Binance Founder Loses 108 Trillion Won Amid Cryptocurrency Market Contraction

US Sanctions and High Interest Rates Shrink Cryptocurrency Market
Changpeng Zhao's Wealth at 23 Trillion Won... Down 82% from Peak

The assets of Changpeng Zhao (CZ), founder of Binance, the world's largest cryptocurrency exchange, have recently plummeted by nearly $80 billion (approximately 108 trillion KRW) from their peak due to sluggish cryptocurrency trading.

According to the Bloomberg Billionaires Index on the 28th, Binance's cryptocurrency trading volume is estimated to have decreased by 38% this year.

As a result, Zhao's net worth has fallen to $17.2 billion (approximately 23 trillion KRW), down 82% from the record high of $96 billion (approximately 129 trillion KRW) in January last year.

The sharp decline in Zhao's net worth, who became a billionaire through cryptocurrencies, is largely due to the contraction of various asset markets caused by high interest rates. Additionally, Binance is facing comprehensive pressure as U.S. financial authorities have imposed sanctions on cryptocurrencies.

Earlier, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance in June, alleging that it offered unregistered securities to U.S. investors. Recently, it was reported that Binance withdrew other cryptocurrency-related lawsuits previously filed to focus on the Binance case.

As a result, Binance accounted for 62% of the total cryptocurrency trading volume in the first quarter of this year, but its market share dropped to 51% in the third quarter. Regulatory uncertainty dealt a direct blow to its market dominance. According to the Bloomberg Billionaires Index, the valuation of Binance's U.S. subsidiary also fell from about $4.7 billion (approximately 6 trillion KRW) in March 2022 to 'zero' in June when the SEC filed the lawsuit.

Bloomberg News reported, "U.S. regulators have sued Binance on various charges," adding, "The cryptocurrency exchange founder feeling the heat of sanctions is not only Sam Bankman-Fried, who is currently on trial in New York for fraud."

Sam Bankman-Fried, founder of the cryptocurrency exchange FTX, is on trial in New York, charged with embezzling billions of dollars of customer funds. According to a former FTX executive, Bankman-Fried used customer funds at his discretion to purchase luxury real estate and sponsor athletes.

This content was produced with the assistance of AI translation services.