Cryptocurrency billionaires have had a tough year. Allegations of fraud, lawsuits and government investigations, internal disputes, and the collapse of asset values have combined to bruise a fragile sector. In the past 12 months, its billionaire promoters have lost a combined $110 billion, according to Forbes’ 2023 Billionaires List, an annual compilation of ten-digit fortunes.
The Crypto Boom
In the 12 months leading up to March 2023, cryptocurrencies lost approximately $700 billion in market value, dropping to $1 trillion, according to CoinMarketCap. Additionally, private cryptocurrency start-ups’ valuations have collapsed due to rising interest rates and technology investors’ withdrawals. The cryptocurrency market contagion, which began last summer with the explosion of the Three Arrows Capital hedge fund and culminated in FTX’s implosion in November, triggered a broad regulatory crackdown in the US led by SEC Commissioner Gary Gensler and US prosecutors, scaring investors and sparing no billionaire in the cryptocurrency sector.
Cryptocurrency billionaires have taken a massive hit in the past year. However, the future of the sector is still uncertain, as regulatory agencies continue their investigations and crackdowns on fraudulent activities. It remains to be seen if this trend will continue or if the cryptocurrency market will bounce back from this rough patch.
Over the past twelve months, the net worth of some of the wealthiest cryptocurrency investors has fluctuated greatly. As of March 10th, 2023, their net worths were measured and compared with those from March 11th, 2022.
The Biggest Loser
1- Sam Bankman
Sam Bankman fried experienced the biggest crash of the year. Twelve months ago, the cryptocurrency mogul’s FTX exchange had just completed a $400 million fundraising round that valued it at $32 billion, giving Bankman-Fried a net worth of $24 billion and making him one of the 50 richest people in the world, according to Forbes estimates.
Since then, FTX has filed for Chapter 11 bankruptcy protection, and Bankman-Fried’s fortune is now worth almost nothing. US prosecutors have charged him with several counts of fraud and other financial misconduct (he has pleaded not guilty to all charges). Bankman-Fried’s former colleagues, Caroline Ellison and ex-billionaire Gary Wang, have become state witnesses. His trial is set to begin in October, and he faces life imprisonment.
2- Changpeng Zhao
Changeng Zhao remains on top, founder and CEO of the cryptocurrency exchange Binance, is still the richest person in the sector, although Forbes now estimates his fortune at $10.5 billion, down from $65 billion a year ago. Last month, the US Commodities and Futures Trading Commission sued Zhao and Binance for allegedly circumventing US compliance controls. Meanwhile, Justice Department prosecutors, in collaboration with IRS officials, are considering charging Zhao and Binance with money laundering and tax evasion, as Reuters reported earlier this year. Additionally, the Securities and Exchange Commission (SEC) is conducting its investigation into Binance, as reported by the Wall Street Journal last year. The SEC is also preparing to sanction cryptocurrency brokerage firm Paxos for its role in issuing Binance’s BUSD stablecoin, an exchange mechanism used by Binance traders, according to the Wall Street Journal. CZ and Binance have not been charged by the DOJ or the SEC, and Binance has denied the allegations reported.
3-Jed McCaleb
Jed McCaleb is a well-known American programmer and entrepreneur in the cryptocurrency industry. He is the co-founder of Stellar, a blockchain-based payment protocol, and was also one of the creators of Ripple, another cryptocurrency platform. Despite fluctuations in the value of cryptocurrencies, McCaleb’s net worth has remained relatively stable over the past year, currently estimated at $2.4 billion.
4-Brian Armstrong and Chris Larsen
Brian Armstrong and Chris Larsen, who are both prominent figures in the cryptocurrency world, have found themselves tied for third place with a net worth of $2.2 billion. However, this represents a significant drop from their previous net worths of $6.6 billion for Armstrong and $4.3 billion for Larsen. Despite the decrease, they still remain among the wealthiest individuals in the crypto space.
