Forbes report suggests that Changpeng Zhao’s wealth surged by $3 billion during his prison term, while Bloomberg believes it dropped by $5.7 billion.
Key Notes
- Forbes estimates CZ’s net worth at $61 billion by late September 2024, reflecting a $3 billion increase since July.
- Bloomberg disputes this, claiming CZ’s wealth dropped by $5.7 billion during his prison term.
- After his release, CZ emphasized his long-term investment strategy, prioritizing “impact over returns”.
Binance co-founder and ex-CEO Changpeng Zhao, widely known as CZ, has just finished serving a four-month jail term. However, the real intrigue lies in how much wealth he might have amassed during his stint in prison. Certain reports imply that CZ could have gained more earnings while incarcerated than many executives make in their entire careers.
While Changpeng Zhao’s wealth in Bitcoin (BTC) and Binance Coin (BNB) are publicly known, much of his wealth is tied to equity in privately held companies. As a result, calculating his exact net worth is complicated. Nonetheless, estimates indicate that CZ may have grown his personal fortune by as much as $25 million for each day he spent in prison. The discrepancy between reports from Forbes and Bloomberg further highlights the enigma surrounding his financial situation.
Conflicting Reports on CZ’s Wealth
A report from Forbes estimated CZ’s net worth at $61 billion by September 27, 2024. This suggests CZ added more than $3 billion to his wealth, up from $57.8 billion in July. Forbes’ report appears to factor in a more optimistic valuation of CZ’s crypto holdings and equity in Binance.
In contrast, Bloomberg’s analysis suggests Zhao’s wealth actually decreased during his imprisonment. Bloomberg estimates that his fortune dropped by $5.7 billion, from $36.5 billion in June to $30.8 billion by the time of his release. Bloomberg’s more conservative valuation stems from its decision to assign a zero-dollar value to his BTC and BNB holdings and to apply a 50% discount to his equity in Binance. This evaluation is based on comparisons with companies like Coinbase and Galaxy Digital, whose valuations have also suffered amid industry declines.
CZ’s Legal Battle and Imprisonment
CZ’s legal troubles began when he pleaded guilty in November 2023 to violating the Bank Secrecy Act, a charge that allowed money laundering through Binance. As part of his plea agreement, CZ resigned as Binance CEO, paid a $50 million fine. He also agreed to not publicly dispute the U.S. government’s version of events.
After some delays, Zhao began his prison sentence on June 2, 2024, at a minimum-security jail in California. He was originally set for release on September 29 but was freed two days early due to the weekend.
Though only CZ truly knows his financial situation, the conflicting reports have sparked widespread curiosity within the crypto community, fueling speculation about how much the industry mogul actually earned during his time in prison.
Soon after his release, Binance co-founder shared a post on X, outlining his future commitments. He stated that he will continue investing in the blockchain sector, along with other evolving advanced technologies like artificial intelligence (AI). Zhao characterized himself as someone who focuses on “impact, not returns”.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Julia Sakovich on X
