Crypto billionaires see massive decline in 2022

2022 has been the year of everything crashing for the crypto industry. The latest Forbes report shows that even the richest in the region were hit hard, as the top 17 crypto billionaires lost $116 billion of their net worth.

The losses were caused by the bankruptcy of many crypto companies and the bear market. Due to massive losses, 10 out of 17 crypto billionaires dropped out of the list.

Sam Bankman-Fried (SBF) and other crypto billionaires
Source: Forbes

Net worth of SBF and other FTX-related individuals becomes zero

The most notable dropout is disgraced FTX founder Sam Bankman-Fried. At the start of the year, SBF was valued at around $24 billion, while FTX had just closed a $400 million funding round, valuing it at $32 billion.

But less than a year later, FTX filed for bankruptcy while SBF was worth zero. According to him, he has less than $100,000 in his account, and is unsure how he will pay his lawyers.

At the same time, he is not the only crypto billionaire whose net worth has plummeted to zero over the past year. Others on the list include Gary Wang, CTO of FTX, and Barry Silbert of Digital Currency Group (DCG).

For Barry Silbert, Forbes wrote that the potential bankruptcy of DCG contributed to a significant decline in his net worth. Reports suggest that DCG has a debt of $2 billion and is struggling to raise the fresh funds needed to stay afloat.

According to Forbes, Silbert’s 40% stake in DCG has no value unless his crypto empire survives its current state.

Binance CEO’s Valuation Dropped

Meanwhile, the person who saw his net worth fall the most is Changpeng Zhao, the founder and CEO of Binance. Earlier this year, Forbes estimated his value at $65 billion. But he is now only worth $4.5 billion, which is still enough to make him the wealthiest crypto billionaire.

The decline in his net worth is due to several reasons, including the failure of projects in which Binance has invested, such as Terra Luna and FTX. Binance and CZ also face increased scrutiny as customers and regulators question their financial health.

There are also allegations that the exchange may have facilitated financial crimes. With CZ holding a 70% stake in Binance, the ill health of the exchange has affected his net worth.

Other exchange founders like the Winklevoss twins and Coinbase founders also saw their net worth drop significantly.

Crypto investors who are no longer billionaires include Nikhil Viswanathan and Joe Lau of Alchemy and Devin Finzer and Alex Atala of OpenSea. Others include Michael Saylor and Tim Draper, who have invested heavily in bitcoin.

Jed McCaleb is the only crypto billionaire who hasn’t been greatly affected by market conditions this year. Ripple’s co-founder’s net worth dropped from $2.5 billion to $2.4 billion as he sold most of his crypto holdings.


BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

Source link

Leave a Comment