Changpen ‘CZ’ Zhao, the former CEO of Binance, has recently been named the twenty-fourth richest person in the world by Forbes. This prestigious ranking is a result of his 90% equity stake in Binance and joint ownership of 71% of the circulating BNB coins, which has amassed a staggering net worth of $61 billion.
CZ’s personal ownership of 64% of the BNB coins in circulation amounts to a total of 94 million coins out of the 200 million total supply. The current price of BNB has more than doubled during this year’s bull cycle, soaring from $230 to over $600, reaching an all-time high of $717 earlier this month.
BNB, the native asset of the Binance Smart Chain, powers a vast dApp ecosystem and is used to pay transaction fees on the network. CZ’s wealth is primarily derived from his substantial holdings of BNB coins and his majority stake in one of the world’s largest cryptocurrency exchanges, which sees daily trading volumes in the tens of billions of dollars.
Despite his immense success, CZ has faced legal troubles this year. In May, he began serving a four-month prison sentence for failing to implement robust anti-money laundering measures at Binance. Prosecutors found that Binance had facilitated over 1.1 million transactions between the US and Iran, a nation sanctioned by the Office of Foreign Assets Control (OFAC), involving transfers exceeding $900 million.
As part of his punishment, CZ was fined $50 million and compelled to step down as CEO of Binance. The exchange itself was fined a staggering $4.3 billion for its role in enabling transactions between Americans and individuals from sanctioned countries, as well as allowing funds from illicit sources to flow through its platform.
Despite these legal setbacks, CZ’s tremendous wealth and influence in the cryptocurrency industry remain undeniable. His rise to become one of the world’s wealthiest individuals serves as a testament to the vast potential and risks inherent in the ever-evolving world of digital assets and blockchain technology.