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Former binance CEO Changpeng Zhao, commonly known as CZ, is still worth $15 billion despite recently pleading guilty to federal money laundering charges.
On Tuesday, the cryptocurrency chief acknowledged his violation of US regulations and evasion of sanctions laws in his quest for cryptocurrency market dominance.
Despite this guilty plea, CZ retains his majority stake in Binance, positioning him as one of the richest convicted criminals in the world and undoubtedly the richest person in the cryptocurrency industry.
Forbes estimates that CZ’s roughly 90% stake in Binance, which makes up the majority of his wealth, is now valued at around $15 billion.
This figure represents an increase from $10.5 billion in April, as reported in Forbes’ 2023 World’s Billionaires List.
Binance generated $3 billion in revenue last year
Over the past year, Binance generated revenue exceeding $3 billion, according to Forbes analysis of the exchange’s spot and derivatives trading volumes tracked by CoinGecko.
The resurgence of the cryptocurrency market has contributed to Binance’s valuation.
Bitcoin, a key indicator of industry performance, has more than doubled in value this year, reaching $36,500 as crypto markets recovered following the FTX collapse.
Shares of Binance competitor Coinbase have tripled since the beginning of the year.
Collectively, the major cryptocurrencies have gained $600 billion in market value by 2023.
However, Binance now faces a different reality, as an independent compliance monitor will monitor its operations for three years and report its findings to the US government.
These limitations can potentially impact Binance’s revenue and jeopardize its status as the world’s leading cryptocurrency exchange.
Binance’s ability to maintain its market share will significantly influence CZ’s fortunes.
In October, Binance facilitated 32% of spot transactions and 50% of derivatives transactions, CCData reported. However, its share in the spot markets has steadily declined for eight consecutive months.
Plea Deal Could Help Binance Regain Customer Trust
It is worth noting that the recent plea deal could alleviate some of the uncertainties surrounding Binance, which could bring back people who were concerned about the company’s legal situation.
“People worried about prosecutors are gone [Binance] already. Today’s announcement gives them some comfort that they can return,” Owen Lau, financial and crypto exchange analyst at Oppenheimer & Co, told Forbes.
“For me, it could have some positive effect on Binance. The big drawback (Binance becoming a dead business) has not materialized. “They are still operational.”
As reportednew CEO of Binance Richard Teng has hinted at the stock market’s ability to pay the $4.3 billion imposed on it by the United States Department of Justice.
Teng, who was named CEO of Binance on Tuesday after Changpeng Zhao resigned, said in a recent post on X (formerly Twitter) that the exchange is in good financial shape.
The statement came in response to a post by Connor Lango, Coinbase’s director of business development, who said that Binance will likely be able to “pay the full $4.3 billion DOJ fine with 0 cryptoasset sales.”
