Fortune

Billion

Spot

Sam Bankman-Fried, currently facing a <a href="https://www.unlock-bc.com/110681/sam-bankman-frieds-high-stakes-trial-approaches-the-finish-line-what-is-new/" class="ek-link" rel="noopener noreferrer nofollow">fraud trial</a> in New York, is not the lone crypto entrepreneur encountering significant challenges. The Bloomberg Billionaires Index drastically reduced its estimated earnings for the crypto platform Binance by 38% following a decline in the firm’s trading volumes this year. This resulted in a staggering $11.9 billion deduction from the net worth of Binance’s founder, Changpeng Zhao, also known as CZ, ultimately dropping his fortune to $17.2 billion, as reported by Bloomberg.
CZ, aged 46, played a role in the series of events that led to Bankman-Fried’s appearance in federal court. In November, the Binance founder publicly declared the liquidation of a token associated with FTX, triggered by a report revealing that <a href="https://www.unlock-bc.com/110937/massive-8-6-million-asset-transfer-ftx-and-alameda-funds-relocated-to-binance-reports-nansen/" class="ek-link" rel="noopener noreferrer nofollow">Bankman-Fried’s hedge fund Alameda Research </a>possessed a substantial stake in it. Consequently, some FTX clients hastily withdrew their funds, overwhelming the exchange’s capacity to handle the sudden surge in withdrawals, leading to its declaration of bankruptcy less than a week later.
This sequence of events resulted in Bankman-Fried’s wealth plummeting to zero, after hitting a peak of $26 billion in March the previous year. The Bloomberg Billionaires Index computes Binance’s revenue using data from Coingecko and Coinpaprika, which track spot and derivatives trading.
Despite Binance briefly gaining a larger market share earlier in the year, thanks to a zero-fee promotion for popular trading pairs, its market share subsequently declined to 51% by the end of the third quarter, as reported by research firm CCData, following the conclusion of the promotional offer.
Representatives for Binance did not provide a response when requested for comment. The crypto exchange has found itself increasingly alienated from the traditional financial system in recent months. Regulatory authorities, including the Securities and Exchange Commission and the Commodity Futures Trading Commission, have taken legal action against Binance, alleging various regulatory violations.
Binance has contested these allegations and is currently engaged in legal battles to refute them. In June, Bloomberg’s wealth index nullified the valuation of Binance’s US exchange, causing a significant reduction in its trading volumes, following the exchange’s decision to cease transactions in dollars.
The repercussions have not been limited to Binance alone, as other investments become more appealing due to regulatory uncertainty and rising interest rates. Spot trading volume at Coinbase Global Inc. decreased by 52% in the third quarter compared to the previous year, according to data from CCData.
The post <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com/111093/binance-founders-fortune-plunges-11-9-billion-amid-regulatory-scrutiny/">Binance Founder’s Fortune Plunges $11.9 Billion Amid Regulatory Scrutiny</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Binance Founder’s Fortune Plunges $11.9 Billion Amid Regulatory Scrutiny

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