The Securities and Exchange Commission (SEC) has filed lawsuits against two of the largest cryptocurrency exchanges globally — Binance and Coinbase. The lawsuits led to billions being slashed from the net worth of both CEOs. Bloomberg reported that over the past two days, Binance CEO Changpeng Zhao’s wealth dipped by $1.4 billion to $26 billion, and Coinbase boss Brian Armstrong took a hit of $361 million to his net worth, which currently sits at $2.2 billion. SEC’s lawsuits were filed against both crypto chiefs for breaking the securities rules by failing to register with the regulatory body. As a result, shares of crypto and blockchain firms have tumbled. The SEC sued Binance CEO Zhao on Monday, listing 13 charges of allegedly operating a “web of deception,” and secretly controlling clients’ assets. On the other hand, the SEC sued Coinbase on Tuesday for allegedly acting as an unregistered broker and trading 13 unregistered crypto assets, including tokens Solana, Cardano and Polygon, since 2019. Both lawsuits imply SEC Chair Gary Gensler’s moves to enforce more oversight over the cryptocurrency market, which he has called the “Wild West” of investing. The crypto market has experienced losses, with the price of Bitcoin trading at $25,710 on Tuesday, down about 4% from the day before the lawsuits. This year, through Friday, Binance CEO Zhao and Coinbase boss Armstrong saw their net worth rise by $15.4 billion, as both billionaires witnessed an increase of 117% and 61%, respectively.
Binance and Coinbase Executives’ Fortunes Decreased by Billions of Dollars
