Binance co-founder Zhao set to keep on growing his $33 billion fortune even as he heads to prison for four months
Cryptocurrency exchange Binance founder and CEO Changpeng Zhao speaks at a Binance fifth anniversary event in Paris, France, July 8, 2022.
Staff | Reuters
Changpeng Zhao, the billionaire co-founder and former CEO of Binance, is expected to see his mammoth wealth remain intact and likely continue to climb even as he faces time behind bars after his sentencing in a Seattle court.
Zhao, who is commonly referred to as “CZ” in crypto circles, was sentenced to four months in prison on Tuesday, after pleading guilty to charges of enabling money laundering at his crypto exchange.
The sentence handed down to Zhao in Seattle federal court was significantly less than the three years that federal prosecutors had been seeking for him. The defense had asked for five months of probation. Sentencing guidelines called for a prison term of 12 to 18 months.
A Binance spokesperson said in a statement to CNBC the crypto exchange has made “considerable compliance enhancements,” including with regards to anti-money laundering detection and “hiring key compliance personnel.”
A lawyer for Zhao did not immediately respond to CNBC’s request for comment.
In November, Zhao struck a deal with the U.S. government to resolve a multiyear investigation into Binance. As part of Binance’s $4.3 billion settlement with the U.S. Department of Justice, Zhao stepped down as the company’s CEO, and the exchange agreed to form a board of directors with independent members, as well as compliance and audit committees.
Of the seven total directors recently named to the since-formed board of directors, three were designated as being “independent” — and five of them, including all of the board’s independent members, submitted letters to the judge in Zhao’s criminal case asking for leniency in sentencing.
Gabriel Abed, the board’s chairman and one of its independent members, told U.S. District Judge Richard Jones that Zhao was “distinguished by a stoic composure and genuine humility” and that “despite his significant achievements,” he maintained a lifestyle marked by simplicity including dressing in clothes bought on Amazon, driving a Toyota and wearing an Apple watch.
Despite Zhao now facing time in prison, industry experts and lawyers who spoke with CNBC say his tremendous personal wealth will remain unaffected and, if anything, is likely to rise.
Los Angeles corporate law attorney Tre Lovell tells CNBC that the government is only entitled to any restitution or fines imposed and not to Zhao’s assets or wealth as a whole. Former federal prosecutor Neama Rahmani agrees, adding that Zhao’s personal wealth won’t be affected by his sentence.
“Because Zhao and the government came to an agreement, the government didn’t get a judgment or restitution order against Zhao and do discovery into his assets,” said Rahmani. “He’ll have significant wealth when he is released from prison.”
Changpeng Zhao, former CEO of Binance, arrives at federal court in Seattle, Washington, April 30, 2024.
David Ryder | Bloomberg | Getty Images
CZ’s wealth is unaffected
Zhao took Binance, the cryptocurrency exchange he co-founded in 2017, from a relatively obscure company to one of the most formidable players in the booming digital currency space.
Despite the fact that Zhao is being put behind bars, his controlling stake in Binance means that he will continue being one of the wealthiest people in crypto today.
Notably, because Zhao pleaded guilty to only one count of violation of the U.S. Bank Secrecy Act (BSA), he is regarded as a first-time offender, and thus reached a settlement with federal authorities to step down as CEO and not relinquish his interest in the company or have assets frozen.
“Typically, personal assets that are not directly linked to the criminal activity might remain unaffected,” said Braden Perry, a former senior trial lawyer for the Commodity Futures Trading Commission. “His assets could also be managed on his behalf while he is incarcerated.”
That’s a different siutation from Sam Bankman-Fried, the controversial ex-CEO and founder of crypto exchange FTX. Bankman-Fried, who’s commonly referred to as “SBF,” saw his wealth reduced to zero after his crypto empire collapsed into bankruptcy in 2022.
“In relation to CZ’s personal wealth … he would still be able to retain his share in Binance, as well as maintain his crypto holdings which also contribute an unknown, yet material, amount to his overall wealth and net worth,” Joshua de Vos, research lead at CCData, told CNBC via email.
“Since there is no misappropriation or bankruptcy proceedings, it is highly unlikely that CZ would see his wealth reduced to zero as was the case with SBF,” de Vos said.
What’s more, Zhao has gotten off much easier in sentencing than former crypto rival Bankman-Fried. Bankman-Fried received a 25-year prison term for crimes connected to the operation of his crypto exchange.
Unlike Zhao and the charges brought against Binance, Bankman-Fried’s bankrupt exchange faced allegations of fraud and misuse of customers’ funds.
Crypto rally offers Zhao a boost
Experts say that Zhao’s net worth is likely to continue rising as buoyant crypto prices, which tend to support trading activity on Binance, boost his own personal fortune.
“CZ will now be one of the wealthiest people in prison,” said Yesha Yadav, law professor and associate dean at Vanderbilt University.
That’s even after a litany of legal troubles, including the Department of Justice’s case against it, and several other high-profile lawsuits — including one from the Securities and Exchange Commission which remains ongoing.
