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 study.
While most executives can only dream of such profits, 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 increased significantly during his time in prison. The publication suggests that he may have earned billions of dollars during his 117-day stay in jail from June 2 to September 27, 2024. This means CZ could have been making $25 million a day, a staggering figure for someone behind bars.
However, not all predictions are in line with Forbes’ optimistic assessment. Using a more conservative methodology, Bloomberg estimates that CZ’s wealth actually decreased while he was in prison. Bloomberg explains the complexity of valuing private companies and cryptocurrency He rated his confidence in the calculation at the lowest level, citing the volatile nature of the markets. According to its data, the wealth owned by Changpeng Zhao dropped from $36.5 billion in June to $30.8 billion at the end of September 2024.
By contrast, Forbes’ forecasts paint a much rosier picture. Forbes pegged CZ’s fortune at $61 billion on September 27, 2024, nearly twice Bloomberg’s estimate. This difference is due to Forbes’ inclusion of CZ’s crypto holdings and a smaller discount to its equity in Binance-affiliated companies, including Binance.us and Binance.com.
Changpeng Zhao was sentenced to prison in November 2023 after pleading guilty to willful violation of the Bank Secrecy Act, which allows money laundering on Binance.com. As part of the plea agreement, CZ agreed to resign as CEO of Binance, pay a $50 million fine, and cease any public discussion of the case’s Statement of Facts.
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 held by Changpeng Zhao because most of his wealth is tied to private equity in companies affiliated with Binance and he is not required to disclose his assets. Although both Forbes and Bloomberg have attempted to estimate his net worth, actual figures remain speculative. Forbes estimated his wealth at $33 billion in May 2024, rising to $57.8 billion in July, while Bloomberg estimates a decline in his worth during his time in prison.
*This is not investment advice.
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