Brian Armstrong, the CEO of Coinbase, and Changpeng Zhao (CZ), the CEO of Binance, have experienced significant decreases in their respective net worths following lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against their companies. The lawsuits accused both exchanges of violating securities regulations by offering unregistered cryptocurrencies.
Within a span of 30 hours after the SEC sued Binance on June 5 and Coinbase on June 6, Armstrong's net worth plummeted by $289 million, while Zhao saw a staggering decrease of $1.33 billion, resulting in a 11.8% and 5.1% loss, respectively. These figures were obtained from the Bloomberg Billionaires Index and Forbes.
Despite the recent setbacks, Zhao remains the wealthiest individual in the cryptocurrency industry and the 54th richest person globally, although his net worth declined by 5.1% to $26 billion this week. While Zhao's net worth has rebounded by over 106% since the beginning of the year, it is still down by more than 73% from its peak of $96.9 billion in January 2022.
On the other hand, Armstrong, ranked as the 1,409th richest person by Forbes, experienced a net worth decrease of 11.8% to $2.2 billion due to the SEC's actions. However, he has still managed to benefit from the market's recovery this year, with a 61% increase in net worth during that time.
It is worth noting that both Zhao and Armstrong have seen significant net worth growth, surpassing the 9% year-to-date returns of others on Bloomberg's wealthy list.
In total, the SEC has classified 67 cryptocurrencies as securities following the lawsuits against Binance and Coinbase. Both exchanges have expressed their determination to vigorously defend themselves against the allegations brought forth by the regulator.
In summary, the lawsuits filed by the SEC have had a detrimental impact on the net worths of Brian Armstrong and Changpeng Zhao, with Armstrong experiencing an 11.8% decrease and Zhao suffering a 5.1% loss. Despite these setbacks, both individuals have seen substantial net worth growth throughout the year, and they remain committed to defending their respective companies against the SEC's accusations.