The SEC has accused Binance of making multiple unregistered offers and sales of crypto asset securities. It is not yet clear when that case will reach a conclusion.
Zhao had an estimated personal net worth of $33 billion on March 8, 2024, up from $10.5 billion the same time last year, according to Forbes’ World’s Billionaires list, which ranks the richest peopole using stock prices and exchange rates.
Bloomberg’s Billionaires Index, a separate measure of the world’s wealthiest, pegs Zhao’s net worth at an even higher sum, $42.9 billion.
CNBC was unable to independently verify Zhao’s overall net worth.
But Zhao is widely reported to have an estimated 90% stake in Binance, and his fortune is largely derived from his equity ownership in the company.
Binance is by far the world’s largest cryptocurrency exchange by trading volume, processing $18.1 trillion worth of trading volume in 2023, according to data from crypto market data firm CCData.
Around 80% — or $14.4 trillion — of that came from derivatives products like futures contracts, while the remaining $3.7 trillion came from spot trading. Derivatives trading is a key part of Binance’s business.
And even though Binance has seen its market share drop to 41.6% since Zhao stepped down as CEO in November 2023, the company remains the dominant player overall — leagues ahead of South Korean exchange Upbit, Dubai-headquartered Bybit, and U.S. giant Coinbase.
Zhao has said previously he has personal investments in bitcoin and Binance’s own BNB token, however he’s not disclosed the value of those holdings. Binance Coin, or BNB, is up 83% so far this year to $576.
Lucas Kiely, chief investment officer of digital wealth platform Yield App, said that Zhao’s “significant stake in the world’s largest cryptocurrency exchange by volume positions him to potentially benefit from the overall growth of the crypto market.”
The recent approval of a spot bitcoin exchange-traded fund in the U.S. has led to renewed interest in the crypto market, and helped trigger a wave of fresh institutional investment, according to Kiely — and that’s sure to be a boon to Binance.
“Such developments could contribute to the growth of Binance and, by extension, CZ’s wealth,” he told CNBC.
Zhao has been hit with a partial knock to his overall fortune — he was forced to pay a $50 million fine, in addition to the $4.3 billion in fines and forfeiture Binance was ordered to pay for violating the U.S. Bank Secrecy Act and sanctions on Iran. Yadav noted that it’s also possible Zhao makes some contribution to the billions Binance owes to the government.
Yadav tells CNBC that even though CZ’s vast wealth is not directly under threat by virtue of his conviction and the sentencing today, there may still be some indirect effects.
“Negative long-term impact on Binance will diminish the value of CZ’s investment in the crypto exchange,” said Yadav. “Conversely, however, CZ may even benefit if Binance begins a path to recovery following today’s sentencing, the plea deal and monitorship arrangement, and regains its market share over time as a result.”
Geely-backed performance EV brand Polestar has had some troubling times in recent months, but its future is looking a whole lot better after the company secured a $600 million loan facility to help it keep on keepin’ on.
Despite vehicle sales picking up in 2025 on the strengths of the Polestar EV brand’s Swedish sensibilities, cutting-edge Chinese EV tech, and Volvo-aided safety specs, the company’s financial picture has been anything but rosy, with the threat of having its stock delisted from the NASDAQ looming large at several points.
In a vote of broader confidence and better times ahead, Volvo’s parent company Geely Sweden Holdings AB is backing the brand with more than half a billion dollars of fresh funding to extend its operational runway:
Polestar, as borrower, entered into a credit agreement with a wholly owned subsidiary, as lender, of Geely Sweden Holdings AB in relation to a subordinated term loan facility of up to USD 600 million, of which the last USD 300 million would require lender consent based on Polestar’s future liquidity needs. The term loan facility is available to Polestar for general corporate purposes.
The new funds are just the most recent part of a big week for Polestar – one that saw the Polestar 4 recently begin deliveries to its first North American customers, and recent upgrades to the Polestar 3 have made that car a viable V2G/V2x offering in Europe, as well. With that in mind, it’s no wonder that Geely wants to see how this all plays out.
The company has four models in its current line-up on sale in 28 countries, along with additional planned models that include the Polestar 7 SUV (set to be introduced in 2028) and the Polestar 6 coupe/roadster.
Electrek’s Take
Product-wise, at least, it’s hard to argue that Polestar’s future appears to be anything but bright. The new Polestar 3 crossover is a viable competitor to the industry-leading Tesla Model Y, and the upcoming Polestar 4 and 5 models seem like winners, too. To drive that point home, Polestar is promoting up to $18,000 in incentives to lure in Tesla buyers.
You can find out more about Polestar’s killer EV deals on the full range of Polestar models, from the 2 to the 4, below, then let us know what you think of the three-pointed star’s latest discount dash in the comments section at the bottom of the page.
SOURCE: Polestar.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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Whether it’s to keep the lights on after a natural disaster or just to avoid peak energy rates, more people than ever are adding battery energy storage to their home solar systems — but li-ion batteries aren’t the only option. The new WATT Fuel Cell uses the natural gas connection your home already has to generate power when you need it.
