Binance Founder CZ Loses $12 Billion on Crypto-Trading Slump (2024)

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Binance Founder CZ Loses $12 Billion on Crypto-Trading Slump? ›

The Bloomberg Billionaires Index slashed its estimate of revenues at crypto exchange Binance by 38% after data showed volumes at the firm declined this year. That wiped $11.9 billion from the fortune of Binance's founder, Changpeng Zhao, known as CZ, dropping him to $17.2 billion.

Changpeng Zhao, the former head of the world's largest cryptocurrency trading company, was sentenced to four months in jail on Tuesday in a Seattle courtroom.

CZ's upward revision has two components. First, his 90% equity stake in Binance, the large crypto exchange, is valued at $33 billion despite CZ stepping down as CEO in November 2023 as part of a settlement with the U.S. Department of Justice in which he pled guilty to anti-money laundering and sanctions violations.

Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating US money-laundering laws at the world's largest cryptocurrency exchange.

According to Bloomberg Billionaires Index, Zhao was ranked the 69th-richest person in the world, and richest Canadian overall, with a net worth estimated at $37.3 billion as of May 2024.

Authorities charged CZ with multiple violations related to Binance's operations in the US. He stepped down from his position as the CEO of Binance in November 2023 and Richard Teng took his chair. In May 2024, a court sentenced him to four months in jail for financial crimes.

Changpeng Zhao, the founder of the world's leading cryptocurrency exchange, was sentenced on Tuesday to four months in prison after pleading guilty last year to charges that he failed to maintain an effective anti-money laundering program.

59.1 billion USD (2024)

Changpeng Zhao / Net worth

Binance's Changpeng Zhao Clings To Multibillion-Dollar Fortune After Guilty Plea. Changpeng Zhao became crypto's richest person while evading sanctions laws. His pleading guilty to money laundering charges is unlikely to change that–at least for now.

Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high-frequency trading software. Binance was initially based in China, then moved to Japan shortly before the Chinese government restricted cryptocurrency companies.

Is Binance under trouble? ›

Binance's Legal Battles and Compliance Challenges

Binance has faced numerous legal issues, including: Alleged regulatory violations. Non-compliance with securities laws. Challenges adapting to evolving regulatory standards.

Is Binance Exchange Safe? Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.

The spat between Binance and WazirX started back in August 2022, when the Enforcement Directorate (ED) had frozen bank assets of WazirX worth Rs 64.67 crore in relation to allegedly assisting a bunch of accused loan apps in money laundering and fraud through the transfer of virtual crypto assets.

This techie is the world's richest prisoner, with a net worth of $43 billion. Binance founder Changpeng Zhao sentenced to 4 months for failing to prevent cybercriminals. Guilty of US laws violations.

Binance: Since Binance is the world's largest crypto exchange, it makes sense that the company's cold storage wallets have large amounts of BTC. Currently, the largest single BTC wallet with 252,597 BTC belongs to Binance.

Changpeng Zhao, known as "CZ," founded Binance, which rapidly grew to be the largest cryptocurrency exchange in the world by daily trading volume. With a net worth estimated at $39.6 billion as of March 2024, Zhao's story reflects the fast-paced and unpredictable world of cryptocurrency.

In April, a federal judge sentenced CZ to four months in prison – a much shorter sentence than the three years federal prosecutors requested, but more than other crypto executives like former BitMex CEO Arthur Hayes received for the same crime.

Sam Bankman-Fried, on trial for fraud in New York, isn't the only crypto founder feeling the heat.

CEO Changpeng Zhao founded Fusion Systems in 2005 in Shanghai; the company built high-frequency trading systems for stockbrokers.