Changpeng Zhao (CZ) was, not too long ago, one of the richest players in the crypto industry in the world. But his personal fortune has melted due to the events which have significantly affected the results of Binance, the crypto company he runs.
CZ’s fortunes hit by Binance’s underperformance
The crypto industry is no stranger to dramatic fluctuations in wealth. The latest victim of this financial roller coaster is none other than Changpeng Zhao (CZ), the boss of Binance.
According to recent data, profits generated by the crypto company suddenly fell by 38%. A drop in profitability which resulted in a colossal loss of $11.9 billion for CZ. In this context, the fortune of the crypto tycoon has particularly declined to find itself currently around $17.2 billion.
But this is not the only cause of the collapse of Changpeng Zhao’s fortunes. Analysts believe that the situation was aggravated by CZ’s involvement in a series of events linked to the legal woes of Sam Bankman-Fried, the former CEO of FTX.
We cite in particular this famous inflammatory tweet from CZ, which caused a chain reaction among investors. A tweet in which the boss of Binance announced the liquidation of a crypto affiliated with FTX. This, following reports revealing that Sam Bankman-Fried’s hedge fund, Alameda Research, held a substantial position in the asset.
A tweet that ultimately cost CZ $11.9 billion?
As Caroline Ellison, the former CEO of Alameda Research, recently stated, this announcement sparked a frantic race among FTX clients to withdraw their holdings. This ended up overwhelming the exchange, which declared bankruptcy less than a week later.
This catastrophic turn of events caused Sam Bankman-Fried’s personal fortune to plummet. This falling to zero, after a peak of $26 billion reached in March 2021.
Analysts seem to consider that this famous tweet ended up having an impact on the fortune of the boss of Binance. Although it should still be noted that Changpeng Zhao contested any desire to harm FTX via this tweet. This, despite the rivalry that existed between the two men in terms of crypto.
It is also important to remember that basically Binance has been struggling with these financial difficulties for several months. The company finds itself increasingly distanced from the traditional financial system. A consequence of legal proceedings launched against the company by American financial regulators, namely the SEC and the CFTC.
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