The U.S. Securities and Exchange Commission (SEC) recently charged Binance and Coinbase, two of the largest cryptocurrency exchanges, with violating securities regulations. The charges have had a significant impact not only on the companies but also on their CEOs.
CEOs Experience Personal Losses
According to Bloomberg’s Billionaires Index, Binance CEO Changpeng Zhao and Coinbase CEO Brian Armstrong both experienced personal losses in the aftermath of the SEC charges. Zhao’s net worth decreased by $1.4 billion to $26 billion, while Armstrong’s net worth decreased by $361 million to $2.2 billion. Together, their losses totaled $1.761 billion.
Prior to the SEC charges, both executives had seen significant increases in their net worth. Earlier this year, Zhao’s net worth rose by 117%, and Armstrong’s rose by 61%, resulting in a combined gain of $15.4 billion.
Bloomberg’s estimates are based on private holdings in Binance Holdings and Binance.US for Zhao, and on Armstrong’s stock in Coinbase. However, Bloomberg’s star ranking for Zhao’s estimate indicates a lack of confidence in the accuracy of the data. Additionally, Armstrong is not publicly listed on Bloomberg’s index, but his estimated net worth is based on his 16% ownership of the company’s stock, COIN, which has seen a 15% drop in value in recent days.
The SEC charges against Binance and Coinbase have resulted in significant personal losses for their respective CEOs. While both executives had seen significant gains earlier this year, the recent downturn serves as a reminder of the volatility that exists within the cryptocurrency market.