Bloomberg: Zha Changpeng’s Assets Increase by $23.6 Billion Annually, Surpassing US Department of Justice’s Fines Fivefold.

Bloomberg cites its Billionaires Index, pointing out that the rebound in the cryptocurrency market this year has led to a surge in the net worth of various cryptocurrency entrepreneurs.

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Did Zhao Changpeng return to the rich list? Are they still winners after the Binance storm?
Not just CZ, the rebound in the cryptocurrency market has created more billionaires
How does Bloomberg calculate the net worth of billionaires?
Did Zhao Changpeng return to the rich list? Are they still winners after the Binance storm?
In November this year, CZ and Binance reached a comprehensive settlement agreement with the United States for violating US sanctions and anti-money laundering laws. They admitted to the relevant charges and agreed to pay fines to allow Binance to continue operating.

CZ himself agreed to pay a $50 million fine and step down as CEO in the agreement, but he still retains his stake in Binance.

(
Binance founder Zhao Changpeng agrees to resign, pleads guilty, and Binance is fined $4.3 billion
)
Bloomberg cited its Billionaires Index, stating that CZ’s assets have increased by $23.6 billion this year, more than five times the $4.3 billion fine imposed on Binance. He currently has a net worth of over $37 billion, mainly from his stake in Binance. Despite a decrease in Binance’s market share, the rebound in the cryptocurrency market has significantly increased trading volume.

However, compared to the peak of nearly $97 billion in early 2022 and the intra-year high of $50.4 billion in July 2023, CZ’s assets still have a certain gap.

CZ has not commented on this, and his holdings of BTC and BNB are not included in the valuation of the Billionaires Index. He ranks 37th on the list and ranks 15th in annual growth.

Not just CZ, the rebound in the cryptocurrency market has created more billionaires
In addition to CZ, Bloomberg pointed out that the assets of several cryptocurrency entrepreneurs have also significantly increased:

Barry Silbert, founder of DCG: His assets increased by $1.5 billion annually to reach $2 billion.
Brian Armstrong, CEO of Coinbase: His assets increased by $5.8 billion annually, with total assets of about $7.2 billion. He holds approximately 16% of Coinbase’s shares.
Fred Ehrsam, co-founder of Coinbase: He holds approximately 5% of Coinbase’s shares, with an annual increase in assets of about $1.8 billion, reaching $2.5 billion.
Winklevoss brothers: Tyler Winklevoss and Cameron Winklevoss’ assets increased by approximately $1.4 billion through the appreciation of their shares in the Gemini exchange.

In fact, DCG has been in the process of selling assets and closing businesses, and Barry Silbert resigned as a director of Grayscale on the 26th.

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Barry Silbert, founder of DCG, steps down as Grayscale director, Mark Shifke takes over
)
How does Bloomberg calculate the net worth of billionaires?
According to the algorithm of Bloomberg’s Billionaires Index, it represents the equities held by billionaires worldwide and estimates their value based on the latest closing prices at the end of the New York trading day, converted into US dollars at the current exchange rate.

However, since Binance is an unlisted company, Bloomberg estimates the trading volume and fees of Binance spot and derivative transactions based on data from Coingecko, Coinpaprika.com, and CCData to calculate Binance’s revenue.

Then, it is compared with the equity value of companies such as Coinbase, asset management institution Galaxy Digital, and mining company Riot Platforms.

In addition, the value of equities is discounted by 50% due to factors such as corporate attributes, regulations, and related risks, and based on previous documents, CZ’s net asset value is estimated, including the $1 billion devaluation of Binance.US due to litigation. Bloomberg stated that CZ holds 86% of Binance’s shares in the United States.

All the cryptocurrencies held by CZ are not included due to unknown reasons.

Hazel Watts, a spokesperson for Binance, previously stated in 2022 that Bloomberg’s valuation of Binance is “inaccurate and far apart,” but did not provide more details and did not respond to Bloomberg’s request for comment.

Bloomberg also mentioned Sam Bankman-Fried (SBF), the founder of FTX, stating that his net worth has stabilized at $0 after reaching a peak of $25.9 billion in March last year.