Binance Founder Changpeng Zhao Triggered the FTX Crash With a Single Tweet; Here's His Net Worth

What is Changpeng Zhao's net worth?

The founder and CEO of the world's largest cryptocurrency exchange Binance, Chinese-Canadian entrepreneur Changpeng Zhao, widely known as CZ, has a net worth of $12 billion. His wealth had previously experienced significant fluctuations reflecting the volatile nature of crypto markets, reaching a peak of nearly $100 billion in early 2022 but dropping to around $10 billion by June 2022.

What are Changpeng Zhao's sources of income?

Changpeng Zhao's income is mainly generated from his cryptocurrency investments and his position as the CEO of Binance. The coder who was building high-frequency trading systems for Wall Street, had sold his apartment in Shanghai to make his first big crypto purchase. In 2017 he launched Binance, and went from zero to a billion within a year, becoming the epitome of the overnight crypto billionaire.

In his early career, Changpeng Zhao interned at the Tokyo Stock Exchange, developed software for trade orders, and worked at Bloomberg Tradebook, where he contributed to futures trading software. Before Binance, he was also involved in the development of Blockchain.info and served as the Chief Technology Officer of OKCoin. After launching Binance, Zhao moved his main office from China to Japan and later expanded to places like Europe. However, he faced trouble, including a cyberattack that led to a loss of $40 million in Bitcoin. There were also questions about whether Binance was following the rules in the United States, which led to investigations by the IRS and the Department of Justice.

Changpeng Zhao's earnings and fluctuations

Zhao, commonly known as CZ, has amassed a substantial fortune through his influential role in the cryptocurrency industry. At the peak of his success in January 2022, his net worth neared an astounding $100 billion, making him one of the world's wealthiest individuals. However, the subsequent months of 2022 witnessed a dramatic downturn, with $87 billion shaved from his net worth. This plummet marked a historic moment, as it temporarily held the record for the most significant wealth loss by an individual, eventually surpassed by Elon Musk.

Real estate and total assets

It's essential to note that nearly 100% of Zhao's liquid net worth is in the form of cryptocurrencies, which can be highly volatile. This highlights the inherent risks and rewards in the world of digital assets. In terms of real estate, In 2021, Changpeng Zhao's acquisition of a residence in Dubai signaled his endorsement of the cryptocurrency-friendly environment in the region. Previously expressing a preference for liquid assets, Zhao's property investment appears driven by strategic considerations rather than personal luxury.

Social media following

Personal life and legal issues

Born in China's Jiangsu province in 1977, he and his family relocated to Canada in the 1980s. Despite facing challenges, he settled in Vancouver at the age of 12 and worked various jobs to support his family, including a stint at McDonald's. He pursued a degree in computer science at McGill University in Montreal. Zhao has faced legal scrutiny and regulatory challenges during his career. Binance's rapid rise and global presence raised concerns in various jurisdictions, including allegations of facilitating money laundering and tax offenses. In 2021, the IRS and the Department of Justice officially investigated Binance.

Binance and FXT feud

Binance and FTX were once considered friendly competitors in the cryptocurrency exchange landscape, with Binance even being an early investor in FTX. However, as their rivalry intensified, Binance requested that FTX, led by Sam Bankman-Fried, repurchase its equity stake for $2 billion. Remarkably, the transaction was not settled with traditional currency or Bitcoin but with FTX's own token, FTT, worth $2 billion. In November 2022, a tweet from Zhao hinted at potential financial concerns with FTX, causing Binance to plan a massive sell-off of hundreds of millions of dollars in FTT. This move triggered a series of catastrophic events for FTX within a remarkably short span of 12 hours. SBF, once valued at over $12 billion, was placed under house arrest, facing serious allegations of fraud and money laundering. FTX faced bankruptcy, leading to SBF's eventual arrest and extradition to the US from his previous residence in the Bahamas.

FAQs

What is Changpeng Zhao's net worth?

Changpeng Zhao has an estimated net worth of $12 billion.

Is Changpeng Zhao the richest person in Canada?

As of early 2022, estimates indicated that CZ was the richest person in Canada.

What is CZ's role at Binance?

CZ serves as the CEO of Binance, the world's largest cryptocurrency exchange.