5-Nikil Viswanathan and Joseph Lau
Nikil Viswanathan and Joseph Lau are co-founders of the blockchain infrastructure company Alchemy. Their net worths took a hit, decreasing from $2.4 billion each to $1.8 billion each. Despite the drop, they still hold a significant fortune and continue to lead Alchemy’s efforts to simplify blockchain development for businesses.
6-Cameron and Tyler Winklevoss
Cameron and Tyler Winklevoss, famously known for their early involvement in Bitcoin and co-founding the cryptocurrency exchange Gemini, saw a considerable decline in their net worth. Their net worths decreased from $4 billion each to $1.2 billion each, indicating a significant loss in their fortunes.
7-Matthew Roszak
Matthew Roszak is an American entrepreneur and investor who is known for his involvement in the cryptocurrency industry. He co-founded Bloq, a blockchain technology company, and has been an early investor in several blockchain projects. However, in the past year, his net worth has decreased from $1.4 billion to $1.1 billion, reflecting the volatility of the crypto market. Despite this, he remains a prominent figure in the industry and continues to invest in blockchain startups.
8-Song Chi-hyung
Song Chi-hyung is a South Korean entrepreneur and investor in the cryptocurrency industry. He is known for co-founding Upbit, one of the largest cryptocurrency exchanges in South Korea. However, his net worth has decreased significantly from $3.7 billion to $950 million over the last year. Despite this, Song Chi-hyung continues to remain active in the industry, exploring new opportunities and investing in promising blockchain startups.
9-Fred Ehrsam
Fred Ehrsam is the co-founder of Coinbase, the popular cryptocurrency exchange. His net worth has fallen from $2.1 billion to $930 million over the past year, largely due to a decline in the value of Coinbase shares. However, he remains a significant figure in the crypto space and has also invested in several blockchain projects.
10-Michael Saylor
Michael Saylor is the CEO of MicroStrategy, a software company that has been investing heavily in Bitcoin. Saylor has become a vocal proponent of the cryptocurrency, and his company now holds over 100,000 BTC. However, the recent drop in Bitcoin’s value has affected Saylor’s net worth, which has fallen from $1.6 billion to $760 million.
11-Tim Draper
Tim Draper is a venture capitalist and early investor in Bitcoin. He has been a strong advocate for the cryptocurrency, predicting that it could eventually reach a value of $250,000 per coin. However, the recent market downturn has impacted Draper’s net worth, which has fallen from $1.2 billion to $650 million.
12-Devin Finzer and Alex Atallah
Devin Finzer and Alex Atallah are the co-founders of OpenSea, a popular marketplace for buying and selling non-fungible tokens (NFTs). Over the past year, their net worth has fallen from $2.2 billion to $600 million due to a decline in the NFT market. However, they remain optimistic about the long-term potential of NFTs and continue to build out their platform.
13-Kim Hyoung-nyon
Kim Hyoung-nyon is the co-founder of Upbit, a South Korean cryptocurrency exchange. His net worth has fallen from $1.9 billion to $500 million over the past year, largely due to a decline in the value of Upbit’s parent company. Despite this setback, Upbit remains one of the largest crypto exchanges in the world.
14-Barry Silbert
Barry Silbert is the founder and CEO of Digital Currency Group, a venture capital firm that invests in blockchain and cryptocurrency startups. His net worth has fallen from $3.2 billion to $320 million over the past year, largely due to a decline in the value of Digital Currency Group’s portfolio. However, Silbert remains optimistic about the long-term potential of blockchain and crypto.
15-Sam Bankman-Fried
Sam Bankman-Fried is the former CEO of FTX, a cryptocurrency derivatives exchange. His net worth has taken a massive hit over the past year, falling from $24 billion to an estimated $10 million. However, he remains a prominent figure in the crypto space and has since launched a new platform, Serum.
16-Gary Wang
Gary Wang’s net worth is estimated to be less than $10 million. He is a relatively unknown figure in the world of cryptocurrency, and there is limited information available about his background or source of wealth. Despite this, he continues to be involved in the industry, and his net worth may increase as the cryptocurrency market evolves.
DISCLAIMER
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