Binance founder Changpeng Zhao was released from custody on Sept. 27, leading to a slight dip in the prices of Bitcoin (BTC) and Binance’s BNB token since the beginning of the trading day.
A previous Forbes report revealed that Zhao holds 64% of the total BNB supply, with his net worth estimated at $61 billion in June 2024, making him the 24th richest person globally at that time. Concerns about the centralization of Binance’s token were raised following the report due to Zhao’s substantial holdings.
Currently, Zhao’s 94 million BNB tokens are valued at roughly $57 billion, a noticeable decrease from June 2024, when BNB prices exceeded $700. A 2024 analysis by Gray Wolf Analytics and Forbes indicated that 80 million BNB tokens were initially allocated to the original Binance team, with the company still retaining around 46 million tokens.
DOJ Charges and Settlement Affect BNB Price
The U.S. Department of Justice (DOJ) brought charges against Binance and Zhao in 2023, accusing the Binance founder of violating the Bank Secrecy Act. According to a joint statement from the Treasury Department’s Office of Foreign Assets Control, the Financial Crimes Enforcement Network, and the Commodity Futures Trading Commission, Binance’s criminal and civil liabilities were expected to significantly influence cryptocurrency trading.
Their prediction came true when, on Nov. 21, BNB’s price rose by 7% within 24 hours after news broke of a $4 billion settlement between Binance and the Securities and Exchange Commission (SEC). The settlement cost Binance $4.3 billion, while Zhao was fined an additional $50 million. Furthermore, the DOJ mandated independent monitoring of Binance’s operations for the next three years, appointing the Forensic Risk Alliance for oversight.
