- Binance CEO CZ has reportedly lost billions of dollars.
- This follows a declining trade volume at Binance.
- The development comes when Binance is entangled in multiple lawsuits with regulators.
The crypto market reprieve driven by hopes of a potential Bitcoin ETF approval seems insufficient to cool down the heat Binance Founder and CEO Changpeng “CZ” Zhao is facing.
Binance, the world’s largest crypto exchange by trading volume, is battling challenges from all angles, with the latest reports indicating that the exchange’s revenues have declined by 36%, wiping billions of dollars from CZ’s fortune.
Heat Coming from Crypto-Trading Slump
According to a Bloomberg report dated October 26, the Bloomberg Billionaires Index has slashed its estimate of revenues at Binance following a decline in spot and derivatives trading volume, as revealed by data from crypto-tracking firms CoinGecko and Coinpaprika.
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Per the report, the exchange’s market share in Q3 has shrunk to 51% despite peaking at 62% when Binance introduced a zero-fee promotion for popular trading pairs in the year’s first quarter.
Trading slump patterns have also led to volume declines at the exchange’s U.S. affiliate. In June, when Binance.US suspended dollar deposits on the platform, Bloomberg’s wealth index cut the exchange’s value to zero following a dramatic decline in trade volumes.
Cumulatively, the long-lived crypto-trading slump at Binance and its affiliate is believed to have wiped out $11.9 billion from CZ’s fortune, bringing him to $17.2 billion.
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The development comes when Binance is entangled in legal disputes with multiple regulators in the U.S.
Binance’s Legal Woes
On June 5, the U.S. Securities and Exchange Commission (SEC) filed 13 charges against Binance entities and CZ, accusing the parties of controlling customer funds, “permitting them to commingle or divert the funds as they wish.”
Earlier, the CFTC had announced charges against Binance and its co-founder, accusing the parties of shirking rules that permitted U.S.-based customers to conduct securities transactions.
Binance finds itself in a quagmire thanks to these lawsuits that the exchange is still fighting in court, with declining trading volumes and increasing isolation from traditional finance.
Stay updated on CZ’s and Binance’s response to the CFTC lawsuit:
Binance, Changpeng Zhao Renew Bid to Toss CFTC Lawsuit
Read why Binance.US froze direct USD withdrawals:
Binance.US Freezes Direct USD Withdrawals in New User Terms
