Binance founder and former CEO Changpeng Zhao may have earned more than $25 million a day during his four-month prison sentence, according to a new investigation.
While most executives can only dream of such returns, Zhao, commonly known as CZ, has seen his personal fortune soar despite serving time in a California prison.
Changpeng Zhao Allegedly Earned $25 Million Daily While In Prison
According to Forbes’ estimates, CZ’s net worth has increased significantly during his time in prison. The publication suggests that he may have earned billions of dollars during his 117-day prison sentence from June 2 to September 27, 2024. This means that CZ may have earned $25 million per day, a staggering amount for someone behind bars.
However, not all estimates are consistent with Forbes’ optimistic assessment. Bloomberg, which uses a more conservative methodology, estimates that CZ’s wealth has actually decreased while he was in prison. Bloomberg rated the calculation as having minimal confidence, citing the complexity of valuing private companies and the volatile nature of cryptocurrency markets. According to its data, the wealth held by Changpeng Zhao fell from $36.5 billion in June to $30.8 billion by the end of September 2024.
Forbes, by contrast, paints a much rosier picture. Forbes pegs CZ’s net worth at $61 billion on Sept. 27, 2024, nearly double Bloomberg’s estimate. The discrepancy is because Forbes includes CZ’s crypto assets and discounts his equity in Binance-affiliated companies, including Binance.us and Binance.com.
Changpeng Zhao was sentenced to prison after pleading guilty to charges of willful violation of the Bank Secrecy Act, which allows money laundering on Binance.com, in November 2023. As part of the plea deal, CZ agreed to resign as Binance’s CEO, pay a $50 million fine, and cease any public discussion of the Statement of Facts in the case.
After legal formalities, Changpeng Zhao was admitted to Lompoc II, a minimum-security prison near Santa Barbara, on June 2, 2024. Despite his incarceration, his wealth has increased due to the continuous growth of his Binance-related assets and other assets.
It is difficult to accurately assess the wealth of Changpeng Zhao because the majority of his wealth is tied up in private equity in companies affiliated with Binance, and he is not required to disclose his assets. While both Forbes and Bloomberg have attempted to estimate his net worth, the actual figures remain speculative. Forbes estimates his net worth to be $33 billion in May 2024, rising to $57.8 billion in July, while Bloomberg estimates his worth has fallen during his time in prison.
*This is not investment advice.