Changpeng Zhao’s wealth surges by $25 billion in 2023
Changpeng Zhao, the founder and former CEO of Binance, experienced a remarkable increase in his net worth in 2023, despite the challenges faced by the market and regulatory issues surrounding Binance.
This year presented unique challenges and market volatility. However, amidst these difficulties, the market seized an opportunity to recover from the losses incurred in the previous year due to the Terra and FTX implosions.
According to a recent report by Bloomberg, Zhao’s net worth, mostly held in cryptocurrencies, skyrocketed by a significant margin. The report, citing the Bloomberg Billionaires Index, also mentioned the wealth growth of Coinbase CEO Brian Armstrong.
The co-founders of Gemini, Cameron and Tyler Winklevoss, also witnessed an increase in their portfolio value, joining the ranks of crypto billionaires. However, Bloomberg suggests that Zhao’s wealth growth surpassed that of other crypto entrepreneurs.
Interestingly, this collective increase persisted despite various regulatory concerns in the United States. The Winklevoss twins faced challenges with their Gemini Earn program following Genesis’ solvency issues. The U.S. SEC also filed a lawsuit against Gemini and Genesis.
Binance faced the brunt of the troubles, with lawsuits from the CFTC and the SEC, as well as regulatory issues in other countries. Eventually, Binance agreed to a $4.3 billion fine to settle the CFTC’s case after admitting to charges related to anti-money laundering violations.
As part of the settlement, Zhao is set to face trial in a U.S. court on Feb. 23, with the possibility of a sentence of up to 18 years. However, reports suggest that this could be reduced to 18 months if the billionaire opts for a plea deal.
Furthermore, Binance withdrew from the Russian and Canadian markets this year due to regulatory issues. These growing troubles led to Binance losing a significant portion of its market share as investors withdrew their assets to protect against potential collapse.
Nevertheless, these issues did not hinder the growth of Zhao’s wealth, which is derived from his stake in Binance and holdings in cryptocurrencies such as Bitcoin (BTC) and Binance Coin (BNB).
According to Bloomberg, the recent increase in Zhao’s wealth has brought his current net worth to $37 billion. While this is an impressive figure, it is still 61% lower than the billionaire’s peak net worth of approximately $97 billion in early 2022.
