In a surprising turn of events, key figures in the cryptocurrency industry are witnessing substantial increases in their fortunes in 2023, despite legal hurdles and market volatility.
Changpeng Zhao, despite recently pleading guilty to U.S. criminal charges, has seen his wealth skyrocket by nearly $25 billion this year alone. Currently estimated at over $37 billion, Zhao’s fortune places him as the 35th richest person globally. This surge is attributed to his controlling stake in Binance, although it remains notably below its peak of nearly $97 billion in early 2022 and has dipped from its year-to-date high of $50.4 billion five months ago.
Zhao’s wealth surge aligns with the broader resurgence in the cryptocurrency market, with Bitcoin rebounding by over 160% since the market collapse in 2022. Notably, Binance, under Zhao’s leadership, pleaded guilty to anti-money laundering and sanctions violations, agreeing to a settlement that includes a $4.3 billion fine, with Zhao personally liable for a $50 million fine. Despite these legal challenges, Zhao maintains ownership in Binance and faces a potential 18-month prison sentence pending sentencing on February 23.
Brian Armstrong, CEO of Coinbase Global, has experienced a substantial increase in wealth, rising by $5.8 billion to reach $7.2 billion as Coinbase’s shares surged by almost 400% in 2023.
Gemini Trust’s co-founders, Tyler and Cameron Winklevoss, added $1.4 billion each to their wealth, bringing it to $2.7 billion. Gemini faces legal battles with Genesis and the Digital Currency Group, coupled with a lawsuit from the New York Attorney General.
Barry Silbert, founder of Digital Currency Group, witnessed a wealth growth of $1.5 billion, reaching an estimated $2 billion. DCG has been undergoing restructuring following the bankruptcy filing of its subsidiary, Genesis.
In stark contrast, Sam Bankman-Fried, the former CEO of FTX convicted of massive fraud, now holds an estimated net worth of $0, a significant drop from his peak wealth of $25.9 billion. This underscores the challenges faced by industry leaders amid legal troubles and market fluctuations.
