Former Binance CEO Controls Majority of BNB Supply Amid a Bullish Trend
Summary:
The former Binance CEO, Changpeng Zhao (CZ), reportedly controls 64% of Binance Coin's (BNB) circulating supply, according to a Forbes report. Holding a 90% stake in Binance and significant crypto holdings, CZ has become the world's 24th richest person. The report also reveals Binance and CZ jointly possess 71% of the total BNB in circulation. In 2023, Zhao, then the CEO, faced indictments from the U.S. Department of Justice for alleged sanction violations and money laundering, where he pleaded guilty and stepped down from Binance. Despite the fines and a four-month prison sentence, BNB continues its bullish trend, doubling its value since January 2024.
In a recent revelation by Forbes, it was disclosed that Changpeng Zhao (CZ), the ex-CEO of Binance, holds about 94 million BNB tokens, which equates to 64% of Binance Coin's (BNB) overall supply. This finding was based on a thorough evaluation carried out by Gray Wolf Analytics in conjunction with the business news platform. The Binance founding team was initially granted 80 million BNB tokens, and the company still has possession of 46 million from this initial allocation. The disclosure showed that a combined 71% of the 147 million BNB presently circulating is held by Binance and CZ. As a result of his 90% shareholding in Binance and his substantial crypto assets, Zhao is now regarded as the world's 24th wealthiest person, with a net value estimated to be $61 billion.
BNB is Binance exchange's native token, and it serves for payments and rewards within the Binance ecosystem. This functional coin has a maximum limit of 200 million, with more than 153 million BNB tokens now on the market. The market capitalization of this coin stands over $91 billion, with each token valued at $593. BNB has had a profitable period, which has more than doubled the token's value from lows of nearly $290 in January 2024 to a high of $724 in June.
In 2023, CZ and Binance were charged by the U.S. Department of Justice (DOJ) for alleged breaches of sanctions and money laundering regulations. Back then, Zhao was the CEO, and he negotiated a plea agreement with the U.S. authorities. He admitted to infringing the Bank Secrecy Act and consented to relinquish his executive role at Binance, making way for Richard Teng, the current CEO. The deal also required Zhao to pay a fine of $50 million and Binance to pay a massive fine of $4.3 billion. Binance was also ordered to be overseen by the Forensic Risk Alliance, an independent consultancy, for the next three years.
On April 30th, U.S. Federal Judge Richard Jones sentenced Zhao to four months in prison. This sentence was significantly less than the three years that U.S. prosecutors had recommended due to Zhao's supposed involvement in violating sanctions and aiding money laundering.
Published At
6/14/2024 10:39:37 PM
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