Zhao Changpeng (Changpeng Zhao)

Zhao Changpeng (Changpeng Zhao)

Biography

2022: Changpeng Zhao is the richest man on the planet in the crypto sector ($96 billion)

In January 2022, Changpeng Zhao became the richest man on the planet among those whose work is connected with. cryptocurrencies The fortune of the founder and CEO of the cryptocurrency exchange Binance is estimated at $96 billion.

This was reported on January 9, 2022 by Bloomberg. It noted that Changpeng Zhao was ahead of Indian businessman Mukesh Ambani (his fortune is $92.9 billion) and is located on the 11th line of the entire rating of the richest people. Previously, the founder and head of the FTX cryptocurrency exchange Sam Bankman-Fried was in the lead in terms of the state among cryptocurrency billionaires - his wealth in 2021 was estimated at $22.5 billion.

Changpeng Zhao's breakthrough is associated with the rapid growth of Binance's business: if in 2020 the exchange earned about $1 billion, then a year later - already $20 billion. According to The Wall Street Journal, the company in the event of a planned initial placement may receive an estimate of $300 billion. Zhao owns about 90% of Binance's shares (data for January 2022).

As the publication clarifies, the real size of Zhao's fortune may be even larger, since the assessment does not include his personal reserves of cryptocurrency - bitcoin and Binance Coin tokens. Earlier, the entrepreneur told how in 2014 he sold his house and invested all the proceeds in bitcoin at around $600. By January 10, 2022, the cryptocurrency rate is at $49,000 per token.

Changpen Zhao himself declined to comment on Bloomberg's calculations, and Binance officials disputed the accuracy of the firm's valuation and the company's creator's capital.

Cryptocurrency is still growing. It is subject to high levels of volatility. Any number you hear one day will be different from the number you hear the next day, Binance pointed out.[1]

2023: A court in the United States sentenced Zhao to pay a fine of $150 million. Binance will pay $2.7 billion

A US court on December 19, 2023 ruled against the cryptocurrency exchange Binance and its former CEO Changpeng Zhao, approving billions in fines for money laundering in a case brought by the US Commodity Futures Trading Commission.

Zhao will pay $150 million and Binance will pay $2.7 billion to the CFTC as a result, the agency said in a statement.

2024

Sentence - four months in prison in the case of illegal cryptocurrency transactions worth $900 million

cryptoexchanges Binance On April 30, 2024, the Seattle Federal Court sentenced founder Changpeng Zhao to four months in prison in a financial crimes case. We are talking about illegal cryptocurrency transactions in the amount of approximately $900 million.

Zhao, also known in the cryptocurrency world as CZ, opened Binance in the summer of 2017 when he was 40. Prosecutors subsequently said Binance used the Wild West model, encouraging criminal gangs. It is said, in particular, that the crypto exchange did not report to the supervisory authorities about more than 100 thousand suspicious transactions, including those related to certain terrorist organizations.

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Unsplash

In November 2023, Zhao struck a deal with the U.S. government to complete a years-long investigation against Binance. Under the terms of this agreement, he resigned as CEO of Binance and agreed to pay a fine of $50 million.

The case file stated that Zhao had placed Binance's growth and profitability as a more important priority than enforcing U.S. law. The prosecution demanded a sentence of three years in prison for Zhao, but in fact the sentence turned out to be much milder. At the same time, the court did not satisfy the lawyers' petition for punishment in the form of probation.

I'm very sorry. I believe the first step to taking responsibility is to fully acknowledge the mistakes. I have failed to implement an adequate anti-money laundering programme. Now I recognize the seriousness of this mistake, "Zhao said.

Lawyer Mark Bartlett says Zhao "wanted to make a difference," but made some mistakes. At the same time, it is emphasized that the three-year period requested by prosecutors is inappropriate, since there is no evidence that Zhao knew in advance about illegal activities within his platform.^[2]

Generating $3bn in revenue while in prison

In early October 2024, it became known that the founder and former CEO of the Binance cryptocurrency exchange Changpeng Zhao was able to earn at least $3 billion during imprisonment. According to Forbes, Zhao continues to build fortunes despite scandals and money laundering proceedings.

Binance The founder was in Lompoc II prison on the central coast California for 117 days - from June 2 to September 27, 2024. Zhao is considered the richest person ever in prison in. USA Forbes estimates that as of July 12, 2024, his capital was about $57.8 billion. And at the time of release from prison, this value reached $61 billion.

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Bloomberg

Thus, in about four months, Zhao's fortune increased by more than $3 billion. This is equivalent to earnings of $25 million for each day spent in custody.

At the same time, Bloomberg cites other data. This news agency estimates Zhao's assets as of June 2, 2024 at $36.5 billion. By September 27, the fortune of the founder of Binance, according to Bloomberg, decreased to $30.8 billion. Thus, during his stay in prison, Zhao could lose $5.7 billion.

Such different indicators are explained by different approaches to capital valuation. While Forbes does not disclose its methodology, Bloomberg does not take into account bitcoins and BNB tokens, since the volume of these assets is unknown. In addition, Bloomberg is discounting Zhao's stock price in Binance.com by 50%. According to Bloomberg, as of October 3, 2024, Zhao's fortune is $26.7 billion, which corresponds to 68th place in the ranking of the richest people in the world. In turn, Forbes indicates a figure of $58.8 billion and 25th place in its list of billionaires.^[3]

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