The Unbelievable Growth of CZ's Wealth: Behind the Prison Walls

Binance founder, known by his short name, CZ, began his prison sentence on June 2, 2024, after he had agreed to a plea deal

Binance founder Changpeng Zhao, also known as CZ, began serving a prison sentence on June 2, 2024, after agreeing to a plea deal to settle charges related to his company's alleged violations of the Bank Secrecy Act. He entered prison as the world's 24th richest person, according to Forbes.

After serving nearly three months behind bars at a low-security prison in Lompoc, California, CZ walked out a wealthier man than when he went in. According to Forbes, his wealth increased by at least $28 billion during his prison stint.

At the time of his entry into prison, CZ's wealth was roughly $33 billion, and by the time he left, it grew to an astounding level of $61 billion.

A news report says that Forbes considered CZ’s equity stakes in Binance-affiliated companies and his personal holdings in cryptos to calculate his net worth.

Notably, Zhao has huge personal holdings in cryptocurrencies, especially Bitcoin and Binance Coin.

Looking at the daily chart of Bitcoin, on June 2, the price of BTC was around $67,724. On September 27, it dropped to $65,809.

Analyzing the Binance Coin daily chart, on June 2, the Binance coin price was nearly $602.7. On September 27, it slightly increased to $607.7.

Based on the chart data, though the Binance Coin market contributed a slight rise of 0.82%, the Bitcoin market created a loss of 2% during the period.

However, experts are disputing reports of CZ's massive wealth gains during his incarceration.

As per Bloomberg, during his time in prison, CZ’s wealth dropped from $36.5 billion to $30.8 billion. This 18.8% decrease was observed using a methodology similar to the one used by Forbes.

A news report indicates that Bloomberg considered certain additional factors like the loss in the reputation of Binance as a brand.

Anyway, Binance is still the top cryptocurrency exchange, with a total monthly visit of 53 million. It has a 24-hour trading volume of $17,590,622,613. On June 2, the exchange trade volume was $10,064,043,376. By September 27, it reached $17,010,578,954. In the last three months, the volume mostly hovered between $18,810,836,736 and $6.420.997.018. On August 5, it hit a peak of $38,229,544,392.

In conclusion, neither we have a reason to believe that Binance as a brand suffered any damage in its brand value during CZ’s time in prison, nor do we have any data to assume that the daily operations of the company were affected during the period. The contradictory nature of Forbes’ and Bloomberg’s findings about CZ's wealth reflects the fact that it is not easy to access the wealth of those whose wealth are centered in cryptos and crypto-related companies – known for its volatility and unpredictability

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