According to a Bloomberg report, Former Binance CEO, Changpeng Zhao, widely known as CZ, may face imprisonment in 2024 after pleading guilty to US criminal charges in November.
However, the year 2023 brought a “silver lining” for the former Chief Executive Officer of Binance Holdings, as his estimated net worth allegedly skyrocketed by nearly $25 billion.
CZ’s Net Worth Skyrocket Despite Binance’s Legal Challenges
According to the report, given Bitcoin’s (BTC) impressive rise through 2023, Zhao is at the top of a list of crypto entrepreneurs who have seen a significant increase in their net worth.
Despite the $4.3 billion in fines that Binance agreed to pay to US authorities, Zhao’s wealth growth of over $25 billion in 2023 exceeds the penalties imposed on the exchange.
Currently estimated at more than $37 billion, CZ’s fortune primarily stems from his controlling stake in Binance, the world’s largest cryptocurrency exchange, which he founded.
In November, both Zhao and Binance pleaded guilty to anti-money laundering and US sanctions violations, reaching a comprehensive settlement that allows the exchange to continue operating. As part of the deal, Zhao agreed to pay a personal fine of $50 million and step down as CEO, although he retains his ownership stake in the exchange.
While facing the possibility of up to 10 years in prison, Zhao’s plea deal could limit his sentence to a maximum of 18 months, potentially sparing him from more severe penalties imposed on other prominent individuals involved in cryptocurrency-related crimes.
Despite the impressive wealth growth in 2023, Zhao’s net worth remains significantly lower than its peak of nearly $97 billion at the beginning of 2022, and it has also decreased from its year-to-date high of $50.4 billion in July, according to the Bloomberg Billionaires Index.
Crypto Industry Titans Reap Billions
Zhao is not the sole billionaire to benefit from the crypto rebound in 2023. The market’s positive sentiment, combined with the resolution of the Binance settlement and the potential approval of Bitcoin spot exchange-traded funds (ETFs) by the US Secuties and Exchange Commission (SEC), has contributed to the wealth growth of other prominent figures in the crypto industry.
According to Bloomberg, Brian Armstrong, CEO of Coinbase Global Inc., has seen his wealth rise by $5.8 billion year-to-date to reach $7.2 billion. Coinbase’s shares have surged approximately 400% this year, and Armstrong owns an estimated 16% stake in the company.
Fred Ehrsam, co-founder of Coinbase, has also experienced substantial wealth growth, adding $1.8 billion in 2023, bringing his estimated wealth to approximately $2.5 billion.
The Winklevoss twins, co-founders of Gemini Trust crypto exchange and holders of a significant amount of Bitcoin, have witnessed their wealth balloon by $1.4 billion each, reaching $2.7 billion individually.
On the other hand, Sam Bankman-Fried, the imprisoned former CEO of FTX crypto exchange, who has been convicted of massive fraud, has an estimated net worth of $0, having reached a peak of $25.9 billion in March of the previous year, according to Bloomberg.
Featured image from Bloomberg, chart from TradingView.com