As regulatory scrutiny intensifies in the cryptocurrency world, Binance founder Changpeng Zhao faces a significant loss of fortune.
Binance Founder CZ Loses $12 Billion in Crypto Trading Slump
The Bloomberg Billionaires Index cut Binance's earnings forecast by 38% due to a decline in trading volumes this year, resulting in a staggering $11.9 billion reduction in CZ's net worth, which currently stands at $17.2 billion.
This decline in wealth follows a series of legal challenges for Binance. The Securities and Exchange Commission (SEC) filed a lawsuit against the exchange in June.
Earlier this year, the Commodity Futures Trading Commission (CFTC) took legal action against Binance, accusing it of circumventing regulations banning US users from accessing its services.
Regulators allege inadequate money laundering controls, inflated transaction volumes and mismanagement of customer assets. Binance is vigorously contesting these allegations in court.
In June, Bloomberg's wealth index dropped the value of Binance's US exchange to zero after it announced its decision to halt dollar-denominated trading, causing a significant drop in trading volumes.
In a financing round held in March 2022, Binance.US was valued at $4.7 billion.
*This is not investment advice.
