eBeside the prominent individuals such as Changpeng Zhao and Sam Bankman-Fried, numerous founders and CEOs of different digital currency companies are currently under close scrutiny by U.S. regulatory bodies.
On November 22, Changpeng Zhao (CZ) announced his departure from Binance, acknowledging a violation of anti-money laundering laws. Simultaneously, he agreed to pay a 4.3 billion USD fine as part of a settlement with the U.S. government, allowing the cryptocurrency exchange to continue its operations.
Nevertheless, CZ is not the sole individual facing scrutiny from regulatory authorities. The cryptocurrency market experienced a remarkable crisis last year as token prices sharply declined, placing industry leaders in challenging situations. It’s important to note that being investigated and accused does not automatically imply wrongdoing or eventual conviction, and these individuals all reject the allegations made by the United States.
Changpeng Zhao (CZ) – CEO of Digital Currency Company(Binance)
CZ was born and raised in China before moving to Canada at the age of 12. He established Binance in Shanghai in 2017, later relocating the exchange to Tokyo and subsequently Malta, with the company’s headquarters based in the Cayman Islands. Despite owning substantial real estate in Singapore and a luxury unit in Dubai’s Burj Khalifa, this billionaire tends to keep a low profile regarding his wealth.
Apart from reaching a settlement with the U.S. Department of Justice (DOJ), the Commodity Futures Trading Commission (CFTC), and the U.S. Department of the Treasury, the platform is encountering additional difficulties. In June, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and CZ, accusing them of running a deceptive website. The SEC alleges that Binance misrepresented trading volumes, redirected customer funds, failed to restrict U.S. customers, and deceived investors about market surveillance measures.
Binance contends that the SEC’s legal action lacks merit based on established facts, laws, or the commission’s own precedents.
Sam Bankman-Fried – Former FTX CEO
In November, the grand jury in New York (USA) found former FTX CEO Bankman-Fried guilty of defrauding customers and investors of at least 10 billion USD.
Bankman-Fried admitted to errors in managing FTX but denied misleading customers. This marks a significant criminal case in the cryptocurrency sector. Before the conviction, Bankman-Fried held a prominent position in the digital currency community. The FTX exchange, which he founded, was previously recognized as the world’s second-largest cryptocurrency exchange.
Prior to FTX’s downfall, Bankman-Fried possessed assets valued at 26 billion USD.
Do Kwon – Co-Founder of Terraform Labs
Do Kwon, co-founder of Terraform Labs, played a key role in the development of digital currencies like TerraUSD and Luna. At one point, the market value of TerraUSD and Luna exceeded 40 billion USD, and their downfall resulted in the financial ruin of millions of investors.
Authorities claim that Kwon is confronting various fraud charges in the United States and was apprehended in Montenegro in early 2023 for allegations of document forgery. Additionally, the SEC has initiated a civil lawsuit against both Kwon and Terraform Labs, alleging their involvement in a cryptocurrency fraud scheme worth billions of dollars.
In a statement from the Montenegro court, Kwon has refuted the accusations of document forgery. As per court records dated October 30, Terraform asserted that the SEC failed to present compelling evidence demonstrating the fraudulent activities of Do Kwon and Terraform.
Alex Mashinsky – The founder and ex-CEO of Celsius Network
In July 2022, Alex Mashinsky, the founder and ex-CEO of Celsius Network, submitted a bankruptcy petition. Legal authorities in New York filed a lawsuit against Mashinsky in January, accusing him of fraud. Mashinsky’s attorney mentioned that the former CEO rejects the charges and seeks to present his defense in court.
Furthermore, Mashinsky is contending with legal actions from the SEC, CFTC, and the U.S. Federal Trade Commission (FTC), alleging that he misrepresented the company’s actual status through deceptive advertising
Barry Silbert – The leader of the Digital Currency Group
Silbert serves as the leader of the Digital Currency Group (DCG), the parent company of Genesis, which submitted a bankruptcy petition in January 2023. Silbert, along with Genesis and DCG, is accused of defrauding customers by more than 1 billion USD. He dismisses the allegations as unfounded and expresses his intent to vigorously contest the lawsuit in court.
Stephen Ehrlich – CEO of Digital Currency Company
The cryptocurrency firm Voyager Digital, led by Stephen Ehrlich, experienced substantial impacts during the 2022 digital currency crisis. In addressing accusations of customer deception by the CFTC and FTC, Ehrlich asserted that he was unfairly used as a “scapegoat” for the unethical practices of other companies.
Justin Sun – Chinese Crypto Entrepreneur
In March, the SEC initiated a legal action against Chinese crypto entrepreneur Justin Sun and his affiliated companies, including the Tron Foundation, accusing them of fraud. The SEC contends that Justin Sun misrepresented the trading volumes of the company’s digital tokens and concealed payments to celebrities for promoting them. Sun responded in a post on the X platform, asserting that the SEC’s allegations are without merit.
According to Thanhnien.vn
By. Pham Thanh Bien
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