Binance founder Changpeng Zhao, also known as CZ, is currently spending the summer in a minimum-security prison in Santa Barbara’s Lompoc. This comes after he stepped down as CEO of Binance and plead guilty to anti-money laundering and sanctions violations, resulting in a $4.3 billion fine for the company. Despite this legal trouble, Zhao’s net worth has skyrocketed, with Forbes now estimating it to be $61 billion, making him the 24th richest person in the world.
The main components of Zhao’s wealth come from his 90% equity stake in Binance, valued at $33 billion, and his personal holdings in the exchange-issued token BNB, which Forbes estimates to be 94 million tokens. BNB has seen a massive surge in 2024, outpacing other top cryptos like Bitcoin and Ethereum, reaching an all-time high of $714 with a market capitalization of $110 billion. Despite ongoing legal issues, BNB has continued to perform well and has become a significant source of wealth for Zhao.
Zhao accumulated his BNB stockpile through various means, including receiving 80 million tokens from the founding team of Binance. However, an investigation revealed that Binance’s ICO was undersubscribed, leading to unsold shares being funneled into wallets controlled by Zhao. Currently, Forbes estimates that these wallets hold 58 million BNB, adding to Zhao’s overall wealth. However, there is uncertainty surrounding Zhao’s ability to sell these tokens due to liquidity concerns.
Despite Binance’s large customer base and dominance in the crypto exchange market, very little is known about the inner workings of the company, as it has never undergone an audit. More than half of all BNB trading occurs on Binance’s own exchange, raising questions about transparency and potential conflicts of interest. As Zhao serves his four-month sentence in prison, he watches his BNB billions grow, with the token’s trading volume reaching about $1.6 billion worth of tokens per day.
Overall, Changpeng Zhao’s time in prison has not hindered his wealth accumulation, as his stake in Binance and personal holdings in BNB continue to grow in value. Despite legal issues and regulatory challenges, Binance remains a dominant force in the crypto exchange market, with CZ’s net worth surpassing $61 billion. With the crypto market climbing and BNB performing well, Zhao’s fortune is only expected to increase, solidifying his status as one of the wealthiest individuals in the world.
