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Binance Co-Founder Changpeng Zhao (Photo by Ben McShane/Sportsfile for Web Summit via Getty Images)

Sports archive for Web Summit via Getty Images

CZ’s Net Worth Doubles While He Serves Prison Time

It was clear at the time of his verdict in April that Changpeng Zhao’s four-month prison sentence was a slap in the face and that he would walk away with most of his fortune intact. But the silver lining for the founder of cryptocurrency exchange Binance and admitted criminal is that when he hits the streets in September, what appeared to be a net worth of $33 billion will likely be about double that amount.

Much of the additional profit is the result of Forbes research that uncovered Zhao’s stake in BNB
BNB
the cryptocurrency owned by Binance amounts to 94 million tokens, or 64% of the 147.5 million in circulation. BNB is on the rise this year, nearly doubling to $596. The BNB credited to Zhao – widely known by his initials CZ – due to his 90% ownership of Binance comes in two parts: nearly 42 million that were part of the 80 million awarded to the founding team in 2017 and over 52 million that were left with the exchange as a result of a 100 million token initial coin offering which attracted purchases of less than 11 million tokens.

On paper, CZ’s stake in BNB is worth $56 billion, but if that supply were dumped onto the market all at once, it would almost certainly depress the price. Valuing the tokens at half the market price makes them worth US$28 billion and added to the US$33 billion valuation of CZ’s equity stake in the Binance exchange itself puts his estimated wealth at around US$61 billion. This would take him to 24th place on Forbes list of billionaires from the 50th.

It can go even higher. In the six months since Zhao pleaded guilty to a violation of US anti-money laundering law and agreed to pay a $50 million fine, Binance has gained market share among cryptocurrency exchanges. The valuation of CZ’s 90% stake remains unchanged and will likely increase if the company’s results improve.

Full story: How Crypto’s Richest Billionaire Doubled His Net Worth Behind Bars

Trump calls for US monopoly on Bitcoin

Bitcoin
Mining

“We want all remaining Bitcoin to be MADE IN THE USA!!!”, Donald Trump he said on a publish on his social media platform Truth Social. The former president and presumptive Republican nominee, who embraced cryptocurrency after years of skepticism, is using digital assets to score points with voters. Incumbent Joe Biden has been less enthusiastic about the sector, although the Bloc has reported that his re-election campaign could accept crypto donations.

Trump said bitcoin “could be our last line of defense against” a central bank digital currency (CBDC), reiterating opposition to the so-called digital dollar issued by the Federal Reserve. The Fed has explored the concept but has not expressed an opinion on whether it is a good idea. Trump classified the CBDC as a “dangerous threat to freedom” and promised to block its creation if he is re-elected.

Mining remaining bitcoins in the US will also help the country be “ENERGY DOMINANT,” Trump wrote. Bitcoin mining consumes significant amounts of energy, but can be shut down during periods of peak demand and restricted at other times, rewarding electricity generators that add capacity with stable use.

Meanwhile, bitcoin mining company Core Scientific is on the rise as it redirects some of its power-hungry hardware to the high-performance computing (HPC) that underpins artificial intelligence operations. Core has revealed new details about the 300 megawatts of available HPC infrastructure that will be in addition to the 200 megawatts committed in a recent deal with AI hyperscaler CoreWeave. CoreWeave liked the company so much that it tried to buy it, offering $5.75 per share or $1 billion on June 3. Three days later, Core Scientific’s board rejected the offer for undervaluing its company, and shares ended Friday at $10.33a 33% increase over the week.

Sources: Forbes Digital Assets, CoinGecko. Prices from 4pm on June 14, 2024.

Some creditors refuse FTX’s generous bankruptcy payout

Lawyers overseeing FTX’s bankruptcy have come up with a reorganization plan that would not only fully reimburse nearly all of the bankrupt cryptocurrency exchange’s customers but also give them 18% interest for the period their investments were tied up. By typical bankruptcy standards, this is a great deal. But not all lenders are jumping for joy.

One important issue is that the exchange’s former customers are receiving full compensation for the dollar value of their cryptocurrency holdings at the time FTX filed for bankruptcy protection in November 2021. Unfortunately, this was close to the nadir of digital asset values ​​because of an industry crisis that was exacerbated by the company’s failure. Bankruptcy cases typically work this way, but a chorus of creditors, commentators and academics claim that clients have been unfairly deprived of their properties, and that’s not the only thing that concerns them.

They also claim that FTX’s current management is failing to maximize the company’s value, neglecting the best interests of former clients and other creditors. Recurrent complaints have been made against Sullivan & Cromwell, the main law firm representing the current FTX and also its counsel for various pre-bankruptcy matters.

In another place

Ether ETFs Likely Approved in September, SEC Chairman Gensler Tells Senators [Crypto News Flash]

The State of Crypto: The Fortune 500 Moving Up the Chain [Coinbase]

SEC reaches $4.47 billion settlement with now-bankrupt crypto firm Terraform Labs [Reuters]

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