Prominent figures in the cryptocurrency industry are feeling the pinch as the fortunes of Binance founder Changpeng Zhao have taken a significant hit.
According to the Bloomberg Billionaires Index, Zhao’s estimated net worth has plunged by $11.9 billion, marking an 82% decrease from its peak. His current wealth now stands at $17.2 billion.
This dramatic reduction in Zhao’s wealth can be attributed to a substantial 38% decline in Binance’s estimated revenues, a major cryptocurrency exchange.
Data indicates a year-long decline in trading volumes at Binance, contributing to this significant financial setback.
The Bloomberg Billionaires Index determines Binance’s revenue by analyzing spot and derivatives trading data from cryptocurrency tracking services Coingecko and Coinpaprika.
Notably, the 46-year-old Zhao played a pivotal role in events involving another prominent crypto figure, Sam Bankman-Fried.
In November, Zhao announced the liquidation of a token linked to FTX after reports emerged that Bankman-Fried’s hedge fund, Alameda Research, held a significant position in it.
This led to a rush among FTX customers to withdraw their funds, overwhelming the exchange and ultimately leading to its bankruptcy less than a week later.
For Bankman-Fried, who had reached a peak net worth of $26 billion in March the previous year, his fortune was entirely wiped out.