Former Binance CEO Changpeng Zhao (CZ) reportedly controls 64% of the circulating supply of Binance Coin (BNB), according to a recent report by Forbes. This equates to approximately 94 million BNB tokens, solidifying CZ’s significant influence in the cryptocurrency market.
Major Holdings and Net Worth
A forensic analysis by Gray Wolf Analytics and Forbes revealed that out of the initial 80 million BNB tokens allocated to the Binance founding team, the company retains control over 46 million. Combined, Binance and CZ hold 71% of the 147 million BNB currently in circulation. Zhao’s substantial equity stake in Binance and his crypto holdings have propelled him to the 24th position on Forbes’ list of the world’s richest individuals, with an estimated net worth of $61 billion.
BNB Tokenomics
BNB, the native token of the Binance exchange, is utilized for transaction fees and rewards on the platform. The token has a maximum supply of 200 million, with over 153 million BNB tokens circulating. Currently priced at $593 per token, BNB’s market cap exceeds $91 billion. The token has experienced significant growth, more than doubling from around $290 in January 2024 to a high of $724 in June.
Legal Troubles and Resignation
In 2023, the U.S. Department of Justice (DOJ) indicted Zhao and Binance for alleged violations of sanctions and money laundering laws. CZ, who was CEO at the time, entered into a plea deal with U.S. prosecutors. He pleaded guilty to violating the Bank Secrecy Act and agreed to step down from his leadership role, making way for Richard Teng as the new CEO.
As part of the settlement, Zhao faced fines totaling $50 million, while Binance was fined $4.3 billion. Additionally, the DOJ appointed the Forensic Risk Alliance to monitor Binance over the next three years.
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On April 30, Zhao was sentenced to four months in prison by U.S. federal judge Richard Jones. This sentence was significantly lighter than the three years recommended by U.S. prosecutors, reflecting Zhao’s plea agreement and cooperation.
Market Implications
Zhao’s control over a significant portion of BNB’s supply underscores his continued influence in the crypto space, despite his legal challenges and departure from Binance’s leadership. As BNB continues to perform well in the market, Zhao’s holdings remain a focal point of interest for investors and regulators alike.
