The very popular founder of Binance, an emblematic figure of crypto, recently left prison, finishing his sentence two days before the official release.
Changpeng Zhao’s income in prison is debated
According to Bloomberg methodology, Binance CEO Changpeng Zhao saw his net worth decline significantly during his incarceration. As of June 2, his wealth was estimated at $36.5 billion. Now, it would have fallen to around 30.8 billion on September 27.
Bloomberg took a conservative approach to calculating this, assessing what CZ owns in Bitcoin (BTC), Binance Coin (BNB), and shares of Binance.us. Additionally, the value of its shares in Binance.com was reduced by 50%, based on the average EV/sales multiple of peers like Coinbase, Galaxy Digital, and Riot Platforms.
However, Forbes disagrees with Bloomberg’s approach. While Bloomberg estimated that CZ’s fortune had declined, Forbes suggests that he could have made billions while incarcerated. Now, the platform estimates that net worth has increased to $61 billion as of September 27. This means that CZ made money in prison. He even reportedly had a daily income of around $25 million during this four-month period.
Learn more: Who is Changpeng Zhao? Find out everything you need to know about the former CEO of Binance.
A method that raises questions
Forbes has not fully disclosed 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 stark contrast suggests that Forbes is including CZ’s crypto holdings and applying a less conservative discount to its shares in Binance. Forbes’ estimate implies that CZ would have earned at least $3 billion while incarcerated.
Forbes’ assessment focuses primarily on derived wealth and not just Binance. Thus, shares or investment in companies affiliated with Binance were considered. If Forbes’ calculation is correct, it suggests that CZ made more money during his time in prison than many executives did in their lifetime.
As BeInCrypto reported, authorities released CZ from prison on Friday, September 27, two days before the official date. In total, he served 117 days at Lompoc II, a minimum security prison near Santa Barbara.
It should be mentioned that these are estimates. This is because the companies affiliated with Binance where CZ holds shares are private. Likewise, the estimates made are not always accurate. Finally, CZ has no obligation to publicly declare its assets.
Learn more: Take advantage of the Binance platform registration bonuses.
All of these elements make the precise calculation of Changpeng Zhao’s net worth rather opaque and difficult. Bloomberg rated his confidence in the estimate at one in five. Or the lowest possible level.
Moral of the story: millions beget millions, it’s the same for billions.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, we encourage readers to verify the facts on their own and consult a professional before making any decision based on this content.
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