Co-founder and CEO of Binance Changpeng “CZ” Zhao has seen its net worth reduced by $11.9 billion amid falling trading volumes on its stock market.
On October 26, the Bloomberg Billionaires Index cut Binance's revenue is estimated at 38% amid a drop in trading volumes, which knocked Zhao down to 95th among the rich. list.
Zhao's net worth is now a paltry $17.3 billion, recording an 82% drop from its peak of $96.9 billion in January 2022, when he was He is ranked 11th among the richest people in the world.
The Bloomberg Index calculated Binance's revenue from spot and derivatives trading data from crypto data aggregators CoinGecko and Coinpaprika.
In September, the exchange's spot trading market share had fallen by seven consecutive months at 34.3%. In January, Binance's spot market share exceeded 55%.
Binance.US, its US-based division, also saw a hit to volumes. new lows last month.
The drop in Zhao's net worth and the decline in Binance's trading volumes are due to twin lawsuits from the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
The second sued Zhao, Binance and Binance.US in June, alleging that the exchanges operated illegally, sold unregistered securities and mismanaged client assets, with Zhao named as their "controlling person."
The CFTC lawsuit in March He claimed that Binance did not properly register with the regulator. Zhao and Binance reject both regulators' allegations and seek to dismiss both lawsuits.
The recent decline pales in comparison to that of CZ's former rival Sam Bankman-Fritowho saw his $16 billion fortune effectively wiped out in November 2022 after FTX revealed its liquidity crisis just days before filing for bankruptcy.
Some believe the crisis was started by a tweet from CZ when he announced that Binance I was selling their FTX Token (FTT) holdings, triggering a wave of FTX withdrawals. Zhao initially moved to buy the exchange in conflict but taken out less than 48 hours later.
Bankman-Fried took the witness stand at her own criminal trial on October 26, where she previously pleaded not guilty to two counts of fraud and five counts of conspiracy.
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