Skip to main content

Changpeng Zhao, the mastermind behind Binance – the world’s premier crypto exchange, witnessed his net worth plummet by $12 billion due to issues with the trading platform.

According to the Bloomberg Billionaires Index, a 38% reduction was noted in Binance’s earnings projections due to declining sales on the platform. This led to Zhao’s fortune dipping from $11.9 billion to a current $17.3 billion.

Moreover, Zhao made a notable move concerning the founder of FTX crypto exchange, Sam Bankman-Fried. “In November 2022, the founder of Binance announced that he was liquidating the token associated with FTX following a report that Bankman-Fried’s hedge fund Alameda Research also held a large position in it.”

The aftermath of this announcement was tumultuous for FTX. Numerous clients hastily attempted to retract their funds, overwhelming the exchange’s capacity to process withdrawals. Within days, FTX declared bankruptcy, resulting in Bankman-Fried’s assets diminishing from a zenith of $26 billion in the previous March to nil.

Earlier this year, Binance experienced a surge in its market share, accounting for 62% of all crypto exchange transactions in Q1, driven by no-fee promotions for sought-after trading pairs. However, post-promotion, its market share receded to 51% by the third quarter’s close.

Adding to Binance’s challenges, the Securities and Exchange Commission initiated legal proceedings against it in June. Consequently, Bloomberg’s Wealth Index adjusted the valuation of Binance’s US operations to zero upon its declaration to discontinue dollar transactions.