Did Changpeng Zhao Make or Lose Billions in Prison? Forbes and Bloomberg Weigh In
The post Did Changpeng Zhao Make or Lose Billions in Prison? Forbes and Bloomberg Weigh In appeared on BitcoinEthereumNews.com.
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…
Filed under: News - @ October 2, 2024 7:23 pm