Former Binance chief Changpeng Zhao’s four-month prison stay may have turned out to be a highly lucrative career move. During his time in a California prison earlier this year, CZ, as he is commonly known, potentially earned more money than most executives could dream of making in a lifetime.
According to Forbes’ calculations, CZ’s net worth, primarily derived from equity in privately held companies, could have skyrocketed into the billions while he was behind bars. Some estimates suggest that he may have made a staggering $25 million for each day of his prison sentence.
However, conflicting reports from Bloomberg present a different perspective. This news agency, using a more conservative methodology, estimates that CZ actually experienced a loss in wealth during his time in prison.
To determine the impact of CZ’s prison term on his net worth, it is crucial to establish the exact dates of his confinement. In November 2023, CZ pleaded guilty to violations of the Bank Secrecy Act related to money laundering through Binance.com. Following this, he resigned as CEO, paid a $50 million fine, and agreed not to dispute the US government’s allegations against Binance.
After facing delays in entering prison due to legal procedures, CZ was eventually admitted to the Lompoc II minimum security facility near Santa Barbara on June 2, 2024. He spent a total of 117 days in prison, from June 2 to September 27, before being released two days earlier than scheduled.
The challenge lies in accurately determining CZ’s net worth change during his prison term, as most of his assets are in privately held companies. While CZ has disclosed holdings in cryptocurrencies like BTC and BNB, the majority of his wealth remains undisclosed. Only CZ himself knows the true extent of his net worth.
Two major news agencies, Bloomberg and Forbes, have attempted to estimate CZ’s wealth. Bloomberg, with low confidence in its assessment, concluded that CZ’s net worth decreased from $36.5 billion on June 2 to $30.8 billion on September 27. Forbes, on the other hand, estimated CZ’s net worth at $61 billion on the same date, nearly double Bloomberg’s figure.
Forbes’ estimates suggest that CZ’s net worth increased by at least $3 billion during his time in prison, potentially reaching $58 billion to $61 billion. This would imply that CZ gained an astonishing $25 million per day in personal net worth while serving his prison sentence.
The conflicting reports from Bloomberg and Forbes highlight the complexity of estimating CZ’s wealth and the significant financial implications of his brief incarceration.