The leading crypto exchange Binance has faced strong headwinds recently. In January 2022, Binance CEO Changpeng “CZ” Zhao’s net worth peaked at 96.9 billion dollars. However, by the end of the year, CZ’s net worth had declined by 82%, falling to 17.3 billion dollars.
FTX’s founder, Sam Bankman-Fried (SBF), once boasted a wealth of 26 billion dollars as of last March. Now, his fortune stands at zero.
Decline in Spot Trades
Changes in revenue projections stemming from the decline in exchange volumes pushed Zhao to the 95th spot on the list of the richest individuals. Binance’s share in the spot trading market was over 55% in January, but it decreased to 34.3% by September. The trading volumes of Binance’s American branch, Binance.US, continued their downward trend.
In addition to these financial challenges, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have filed lawsuits against Binance and Zhao. The SEC alleges that Binance and Binance.US engaged in illegal activities and sold unregistered securities. Meanwhile, the CFTC claims that Binance did not register as required. However, both Zhao and Binance refute these claims, demanding the dismissal of the cases.
Positive Financial Results from Justin Sun Group
On the brighter side of the crypto market, there’s some encouraging news. Justin Sun Group, with its assets including TRON, HTX, Poloniex, TUSD, and others, reported impressive financial results for the third quarter of 2023.
The company announced a revenue of 202 million dollars and expenses amounting to 104 million dollars during this period. This indicates a quarterly profit reaching 98 million dollars. Moreover, it’s observed that the Justin Sun Group maintained its revenue growth rate with a surge of 14%.