Binance and Coinbase CEOs Lost Some of Their Personal Wealth Following SEC Accusations, Bloomberg Says June 6.
Leaders made billions before latest loss
The U.S. Securities and Exchange Commission sued Binance on June 5 and sued Coinbase on June 6, alleging the two companies violated securities regulations.
These events affected the crypto market, company valuations, and more. Bloomberg said Binance CEO Changpeng Zhao saw his net worth shrink from $1.4 billion to $26 billion within two days of the charges. He added that Coinbase CEO Brian Armstrong saw his net worth shrink from $361 million to $2.2 billion.
Together, their personal losses amount to $1.761 billion.
Bloomberg also noted that each executive’s net worth rose before the latest downturn. The executives earned a total of $15.4 billion earlier this year, with Zhao’s net worth up 117% and Armstrong’s up 61%.
Data comes from Bloomberg’s own index
Bloomberg cited its own Billionaires Index as the source of its data.
Zhao estimate is based on his private holdings in Binance Holdings and Binance.US., though Bloomberg’s star rating indicates he has little confidence in his estimate.
Brian Armstrong is not publicly traded on the Bloomberg Index, but Bloomberg’s estimate is based at least in part on his stock in Coinbase. Bloomberg said Armstrong owns 16% of the company’s shares, COIN. The stock is down 15% today.
The CEOs of Binance and Coinbase together lost $1.7 billion in personal wealth after the SEC accusations emerged first on CryptoSlate.