Changpeng Zhao, the creator of Binance and a beleaguered billionaire, has seen advances in his net worth of up to $8.42 billion, bringing his total wealth to around $50 billion. This has increased his winnings for the year by $13.9 billion.
According to data from the Bloomberg Billionaire Index, Zhao’s net worth increased from $39.9 billion to $48.3 billion as the share price of Binance increased from $549.19 on March 22, 2024, to $554.30 as of Monday morning, March 25, 2024.
The majority of Zhao’s wealth is ascribed to his ownership of a controlling interest in Binance, which as of August 2023 had over 150 million users and is acknowledged as the biggest cryptocurrency exchange globally in terms of trading volume.
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
Reputably prominent in the cryptocurrency space, Changpeng Zhao is said to possess a substantial 90% of Binance, according to filings and public remarks made in jurisdictions where ownership information is publicly accessible.
Zhao is the owner of Binance.US, a related exchange that is based in the US, in addition to his investment in Binance. Based on its fundraising history, Zhao is projected to control 86% of Binance.US, which was valued at $4.7 billion at a funding round in March 2022.
However, when the exchange ran into legal issues, Zhao’s ownership of Binance.US suffered a serious blow. In response to a Securities & Exchange Commission lawsuit in June 2023, Binance.US declared its intention to become a cryptocurrency-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, Zhao was rated as the 35th richest person in the world as of late December 2023 according to the Bloomberg Billionaires Index. Early in 2023, Binance—a well-known participant in the cryptocurrency industry—saw a sharp increase in market domination, taking a sizable 62% of all on-exchange cryptocurrency deals in the first quarter.
This incredible accomplishment was partly ascribed to a zero-fee campaign that was run for well-liked trading pairs to encourage customers to trade on the site.
However, once the promotional time ended, Binance saw a decrease in its market share; at the end of the third quarter, it had dropped to 51%, based on data from research firm CCData. This decline in market share highlighted the difficulties Binance had in maintaining its leadership.
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.
