Binance CEO Changpeng Zhao is $11.9 billion poorer after trading volume on his exchange platform fell in recent months, according to the Bloomberg Billionaires Index. On October 26, Bloomberg revealed that Binance’s revenue fell by about 38% after the exchange struggled on multiple fronts this year.
With the loss of this $11.9 billion, Changpeng Zhao is still the 95th richest man in the world.
What’s happening with Binance?
In September it was announced that Binance’s market share fell for the seventh month in a row to 34.3%. As of January 2023, Binance’s market share still stands at 55%. This has everything to do with the battle that Changpeng Zhao’s exchange platform is waging with lawmakers on multiple fronts.
For example, Binance had to leave the Netherlands earlier this year after the exchange platform failed to obtain a license from De Nederlandsche Bank.
In America, Binance (and its CEO Changpeng Zhao) were indicted in June. The then US financial regulator alleged that Binance was trading unregistered securities on its exchange platform; and that they would misuse their users’ money.
Overall, Binance is in trouble and the exchange’s CEO sees this in his portfolio, which has shrunk by $11.9 billion.
Nothing compared to Sam Bankman-Fried
By the way, Binance CEO Changpeng Zhao’s losses are nothing compared to former FTX CEO Sam Bankman-Fried. When it was revealed in November 2022 that his exchange platform was abusing customers’ money, he was forced to squander his $16 billion fortune and thus fall into the abyss.
Some believe that the collapse of Sam Bankman-Fried’s FTX is a direct result of Binance CEO Changpeng Zhao’s tweets. Shortly before FTX collapsed, it announced that Binance would liquidate all the FTX (FTT) tokens it still held.
In retrospect, this turned out to be the right decision, as FTX was not liquid at all and had lost client assets through questionable investments through Alameda Research; the investment arm of the stock exchange platform.
The criminal trial against Sam Bankman-Fried has begun in the US and it is expected that his actions will land him behind bars for the rest of his life.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
