December 25, 2022

Forbes Says Crypto Tycoons Lost $116 Bln in 9 Months

Crypto Billionaires

Crypto Billionaires

This year, the crypto industry witnessed strenuous phases due to the bear market and the wave of bankruptcies that made crypto billionaires lose billions of their fortunes.

According to a recent report by Forbes, 17 of the crypto tycoons lost about $116 billion over the past nine months since march, as 15 of them lost about half of their fortunes. In addition, ten lost their billionaire status, according to Forbes estimates.

The most significant loss was attributed to the CEO of the largest crypto exchange, Changpeng Zhao, the CEO of Binance. Zhao’s 70% stake in the crypto exchange was estimated at$65 billion in March, but it is now valued at only $4.5 billion.

Forbes reported that Zhao is facing growing doubts about centralized exchanges, especially Binance and continuous investigations of his company by US and European authorities over claims of “facilitating money laundering and other financial crimes.” However, Zhao confirmed that the deposits of crypto users are fully backed.

Coinbase CEO Brian Armstrong lost more than half of his fortune, valued at $1.5 billion after it was $6 billion in March. Coinbase’s stock plummeted 64% since August and more than 95% from its $100 billion IPO in April 2021, annihilating much of Armstrong’s fortune.

While the fortune of Ripple’s Co-founder Chris Larsen declined from $4.3 billion in March to $2.1 billion. Also the bitcoin billionaires Cameron and Tyler Winklevoss lost more than 50% of their fortunes as they reached $1.1 billion each after they were valued at $4 billion.

Regarding those who lost their billionaire status, the fortunes of co-founders of FTX Sam Bankman-Fried (SBF) and Gary Wang are zero this month after they were valued in March at $24 billion and $5.9 billion, respectively. FTX, once valued at $32 billion, collapsed in a matter of days after the CEO of Binance said his exchange would liquidate its FTT tokens, a matter that led to the plunge of FTT value. FTX filed for Chapter 11 bankruptcy on November 11.

Days ago, SBF was released on a $250 million bail package after making his first appearance at a US court to face fraud charges over the FTX collapse.

Moreover, the stake of Barry Silbert, founder and CEO of Digital Currency Group (DCG), was estimated at $3.2 billion in DCG in March and became $0 following the collapse of FTX.

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