Crypto Billionaire Changpeng Zhao’s Net Worth Plummets by 80% Amid Binance’s Regulatory Battles

Crypto Billionaire Changpeng Zhao’s Net Worth Plummets by 80% Amid Binance’s Regulatory Battles

Crypto News – In a stark contrast to the strong recovery in the cryptocurrency market in 2023, Changpeng Zhao, the billionaire founder of Binance, has witnessed an alarming 80% decline in his net worth since the year began.

Binance’s Struggles in 2023

Binance, one of the world’s largest cryptocurrency exchanges, has encountered a series of formidable challenges in 2023, primarily in its ongoing legal battles with the U.S. Securities and Exchange Commission (SEC) and other global regulatory authorities. At the start of the year, Binance held a substantial 62% market share in cryptocurrency trading, largely fueled by its zero-fee promotion for popular trading pairs. At this point in January 2023, Changpeng Zhao’s net worth stood at an impressive $96 billion.

However, as the promotional period came to a close, Binance’s market share dwindled to 51% by the end of the third quarter, as reported by the research firm CCData. Bloomberg data indicates a 38% drop in the company’s revenue as trading volumes sharply declined amidst the regulatory disputes. Notably, this decline in Binance’s fortunes resulted in an astounding $12 billion reduction in Changpeng Zhao’s net worth, ultimately bringing it down to $17.2 billion. This represents an astonishing 80% decrease in his net worth since the beginning of 2023.

Ongoing Legal Battle with the US SEC

Over recent months, Binance has faced increasing isolation from the traditional financial system. In June, the exchange was hit with a lawsuit from the U.S. Securities and Exchange Commission (SEC). Earlier in the year, the Commodity Futures Trading Commission (CFTC) also initiated legal action against the company for failing to comply with regulations that allowed U.S. users to access the Binance platform.

Regulatory authorities have accused Binance of having inadequate money-laundering controls, inflating trading volumes, and mishandling client assets. Binance vehemently contests these allegations and is actively defending its position in court.

Furthermore, when Binance’s U.S. exchange announced it would cease supporting dollar transactions, Bloomberg’s wealth index recalibrated its valuation to zero, leading to a significant decline in trading volumes. In a funding round in March 2022, Binance.US was valued at $4.7 billion. However, in an effort to enhance transparency, Binance.US has recently explored the possibility of listing new altcoins.