Technically a solid oxide fuel cell, the WATT unit turns the natural gas in your home into electricity without combustion, relying instead on a chemical reaction between the natural gas and oxygen in the air to create an electric current in a way that’s conceptually similar to a hydrogen fuel cell, but that makes use of a more readily available (and far cheaper) fuel source to generate power while producing far fewer harmful emissions than a conventional generator.
How it works
The company’s latest offering, the WATT HOME system, recently achieved certification at a 2 kW power rating, marking an important step on the company’s commercialization roadmap as it races to meet market demands for a natural-gas-powered backup solution to guarantee uptime in outage-prone regions.
This week, the company marked another major milestone by installing the of its first 2 kW WATT HOME solid oxide fuel cells (SOFC) at the Edward M. Smith National Career and Life Skills Development Center, Hope Gas’ new state-of-the-art training facility in Clarksburg, West Virginia – but the news doesn’t end there.
The company plans to take advantage of the new 30% ITC benefit (a federal tax credit that lets homeowners deduct 30% of the cost of qualifying clean energy systems, which now includes natural gas) under the One Big Beautiful Bill Act to help drive sales, with installations beginning in Hope Gas’ utility territory in Q1 of 2026.
“The WATT HOME system’s new 2 kW certification … validates the performance capabilities we’ve engineered for years and strengthens our competitive position as we move into multi-year deployment with Hope Gas,” says Caine Finnerty, WATT’s CEO and Founder. “With the ITC benefit, we anticipate accelerated adoption and substantial value for customers, utilities, and investors.”
The gas fuel cell can send power directly to the home’s panel, keeping the lights on directly, or perform the same function as a solar panel, sending power to a battery where it can be stored for later use.
Keep in mind, though – this isn’t a zero emissions option the way a solar + battery solution is. This is very much a fossil fuel-powered solution that gives off carbon and nitrous emissions, and the only reasons we’re talking about it are:
- the tech is kind of cool
- I didn’t know these existed
- it is objectively cleaner than a conventional ICE generator
That said, while solar is still the better solution in an ideal world, a WATT HOME fuel cell might be a better option in situations where rooftop space is limited (or nonexistent), such as condos or vertically-designed townhomes. In those scenarios, solar panels are unlikely to generate a meaningful amount of electricity, but a fuel cell that can tap into the buildings’ existing natural gas lines to provide reliable backup power if the grid fails.
That makes the fuel cell an attractive option for residents in multi-unit buildings, older historic neighborhoods with strict aesthetic rules, or any building where adding solar panels aren’t feasible, but a low-emission, low-noise backup solution is still needed.
The better question, then, isn’t is it better than solar – it’s is it better than solar for you? If you’re in West Virginia, you might be able to find out in just a few weeks. In the meantime, watch WATT’s own explainer video, below, then let us know what you think of the idea of a natural gas fuel cell in the comments.
Powering your home with a fuel cell
SOURCE | IMAGES: WATT, via PRNewswire.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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French heavy lift and logistics specialists Mammoet are living up to their name with the addition of a new, mammoth-sized, 60-ton hybrid crane from the electric equipment experts at XCMG.
The 60-ton XCA60 EV crane from Chinese heavy equipment brand XCMG rides on three heavy-duty axles and packs a 48-meter telescopic boom. Add in an optional 16-meter jib, and the big crane’s hoist height tops 60 meters – more than enough to work on urban construction jobs or shipside at port.
“This delivery marks more than just a product handover – it’s a step forward in redefining what’s possible in sustainable lifting operations,” explains Zhen Li, chairman of XCMG Europe. “We’re proud to support Mammoet’s efforts to reduce environmental impact and look forward to seeing the XCA60-EV contribute to a cleaner, more efficient tomorrow.”
Taking delivery
The XCMG XCA60 EV powers its drive and lift motors with a 170 kW (~230 hp) electric motor that’s fed by a 115 kWh li-ion battery pack that’s integrated into the crane’s counterweight system. That means that the crane’s bigger battery, in this case, means more lifting power as well as more operating time on battery power – in this model, the crane’s battery is good for 6-8 hours of continuous operation.
On sites where access to grid power is limited, the onboard diesel generator can kick on and provide additional, extended hours of operation (hence: hybrid) while offering as much as a 40% increase in efficiency compared to a diesel drive unit.
Mammoet’s new XCA60 EV is one of the first production examples of the big electric-drive crane, which was first shown as a concept at Bauma 2022, to reach customers – but it won’t be the last.
“Mammoet is proud to be investing in the XCMG XCA60-EV crane, which is another important step in our ambition to deliver sustainable heavy lifting to the Dutch market, and beyond,” says Peter van Oostrom, director of global assets at Mammoet. “We look forward to seeing it deliver real results for our clients, helping to reduce the carbon impact of projects, while increasing their safety.”
SOURCE | IMAGES: Mammoet, via Crane Briefing; PRNewswire.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
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