27-12-2023 (NEW YORK) Despite stepping down as CEO of Binance earlier this year, Changpeng Zhao, the founder of the leading cryptocurrency exchange, has witnessed a remarkable increase in his wealth. Surging by nearly US$25 billion (equivalent to approximately S$33.1 billion), Zhao’s fortune has exceeded five times the amount of the fine imposed by the United States.
Following the market crash in 2022, Bitcoin has experienced a strong rebound of more than 160%. This resurgence has propelled the net worth of cryptocurrency entrepreneurs, with Changpeng Zhao leading the pack. According to the latest Bloomberg Billionaires Index, Zhao’s total wealth now stands at an estimated US$37 billion. However, this figure still falls short of the peak value of nearly US$97 billion witnessed in early 2022 and even the year’s high of US$50.4 billion reached in July.
The majority of Changpeng Zhao’s wealth is derived from his holdings in Binance. Although the exchange has encountered some loss in market share this year, it has benefited from increased trading volume during the cryptocurrency rebound. Aside from his Binance holdings, Zhao also possesses Bitcoin and Binance Coin (BNB), the native token of Binance. However, these assets are not factored into the calculations of the Billionaires Index. Despite numerous media requests for comment, Changpeng Zhao has remained silent.
In November of this year, Changpeng Zhao reached a comprehensive settlement agreement with the U.S. Department of Justice. As part of the agreement, he agreed to plead guilty to criminal and civil charges and resign as CEO of Binance, allowing the exchange to continue its operations within the United States. Additionally, Zhao accepted personal responsibility for a $50 million fine, while retaining his stake in Binance. The theoretical maximum sentence facing Zhao is 10 years in prison, but the plea agreement anticipates an actual sentence of no more than 18 months. The U.S. Department of Justice has yet to disclose the length of the prison term they will seek. Zhao Changpeng’s sentencing is scheduled for February 23, 2024.
Changpeng Zhao is not the sole billionaire to benefit from the cryptocurrency rally of this year. For instance, Brian Armstrong, the CEO of Coinbase, has seen his wealth increase by $5.8 billion.
Commenting on the volatility of cryptocurrency investments, Campbell Harvey, a finance professor at Duke University, stated, “Investing in cryptocurrencies is not for the faint of heart. One must be prepared for the fluctuations. These investors did not become billionaires by mere chance. They will continue to succeed by selling their holdings during market downturns and recognizing the long-term opportunities this sector presents.”
