Changpeng Zhao (CZ), the founder of the world’s largest cryptocurrency exchange Binance, saw his net worth shrink by 80% from 2021 when he was briefly the richest man in Asia. The decline in his wealth is attributed to the bear market in the cryptocurrency industry and the challenges faced by Binance. According to the 2023 Hurun Rich List, CZ’s net worth is now estimated at around 7 billion USD, ranking him 97th among the richest individuals in China.
Born in 1977 in a teacher’s family in Lianyungang, Jiangsu Province, Zhao went to Canada with his father and studied computer science at McGill University. After graduating, he entered the fintech industry as a software developer. During his time at Bloomberg, Zhao gained diverse international work experience and became aware of the high fees and complexity associated with cross-border remittances, which sparked his interest in Bitcoin. In 2013, he joined Blockchain.info as the third member of the founding team. Despite facing opposition from his family, Zhao sold his house in Shanghai to invest in Bitcoin. In 2017, he founded Binance and launched Binance Coin (BNB) as a native cryptocurrency. Binance quickly grew to become a leading cryptocurrency exchange, with millions of users worldwide. In November 2021, Forbes estimated Zhao’s net worth at 90 billion USD, making him the undisputed richest man in China.
However, Binance and Zhao have faced regulatory challenges in the United States. The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and Zhao in March 2023, accusing them of offering cryptocurrency derivatives to US customers without proper registration. Subsequently, the US Securities and Exchange Commission (SEC) filed 13 charges against Binance and Zhao, including operating an unregistered exchange and selling securities without registration. These legal battles have had a significant impact on Binance’s operations and its reputation. The decline in Binance’s market dominance is evident, with its daily trading volume now only twice that of the second-largest exchange. Additionally, Binance’s assets have shrunk by nearly 90%, from over 70 billion USD to 7.357 billion USD.
Despite the challenges, Zhao remains determined to adapt and continue the growth of Binance. He understands the need for continuous innovation and adaptation to navigate the complex and ever-changing market environment. While the future of Binance may be uncertain, Zhao and his team are actively seeking new market opportunities and remain confident in the industry’s future.