Binance CEO And Coinbase CEO Lose Wealth After SEC Attack

Key Points:

• Binance CEO Changpeng Zhao and Coinbase CEO have seen their wealth shrink over the past two days.
• The SEC is attacking all fronts to crack down on 2 exchanges.

According to Bloomberg, the net worth of two major crypto industry billionaires, Binance CEO Changpeng Zhao and Coinbase CEO Brian Armstrong, has recorded a significant decrease after the troubles related to the US Securities and Exchange Commission.

The Bloomberg Billionaires Index showed that Binance CEO Zhao Changpeng’s net worth shrank by $1.4 billion to $26 billion in the past two days, while Coinbase CEO Brian Armstrong’s net worth Assets shrank by $361 million to $2.2 billion.

This is after the US SEC sued two companies for violating securities rules, causing the stocks and tokens of several crypto-related companies to plummet.

Before this week’s decline, Changpeng Zhao’s net worth had soared 117 percent this year, while Coinbase CEO was up 61 percent. In contrast, the net worth of the other billionaires in the Bloomberg Wealth Index rose a combined 9%.

The US Commodities Futures Trading Commission (CFTC) also accused Zhao and Binance of habitually breaking its standards three months ago.

As a result, Zhao and former Chief Supervisor Samuel Lim were charged with breaking eight basic elements of the US Commodities Exchange Act, including the need that safeguards be put in place to prevent and identify money laundering and financial activities.

The SEC has also been looking into whether Binance improperly traded digital currency for months. The SEC may have jurisdiction over a virtual currency if investors purchase it to finance a corporation or project for profit.

The SEC said in a complaint filed on Monday that Binance‘s CEO and the exchange deceived investors and authorities mismanaged consumer cash, and violated securities laws. Zhao, 46, co-founded the exchange in 2017 and helped it grow into a worldwide behemoth. His personal net worth increased as well, peaking at $96.9 billion in January 2022.

According to the filing, the corporation ran an exchange and marketed unregistered securities, skewed trading controls, and committed a variety of other offenses.

The SEC also filed a lawsuit against cryptocurrency exchange Coinbase in federal court in New York on Tuesday morning, stating that the firm was functioning as an unregistered broker and exchange and requesting that the company be permanently stopped and enjoined from doing so in the future.

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Harold

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