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Binance co-founder and CEO, Changpeng “CZ” Zhao, has experienced a significant reduction in his net worth, amounting to a staggering $11.9 billion, largely attributed to declining trading volumes on the Binance exchange.On October 26, the Bloomberg Billionaires Index revised down Binance’s revenue estimates by 38% due to a slump in exchange volumes, causing Zhao’s ranking on the list of the world’s wealthiest individuals to plummet to the 95th position.Zhao’s current net worth stands at $17.3 billion, marking an astonishing 82% decline from its peak of $96.9 billion in January 2022, when he held the 11th position on the global rich list.The decline in Zhao’s wealth correlates with the downturn in the cryptocurrency market, where Binance played a significant role.Bloomberg’s index calculated Binance’s revenues by analyzing data from crypto data aggregators CoinGecko and Coinpaprika, focusing on spot and derivatives trading.Notably, Binance’s spot trading market share experienced a continuous decline for seven consecutive months, plummeting to 34.3% as of September, compared to over 55% in January.This decline in trading volumes was also observed at Binance.US, the United States-based arm of the exchange.READ MORE: <a href="https://www.cryptointelligence.co.uk/1m-crypto-drop-celebrate-betfurys-4th-anniversary/" rel="noopener noreferrer nofollow">$1M Crypto Drop: Celebrate BetFury’s 4th Anniversary</a>Zhao’s financial setbacks have been further exacerbated by legal challenges.The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) both filed lawsuits against Zhao, Binance, and Binance.US.The SEC accused the exchanges of operating illegally, selling unregistered securities, and mishandling customer assets, designating Zhao as the “controlling person.”Meanwhile, the CFTC alleged that Binance failed to properly register with the regulator. In response, Zhao and Binance have vehemently denied these allegations and are actively seeking to dismiss both lawsuits.Comparatively, the decline in Zhao’s wealth is reminiscent of his former rival, Sam Bankman-Fried, who faced a massive loss of his $16-billion fortune in November 2022.This financial crisis was triggered by CZ’s announcement that Binance was selling its FTX Token (FTT) holdings, prompting a rush of withdrawals from FTX.Although Zhao initially attempted to acquire FTX, he withdrew from the deal within 48 hours.Bankman-Fried, on the other hand, found himself in the midst of a criminal trial, where he has pleaded not guilty to two counts of fraud and five counts of conspiracy, underscoring the tumultuous nature of the cryptocurrency industry.<a href="https://www.cryptointelligence.co.uk/crypto-intelligence-blockchain-council/" rel="noopener noreferrer nofollow">Discover the Crypto Intelligence Blockchain Council</a>

Binance CEO CZ’s Net Worth Plummets by $11.9 Billion Amid Declining Trading Volumes

Crypto Intelligence

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