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Binance founder and former CEO Changpeng Zhao saw his net worth grow by a whopping $25 billion in 2023 despite market challenges and Binance’s regulatory troubles.
This year came with its unique challenges and market volatility. However, amid the issues, the market leveraged an opportunity to recover from the losses of the previous year triggered by the Terra and FTX implosions.
The recovery campaign saw Zhao’s net worth, majorly denominated in cryptocurrencies, surge by astronomical margins, according to a recent Bloomberg report CZ’s net-worth ballooned this year over $20 billion. The report, citing the Bloomberg Billionaires Index, also noted that Coinbase CEO Brian Armstrong saw his wealth growth this year.
In addition, Gemini co-founders, Cameron and Tyler Winklevoss were among the crypto billionaires who witnessed an increase in their portfolio value. However, Bloomberg suggests Zhao’s wealth growth outpaced the increase recorded by other crypto entrepreneurs.
Interestingly, this common increase prevailed despite several regulatory concerns in the United States. The Winklevoss twins faced issues with their Gemini Earn program after Genesis’ solvency issues. The U.S. SEC further slapped a lawsuit against Gemini and Genesis.
Binance’s woes took the major spotlight, with the exchange facing lawsuits from the CFTC and the SEC, as well as regulatory issues in other countries. Binance eventually agreed to a $4.3 billion fine to settle the CFTC’s case after admitting to charges involving anti-money laundering violations.
As part of the settlement, Zhao will face trial in a U.S. court on Feb. 23, with a possible sentence of up to 18 years, which could be reduced to 18 months if the billionaire opts for a plea deal, reports indicate.
The exchange also pulled out of Russia and Canada this year due to regulatory issues. The growing troubles resulted in Binance losing most of its market share as investors withdrew their assets to hedge against any potential collapse.
Nonetheless, these issues did little to hamper Zhao’s wealth growth, which comes from his stake in Binance and holdings in cryptocurrencies such as Bitcoin (BTC) and Binance Coin (BNB).
The recent increase in Zhao’s wealth resulted in a current net worth of $37 billion, Bloomberg confirmed. While this is an impressive figure, it is still 61% down from the billionaire’s peak net worth of approximately $97 billion in early 2022.