The net worth of Brian Armstrong, CEO of Coinbase, and Changpeng Zhao (CZ), CEO of Binance, has taken a hit due to recent lawsuits filed by the US SEC.
Armstrong’s net worth dropped by $289 million and Zhao’s by $1.33 billion in a span of 30 hours after the Securities and Exchange Commission (SEC) sued Binance on June 5 and Coinbase on June 6 , according to data Bloomberg and Forbes Billionaires Index.
The net worth of Zhao, the richest man in the cryptocurrency industry and the 54th richest person in the world, fell 5.1% up to $26 billion this week.
Although the Binance CEO’s net worth has rebounded more than 106% this year, it is still down more than 73% from his highest net worth of $96.9 billion in January 2022.
Armstrong occupies ranked 1,409 of the richest people according to Forbes and has been the most affected by the latest SEC measuressince his net worth has fallen by 11.8%, to USD 2.2 billion.
The Coinbase CEO has managed to reap the rewards of a market rally this year: he achieved a 61% increase in his net worth in that time.
Despite the recent drop, Zhao and Armstrong’s net worth has risen well above the 9% return recorded so far this year by other members of Bloomberg’s rich list.
The SEC sued both Binance and Coinbase, alleging that the exchanges were in breach of various securities regulations.not least for allegedly offering cryptocurrencies that the regulator considers unregistered securities.
Following the lawsuits, a total of 67 cryptocurrencies have been classified as securities by the SEC.
Binance and Coinbase have confirmed that they will “vigorously” defend against the lawsuits.
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