Cryptocurrency exchange Binance’s founder, Changpeng Zhao, known as CZ to his followers, is currently serving a four-month sentence in a minimum-security prison in Santa Barbara. Despite his incarceration, Forbes reports that Zhao’s net worth has skyrocketed to an estimated $61 billion, making him the 24th richest person in the world. This increase is attributed to his 90% equity stake in Binance, valued at $33 billion, and his personal holdings of the exchange-issued token BNB, estimated to be 94 million tokens or 64% of the total supply.
BNB, which launched in 2017 as a fundraising tool for Binance, has experienced a surge in value in 2024, outperforming other top cryptocurrencies such as bitcoin and ether. Despite legal issues faced by Binance and allegations of selling BNB as an unregistered security, the token has hit an all-time high of $714 with a market capitalization of $110 billion. Zhao’s personal holdings of BNB have contributed significantly to his newfound wealth, with Forbes estimating that he owns nearly 94 million tokens, valued at around $56.6 billion, after applying a liquidity discount to his stake.
An investigation conducted by Forbes in collaboration with Gray Wolf Analytics revealed that Binance’s initial coin offering (ICO) was undersubscribed, leading Zhao to funnel unsold shares into wallets he controlled. The company’s official white paper did not disclose what would happen to any unsold tokens, but it is estimated that Binance now holds around 58 million BNB in these wallets. Additionally, Zhao and the founding team received 80 million tokens from a total supply of 200 million BNB when Binance was created in 2017, further contributing to his wealth.
Despite the lack of transparency surrounding Binance’s operations and the majority of BNB trading occurring on its own exchange, Zhao’s fortune continues to grow as the cryptocurrency market thrives. With BNB experiencing a 5% gain in the last month alone, Zhao’s holdings have increased by approximately $3 billion on paper. While his current prison sentence may restrict his ability to access and sell his assets, Zhao’s wealth and influence in the crypto world remain substantial. As he watches his billions grow from behind bars, the true extent of his net worth and the implications for Binance’s future remain to be seen.
