Changpeng Zhao’s fortune rises by $25 billion in 2023

The presumed personal wealth of founder and former Binance chief Changpeng Zhao (CZ) rose to $37.2 billion amid a recovery in the crypto market, Bloomberg noted.

The figure is far from the all-time high of $96.6 billion, recorded in January 2022, and did not hold the June level just above $50 billion.

Since January, Zhao’s wealth has risen by almost $25 billion. He topped the list of crypto billionaires whose net worth increased over the year. According to the Bloomberg Billionaires Index, his wealth recovered significantly:

• Coinbase CEO Brian Armstrong — up $5.8 billion, to $7.2 billion;
• Co-founder Fred Ehrsam — up $1.8 billion, to $2.5 billion;
• DCG founder Barry Silbert — up $1.5 billion, to $2 billion;
• Gemini founders Tyler and Cameron Winklevoss — up $1.4 billion, to $2.7 billion.

“Investing in cryptocurrency is not for the faint-hearted — you must be prepared for dramatic ups and downs. There is a reason these investors are billionaires, and it is not luck. They do not succumb to dumping their assets on falling markets. They believe in the long-term opportunities offered by the industry,” commented Campbell Harvey, a finance professor at Duke University.

The annual increase in Zhao’s wealth more than quintupled the $4.3 billion, agreed to pay under the November deal with the U.S. Department of Justice.

The agreement provided for Zhao to step down as CEO and a personal fine of $50 million.

The entrepreneur pleaded guilty to violations of the Bank Secrecy Act according to agency charges. The court released him on bail of $175 million.

Zhao cannot leave the United States until the February 23 court date. He faces up to 10 years in prison.

Bloomberg’s analysts, in estimating CZ’s net worth, assumed he owned 90% of Binance and 86% of the U.S. subsidiary Binance.US. He also claimed investments in Bitcoin and BNB, though their amounts are unknown and were not included in the total. The confidence rating of the valuation is at its lowest level.

Analysts at Matrixport say that Binance will remain among the largest crypto exchanges over the next two to three years, thanks to the DOJ deal.