Binance’s BNB crypto token surges after founder Zhao starts stint as richest US inmate
- Founder Zhao Changpeng is worth an estimated US$38.5 billion after the BNB token reached a market cap of US$109 billion during his first week of in prison.d
The BNB token, a cryptocurrency linked to Binance and its incarcerated co-founder Changpeng Zhao, surged to a record high in the first week of his four-month jail sentence in the US.
Its rally underscores Zhao’s status as the richest person ever to do time in a US federal lock up. Zhao reported to a prison in California on Tuesday to begin a four-month sentence for failing to properly safeguard the world’s largest crypto exchange against money laundering.
The price of BNB climbed to a peak of US$717.48 on Thursday, lifting its market capitalisation to US$109 billion, according to data from CoinGecko. The token has more than doubled in price since the start of the year.
The trajectory of BNB also reflects the fortunes of Binance itself. The total value of assets on the exchange has swollen from around US$80 billion in early January to US$125 billion today, cementing its dominance even after a precarious period last year that culminated in the company paying a historic US$4.3 billion fine to settle a case with US authorities.
Holders of BNB get trading-fee discounts on Binance and the token is also used to settle fees on BNB Smart Chain, a blockchain popular with crypto apps, including games and exchanges.
