserved but has also grown due to the increase in market share and overall capitalization of digital assets.
