The Bloomberg Billionaires Index revised its estimate for cryptocurrency exchange Binance’s revenue, lowering it by 38% as data showed a decline in trading volumes this year.
The review had a major impact on the fortune of Binance founder Changpeng Zhao, widely known as CZ, whose wealth fell by $11.9 billion, leaving his net worth at $17.2 billion.
The decline in Binance’s fortunes came as trading volumes on the exchange declined. Czechoslovakia’s involvement in recent events has complicated matters. In November, he announced the liquidation of the token associated with FTX.
The announcement came after reports emerged that Alameda Research, a hedge fund led by Sam Bankman-Fried, also holds a significant position in it. This news prompted FTX clients to withdraw their funds, overwhelming the exchange, which declared bankruptcy less than a week later.
As a result, Sam Bankman-Fried’s personal fortune, which had peaked at $26 billion in March of the previous year, fell to zero.
The Bloomberg Billionaires Index calculates Binance’s revenue using spot trading data and derivatives from cryptocurrency tracking services Coingecko and Coinpaprika. Binance gained market share earlier this year.
However, Binance’s dominance of on-exchange cryptocurrency trades declined from 62% in the first quarter to 51% by the end of the third quarter, according to research firm CCData. This decline came after the conclusion of a no-fee promotion for popular trading pairs.
In June, the Securities and Exchange Commission (SEC) initiated legal proceedings against the exchange, alleging inadequate controls over money laundering, inflated trading volumes, and mishandling of client assets. The Commodity Futures Trading Commission (CFTC) had previously gone after Binance for failing to comply with rules allowing US users to access the platform.
The Bloomberg Wealth Index reduced the value of US exchange Binance to zero in June when the exchange announced it would halt dollar transactions, causing a significant decline in trading volumes.
Earlier in the year, Binance.US was valued at $4.7 billion in a funding round conducted in March 2022. Notably, CZ’s net worth reached a peak of $96 billion in January of the same year.
Binance Founder Changpeng Zhao Loses $12 Billion Due to Cryptocurrency Trading Decline https://t.co/O5ebizE73U
– Bloomberg (@business) October 26, 2023
The challenges faced by Binance are not unique, as regulatory uncertainty and rising interest rates have made other investment options more attractive. Trading volumes at Coinbase Global Inc. declined. by 52% in the third quarter compared to a year earlier, according to data from CCData.
Binance.US stops direct withdrawals in USD
Binance.US has stopped direct withdrawals in USD due to regulatory actions taken by the Securities and Exchange Commission, Finance Magnates previously reported. Users must now convert USD into stablecoins or digital assets for withdrawals, with FDIC insurance not applying. The policy was introduced in response to ongoing legal battles involving Binance.US, parent company Binance, and founder Changpeng Zhao against the Securities and Exchange Commission. In June, Binance.US suspended US dollar deposits due to legal action by the Securities and Exchange Commission and pressure on its banking partners, who were reluctant to engage with the cryptocurrency industry. This suspension came as a means to protect the platform and its users.
The Bloomberg Billionaires Index revised its estimate for cryptocurrency exchange Binance’s revenue, lowering it by 38% as data showed a decline in trading volumes this year.
The review had a major impact on the fortune of Binance founder Changpeng Zhao, widely known as CZ, whose wealth fell by $11.9 billion, leaving his net worth at $17.2 billion.
The decline in Binance’s fortunes came as trading volumes on the exchange declined. Czechoslovakia’s involvement in recent events has complicated matters. In November, he announced the liquidation of the token associated with FTX.
The announcement came after reports emerged that Alameda Research, a hedge fund led by Sam Bankman-Fried, also holds a significant position in it. This news prompted FTX clients to withdraw their funds, overwhelming the exchange, which declared bankruptcy less than a week later.
As a result, Sam Bankman-Fried’s personal fortune, which had peaked at $26 billion in March of the previous year, fell to zero.
The Bloomberg Billionaires Index calculates Binance’s revenue using spot trading data and derivatives from cryptocurrency tracking services Coingecko and Coinpaprika. Binance gained market share earlier this year.
However, Binance’s dominance of on-exchange cryptocurrency trades declined from 62% in the first quarter to 51% by the end of the third quarter, according to research firm CCData. This decline came after the conclusion of a no-fee promotion for popular trading pairs.
In June, the Securities and Exchange Commission (SEC) initiated legal proceedings against the exchange, alleging inadequate controls over money laundering, inflated trading volumes, and mishandling of client assets. The Commodity Futures Trading Commission (CFTC) had previously gone after Binance for failing to comply with rules allowing US users to access the platform.
The Bloomberg Wealth Index reduced the value of US exchange Binance to zero in June when the exchange announced it would halt dollar transactions, causing a significant decline in trading volumes.
Earlier in the year, Binance.US was valued at $4.7 billion in a funding round conducted in March 2022. Notably, CZ’s net worth reached a peak of $96 billion in January of the same year.
Binance Founder Changpeng Zhao Loses $12 Billion Due to Cryptocurrency Trading Decline https://t.co/O5ebizE73U
– Bloomberg (@business) October 26, 2023
The challenges faced by Binance are not unique, as regulatory uncertainty and rising interest rates have made other investment options more attractive. Trading volumes at Coinbase Global Inc. declined. by 52% in the third quarter compared to a year earlier, according to data from CCData.
Binance.US stops direct withdrawals in USD
Binance.US has stopped direct withdrawals in USD due to regulatory actions taken by the Securities and Exchange Commission, Finance Magnates previously reported. Users must now convert USD into stablecoins or digital assets for withdrawals, with FDIC insurance not applying. The policy was introduced in response to ongoing legal battles involving Binance.US, parent company Binance, and founder Changpeng Zhao against the Securities and Exchange Commission. In June, Binance.US suspended US dollar deposits due to legal action by the Securities and Exchange Commission and pressure on its banking partners, who were reluctant to engage with the cryptocurrency industry. This suspension came as a means to protect the platform and its users.