SBF Sentenced to 115 Years, These 6 Crypto Bosses ‘Wait Your Turn’ Tech – 8 hours ago

Jakarta, CNBC Indonesia – The crypto world is not doing well. After prices fell some time ago, it was apparently followed by a hunt for crypto company bosses by United States (US) regulators.

One of them is Sam Bankman-Fried, boss of FTX, due to one of the world’s biggest crypto frauds. However, there are a number of other crypto company leaders who have also been targeted by regulators and accused of committing massive fraud.

Here are 6 company bosses who have also been hunted by the US so far, summarized from Reuters, Monday (6/11/2023):


1. Changpeng Zhao

Photo: Changpeng Zhao, Co-Founder & CEO, Binance. (Bloomberg via Getty Images/Bloomberg)
Changpeng Zhao, Co-Founder & CEO, Binance. (Zed Jameson/Bloomberg via Getty Images)

Zhao and his company Binance were sued by the US Securities and Exchange Commission (SEC), for allegedly running a fraud ring. Apart from that, Binance and Zhao were also accused by the US Commodity Futures Trading Commission (CFTC) last March. The agency accused the existence of an illegal exchange and a fake compliance program.

On the other hand, Binance denied the SEC’s allegations. Regarding the CFTC, Zhao said it was unexpected and disappointing, and said the allegations were related to “incomplete facts.”

2. Do Kwon

Do Kwon, co-founder and chief executive officer of Terraform Labs, in the company's office in Seoul, South Korea, on Thursday, April 14, 2022. Kwon is counting on the oldest cryptocurrency as a backstop for his stablecoin, which some critics like to a ginormous Ponzi scheme.  Photographer: Woohae Cho/Bloomberg via Getty ImagesPhoto: Bloomberg via Getty Images/Bloomberg

The market value of TerraUSD and Luna once reached more than US$40 billion. However, at some point, it finally collapsed and had an impact on a wider fall in token prices.

This is also what caused Do Kwon, the founder of Terraform Lab and developer of the two currencies, to receive various fraud charges in the US. He has also been arrested for forgery of documents in Montenegro.

The SEC has also civilly sued Kwon and the company for billions of dollars in crypto asset securities fraud. Kwon has also denied falsifying documents in a Montenegrin court and Terraform Labs said the SEC could not prove wrongdoing on its part.

3. Alex Mashinsky

Alex Mashinsky, founder and former CEO of bankrupt cryptocurrency lender Celsius Network, arrives for a hearing in Federal Court in New York City, USA, October 3, 2023. (via Reuters)Alex Mashinsky, founder and former CEO of bankrupt cryptocurrency lender Celsius Network, arrives for a hearing in Federal Court in New York City, USA, October 3, 2023. (via Reuters)

Celsius Network filed for bankruptcy in July 2022. Mashinky, the founder and former CEO, denied allegations of fraud and artificially increasing the value of the company’s tokens.

He also received a series of other demands. Starting from the New York state attorney general for fraud, to lawsuits from the SEC, CFTC and Federal Trade Commission (FTC) accusing Celsius of taking risky steps in order to produce promising results.

4. Barry Silbert

Bitcoin investor Barry Silbert speaks at a New York State Department of Financial Services (DFS) virtual currency hearing in the borough of Manhattan, New York, January 28, 2014. (REUTERS/Lucas Jackson/File Photo Acquire Licensing Rights)Photo: Bitcoin investor Barry Silbert speaks at the New York State Department of Financial Services (DFS) virtual currency hearing in the borough of Manhattan, New York, January 28, 2014. (REUTERS/Lucas Jackson/File Photo Acquire Licensing Rights)

He is the boss of the Digital Currency Group group. One of Genesis Global Capital’s subsidiaries filed for bankruptcy last January.

After that, he, Genesis, and DGC received a lawsuit from Attorney General Letitia James. The three are said to have committed customer fraud of more than US$1 billion.

Just like other crypto bosses, Silbert also rejected these accusations. He said he and DCG wanted to help Genesis overcome the problems that occurred.

5. Stephen Erlich

Stephen Ehrlich, CEO and Co-Founder of Voyager Digital Ltd., speaks at the Piper Sandler Global Exchange and FinTech Conference in New York City, USA, June 8, 2022. (REUTERS/Brendan McDermid/File Photo)Photo: Stephen Ehrlich, CEO and Co-Founder of Voyager Digital Ltd., speaks at the Piper Sandler Global Exchange and FinTech Conference in New York City, USA, June 8, 2022. (REUTERS/Brendan McDermid/File Photo)

The CFTC and FTC accused Voyager Digital’s owners of misleading customers about asset security. Including taking excessive risks from this.

However, according to Erlich, he was made a scapegoat for the actions of other people in various companies. According to him, in more than 10 years of his career he has never had a bad record.

6. Justin Sun

Justin SunPhoto: MelfaraTRON/CC0
Justin Sun

Justin Sun and his companies including the Tron Foundation were accused of fraud. The SEC also accused him of inflating trading volumes in crypto tokens and hiding payments to celebrities as a way to promote the tokens. Sun denied the accusations. He termed it as ‘baseless’.

[Gambas:Video CNBC]

Next Article

Expert: Unlike Binance, Indonesian Crypto Investment is Still a Prospect