According to Forbes, Changpeng Zhao’s wealth increased by $3 billion during his prison sentence, while Bloomberg asserts that it decreased by $5.7 billion.
Binance co-founder and former CEO Changpeng Zhao, commonly referred to as CZ, has recently completed a four-month prison sentence. Nevertheless, the genuine fascination is the potential fortune that he may have acquired during his time in prison. There are reports that suggest that CZ could have earned more money while incarcerated than many executives earn in their entire careers.
While the public is aware of Changpeng Zhao’s wealth in Bitcoin (BTC) and Binance Coin (BNB), a significant portion of his wealth is associated with equity in privately held companies. Consequently, it is challenging to determine his precise net worth. However, estimations suggest that CZ may have increased his personal wealth by as much as $25 million for each day he was incarcerated. The financial enigma encircling him is further underscored by the discrepancy between Forbes and Bloomberg reports.
By September 27, 2024, Forbes estimated that CZ’s net worth was $61 billion. This implies that CZ’s wealth has increased by over $3 billion, from $57.8 billion in July. Forbes’ report seems to incorporate a more optimistic assessment of CZ’s crypto holdings and equity in Binance.
In contrast, Bloomberg’s analysis indicates that Zhao’s wealth actually decreased during his imprisonment. Bloomberg anticipates that his fortune fell by $5.7 billion, from $36.5 billion in June to $30.8 billion at the time of his release. Bloomberg’s valuation is more conservative due to its determination to attribute a zero-dollar value to his BTC and BNB holdings and to impose a 50% discount to his equity in Binance. Comparisons with companies such as Galaxy Digital and Coinbase, which have also experienced valuation declines in response to industry downturns, serve as the foundation for this assessment.
CZ’s legal difficulties commenced in November 2023 when he entered a guilty plea to violating the Bank Secrecy Act, a charge that permitted the laundering of money through Binance. CZ resigned as CEO of Binance and paid a $50 million sanction as part of his plea agreement. Additionally, he consented to refrain from publicly disputing the U.S. government’s account of the events.
Zhao commenced his prison sentence at a minimum-security facility in California on June 2, 2024, following a series of postponements. He was scheduled to be released on September 29, but he was released two days early as a result of the weekend.
Despite the fact that only CZ is truly aware of his financial situation, the conflicting reports have spurred widespread curiosity within the crypto community, fueling speculation about the amount of money the industry magnate actually earned during his time in prison.
The co-founder of Binance uploaded a post on X shortly after his release, which delineated his forthcoming obligations. He declared that he will persist in his investment in the blockchain sector, as well as in other sophisticated technologies that are in the process of evolving, such as artificial intelligence (AI). Zhao identified himself as an individual who prioritizes “impact, not returns.”
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