Former Binance CEO Changpeng Zhao, also known as CZ, remains a billionaire despite pleading guilty to federal money laundering charges. In his quest for dominance in the crypto market, CZ acknowledged his violation of US regulations and evasion of sanctions laws. Despite his guilty plea, CZ still holds the majority stake in Binance, making him one of the richest convicted felons globally and the wealthiest person in the cryptocurrency industry.
Retaining Wealth Through Binance
Forbes estimates CZ’s approximate 90% stake in Binance, which constitutes the majority of his wealth, is currently valued at around $15 billion. This represents an increase from $10.5 billion in April, as reported in Forbes’ 2023 World’s Billionaires list.
Binance has experienced significant revenue growth over the past year, surpassing $3 billion. This increase in revenue can be attributed to the resurgence of the cryptocurrency market. Bitcoin, a key indicator of the industry’s performance, has more than doubled in value this year, reaching $36,500. Other major cryptocurrencies have also seen substantial gains in market value, totaling $600 billion in 2023.
Challenges Ahead for Binance
While Binance’s valuation and CZ’s wealth have continued to rise, the exchange now faces challenges due to regulatory scrutiny. An independent compliance monitor will oversee Binance’s operations for three years, reporting findings to the US government. These constraints may impact Binance’s revenue and jeopardize its position as the leading global cryptocurrency exchange.
Binance’s ability to maintain its market share will greatly influence CZ’s fortune. It is worth noting that the recent plea deal could alleviate some of the uncertainties surrounding Binance, potentially attracting back individuals who were concerned about the company’s legal situation.
“People concerned by the prosecutors have left [Binance] already. Today’s announcement gives them some comfort that they can come back,” said Owen Lau, a crypto and financial exchange analyst at Oppenheimer & Co.
The new Binance CEO, Richard Teng, has expressed confidence in the exchange’s financial stability. Teng stated that Binance is in good shape financially and will likely be able to pay the $4.3 billion fine imposed by the US Justice Department without selling any crypto assets.
“Binance will most likely be able to ‘pay full $4.3B DoJ fine with 0 crypto asset sales,'” commented Connor Lango, director of business development at Coinbase.
