Despite recently admitting guilt to federal money laundering charges, former Binance CEO Changpeng Zhao, popularly known as CZ, maintains a substantial net worth of $15 billion. CZ acknowledged violating US regulations and sanctions laws, yet he retains a majority stake in Binance, making him one of the wealthiest individuals with a criminal record globally and the richest in the cryptocurrency industry.
Forbes estimates CZ’s approximate 90% stake in Binance, a major contributor to his wealth, to be valued at around $15 billion, indicating an increase from $10.5 billion in April according to Forbes’ 2023 World’s Billionaires list.
Over the past year, Binance has seen substantial revenue, surpassing $3 billion, propelled by the resurgence of the cryptocurrency market. Bitcoin’s value more than doubled, reaching $36,500, contributing to the overall market’s $600 billion gain in 2023. However, Binance now faces challenges as an independent compliance monitor oversees its operations for three years, reporting findings to the US government, potentially impacting revenue and market dominance.
Binance’s ability to maintain its market share, crucial for CZ’s fortune, is under scrutiny. Despite facilitating a significant percentage of spot and derivatives trades, Binance’s share in spot markets has steadily declined for eight consecutive months.
The recent plea deal, while acknowledging guilt, could help Binance regain customer trust, attracting individuals concerned about the legal situation. Analysts suggest that this development might have a positive impact on Binance, preventing the worst-case scenario of becoming a defunct business.
Newly appointed Binance CEO Richard Teng has expressed confidence in the exchange’s financial health and hinted at its capability to pay the $4.3 billion fine imposed by the US Justice Department. This statement came after CZ stepped down, emphasizing Binance’s ongoing operational status amid evolving legal challenges.
