After the market experienced a trillion-dollar crypto crash in 2022, it was a tough financial year for cryptocurrency billionaires. Several lawsuits have been filed by disgruntled investors seeking compensation for their losses. Meanwhile, the top crypto billionaires together experienced a loss of $112.7 billion in just one year.
Finbold has identified the top five names in the cryptocurrency industry, along with their total net losses, according to Statista research as of December 1, 2022. Obviously, Binance founder and CEO Changpeng Zhao (CZ) is the crypto billionaire who suffered the biggest net loss after the 2022 crypto crisis, with a $82 billion fall in net worth. When Zhao came to FTX founder and former CEO Sam Bankman-Fried, who reportedly lost $23 billion in just three weeks before being arrested for conspiracy and fraud at the end of 2022. Elsewhere, the CEO and CEO of Coinbase suffered the third largest loss among the top five crypto titans at $4.7 billion.
Meanwhile, FTX operator Gary Wang and Ripple co-founder Chris Larsen lost $1.7 billion and $1.3 billion, respectively. Importantly, the same five crypto leaders who lost the most money in 2022 were among the five richest people in crypto before the market. Interestingly, with a current net worth of $14.6 billion, Zhao holds the title of the richest person in the cryptocurrency industry. Last year, it was reported to have a net worth of $96.5 billion.
On December 12, 2022, Bankman-Fried was arrested in the Bahamas for wire fraud, securities fraud, money laundering and conspiracy to defraud the United States of America. FTX, which at one time was the fourth largest cryptocurrency exchange in the world, filed for bankruptcy in November 2022 due to liquidity problems.
FTX Crypto Crash
This happened when he tried to sell a significant part of his operating company to the competitor Binance; However, Binance later decided to back out of the deal, saying it was beyond its power to help FTX solve its problems. Following revelations that a former FTX executive transferred client assets to hedge fund Alameda Research, the US Securities and Exchange Commission (SEC) accused Bankman-Fried of conspiring to defraud investors.
The SEC indictment comes on the heels of the allegations. Bankman-Fried has denied any wrongdoing, including claims that he knew Alameda Research was using FTX client money. Bankman-Fried also denied being involved in any illegal activity.