Binance CEO Changpeng Zhao serves prison time while his wealth surges
Changpeng Zhao, also known as CZ, was sent to Lompoc Federal Prison in Southern California in May 2024 to serve a four-month sentence following accusations of money laundering on his cryptocurrency exchange, Binance, according to a Kazinform News Agency correspondent.
CZ’s sentence resulted from a federal investigation that concluded Binance had failed to prevent widespread criminal activity on the world’s largest cryptocurrency exchange. He was serving his four-month term in a low-security correctional facility.
Despite his time in prison, CZ’s financial situation remained strong. In fact, his net worth is now around $57.8 billion, which is about five times more than it was last year before he admitted guilt.
To resolve the conflict with the government, his crypt currency exchange company agreed to pay a $4.3 billion fine, with CZ personally contributing an additional $150 million. Over the past six months, Binance has successfully maintained a 42% share of the global market. According to Forbes, CZ owns 90% of the company.
Large part of CZ’s personal wealth is tied up in Binance-issued tokens, known as BNB. These tokens are similar to airline loyalty points but are publicly traded on the exchange.
Since the start of the year, BNB has risen in value by as much as 70%. A recent joint investigation by Forbes and Gray Wolf Analytics found that CZ owns approximately 94 million of these tokens.
CZ was released from a United States federal prison on September 27.
