Binance founder and former CEO Changpeng Zhao (CZ) was likely still growing his wealth despite his four-month confinement in California’s Lompoc II detention center.
The popular crypto executive exited prison recently, concluding his sentence two days ahead of the official release.
Changpeng Zhao’s Daily Earnings While In Prison Debated
According to Bloomberg’s methodology, Binance’s Changpeng Zhao saw his net worth decline significantly while in prison. As of June 2, his wealth was estimated at $36.5 billion, which fell to around $30.8 billion by September 27.
Bloomberg took a conservative approach in calculating this, valuing CZ’s holdings in Bitcoin (BTC), Binance Coin (BNB), and Binance.us at $0. Additionally, the value of his Binance.com equity was discounted by 50%, based on the average EV-to-sales multiple of peers like Coinbase, Galaxy Digital, and Riot Platforms.
However, Forbes disagrees with Bloomberg’s approach. While Bloomberg estimated CZ’s wealth to have dropped, Forbes suggests he may have earned billions while in prison, estimating his net worth at $61 billion on that same date. It means CZ had a daily income of about $25 million during the four-month period.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
Forbes did not fully disclose its methodology. However, its data shows that CZ’s net worth was $33 billion on May 7 and $57.8 billion on July 12. This sharp contrast suggests that Forbes includes CZ’s crypto holdings and applies a less conservative discount on his equity in Binance. Forbes’ estimate implies that CZ may have gained at least $3 billion during his time in prison.
Forbes’ valuation primarily focuses on wealth derived from equity in privately held Binance-affiliated companies. If accurate, this suggests CZ made more money during his prison term than many executives earn in a lifetime.
As BeInCrypto reported, authorities released CZ from prison on Friday, September 27, two days ahead of official date. He served 117 days at Lompoc II, a minimum-security prison near Santa Barbara.
It is worth mentioning that these are estimates as the Binance-affiliated firms where CZ owns equity are private. Similarly, CZ has no obligation to report his assets publicly.
Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
These facts make it rather opaque and difficult to calculate Changpeng Zhao’s net worth accurately. Bloomberg rated its confidence in the estimation at one out of five, putting it at the lowest level possible.
The post Did Changpeng Zhao Make or Lose Billions in Prison? Forbes and Bloomberg Weigh In appeared first on BeInCrypto.
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Lockridge Okoth
https://beincrypto.com/changpeng-zhao-make-or-lose-billions-in-prison/
2024-10-02 17:30:00
