Changpeng Zhao, who helped start the company Binance, has seen a big drop in how much money he has. It went down by a really large amount, $11. 9 billion This drop in business is happening while Binance, a big cryptocurrency exchange, is dealing with lower trading activity and a lot of rules from the government. CZ’s money dropped a lot, more than 80%, from its highest point in January 2022. At that time, CZ was the 11th richest person in the world, with almost $97 billion. As of October 26, 2023, he is the 95th richest person on the Bloomberg Billionaires Index, with a net worth of $17. 3 billion
Binance is having problems beyond its CEO losing money. The exchange has been sued twice by the U. S The SEC and CFTC are government agencies that oversee financial trading and investments. In June, the SEC sued Zhao, Binance, and its U. S-basedUS, for doing illegal things like selling securities without permission and not taking care of customer’s money. Zhao was singled out as the person in charge in the lawsuit.
Binance’s market share is affected by regulatory disagreements
The CFTC also said in March that Binance did not register correctly with the regulatory authority. Both Zhao and Binance strongly deny the claims from the government and are trying to get the lawsuits thrown out.
Binance is having problems with legal issues, and also, the amount of trading on their exchange has been going down. As of September, its market share had been going down for seven months in a row, and now it’s at 34. 3% In January 2022, Binance had a big share of the spot market, but it was less than before, so it lost some of its dominance in the market.
Binance’s American branch, Binance. US, has seen less trading activity in the past few months, which has made it harder for the exchange overall.
Changpeng Zhao’s money went down, but not as much as Sam Bankman-Fried’s did. In November 2022, a cryptocurrency exchange called FTX, started by Bankman-Fried, said it didn’t have enough money just a few days before it went bankrupt. This meant that Bankman-Fried lost all of his $16 billion.
Some people think that the crisis started when CZ posted a message on Twitter saying that Binance planned to sell its FTX Token (FTT) stocks. This news caused many people to take their money out of FTX. At first, Zhao wanted to buy the struggling exchange but then changed his mind and took back his offer less than 48 hours later.
Bankman-Fried went to court on October 26 to testify in his own trial because his business was having big money problems. He said he didn’t do the crime. He is accused of fraud and conspiracy. This is a troubled time in his career.
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