Crypto CEOS see a loss of assets after the SEC duplicate lawsuits
Crypto CEOS see a loss of assets after the SEC duplicate lawsuits
retailers and investors are not the only ones who suffer from America's war against cryptocurrencies. Managers of the company also have to accept losses due to the latest enforcement measures.
This week the SEC sued both Binance and Coinbase and thus deleted the optimism for the crypto industry in 2023 after the cycle had reached its low after the collapse of FTX.
As reported, this step on June 6th destroyed more than $ 50 billion from the cryptoma markets within a few hours. The same does not apply to the assets of certain people.
crypto billionaires lose billions
According to the Billionaire Index of Bloomberg, Binance CEO Changpeng Zhao's assets have shrunk by $ 1.4 billion in the past two days. According to the index, it is now worth around $ 26 billion.
According to Glassnode, Binance also recorded an increase in the withdrawals, but the number was limited to around 10,000 BTC, which is only 1.5 % of its total reserves. The situation for Binance, but could worsen after the SEC has made an application for freezing your assets.
In addition, the net assets of Coinbase CEO Brian Armstrong, according to the Billionaires Index, fell by $ 361 million to $ 2.2 billion.
On June 6th, the SEC Coinbase sued because of its work as a non-licensed securities broker and claimed that a number of crypto-assets offered were securities.
Bloomberg reported that after a massive slump in the crypto founders' assets in 2022 there was an upswing with a total increase of $ 15.4 billion in 2023.
The net assets of CZ had increased by 117 % and that of Armstrong by 61 % due to increasing crypto prices and trading activities. Other crypto billionaires in the Bloomberg assets index grew together by 9 %.
That was all until the SEC brought the crypto and share price to crash this week with a flood of legal disputes against the industry.
protection of American banks
The US banking crisis shaked the industry and the supervisory authorities reacted quickly to prevent another financial crisis in the 2008 style (which was caused by US banks).
This could be the reason for your war against cryptocurrencies. Decentralized digital assets are a threat to the banking sector, which largely benefits from lending and investing the money of others.
Sec chairman Gary Gensler actually said America didn't need a crypto because it has the dollar.
"We no longer need digital currency [...] We already have a digital currency, it is called US dollar," said Gensler in an interview with CNBC on June 6th. "Over the centuries, we have not seen that economies and the public need more than one way to move values." He added, which explains almost exactly why he was so important to attack cryptocurrencies.
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