SEC Lawsuits Shredded the Net Worth of Coinbase and Binance CEOs

The net worth of Coinbase CEO Brian Armstrong and Binance CEO Changpeng Zhao (CZ) have taken a huge hit due to recent lawsuits by the United States securities regulator.

Armstrong’s net worth dropped by $289 million and Zhao’s by $1.33 billion within 30 hours after the Securities Exchange Commission (SEC) sued Binance on June 5 and then Coinbase on June 6. statistics From the Bloomberg Billionaires Index and Forbes.

Zhao – the richest man in the cryptocurrency industry and the 54th richest person overall – had a net worth of Fall Up 5.1% this week to $26 billion.

While the Binance CEO’s net worth has increased by more than 106% this year, he is still down more than 73% from his peak net worth of $96.9 billion in January 2022.

Armstrong is rank Ranked as the 1,409th richest person by Forbes and hit big by the latest SEC action, his net worth fell 11.8% to $2.2 billion.

The Coinbase CEO has managed to reap the rewards of this year’s market rally, with a 61% increase in his net worth during that time.

Despite recent declines, Zhao and Armstrong have seen net worth growth well above the 9% annualized returns for others on Bloomberg’s rich list.

Connected: SEC files motion for restraining order against Binance

The SEC sued both Binance and Coinbase, alleging that the exchanges broke various securities regulations, specifically for allegedly offering cryptocurrencies that the regulator considers unregistered securities.

Following the suites, a total of 67 cryptocurrencies are now classified as securities by the SEC.

Both Binance and Coinbase have confirmed that they will “vigorously” defend the lawsuits filed against them.

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