As the crypto industry continues to mature, the impact of market volatility and regulatory pressures is becoming more evident.
According to a recent report by Forbes magazine, crypto billionaires worldwide lost approximately $110 billion in 2022, with some experiencing losses of up to 75% of their fortune.
This was attributed to fraud allegations, government lawsuits, and falling asset values that have taken a toll on the industry’s fragile state.
Forbes had previously identified 19 crypto billionaires with a combined fortune of $140 billion, but as of March 10, 2023, the same group’s net worth is less than $30 billion.
Ten participants in the list are no longer billionaires, with the collapse of Sam Bankman-Fried’s FTX exchange being one of the biggest failures of the year.
In November 2022, FTX filed for bankruptcy, and the founder faced charges of fraud and other financial offenses, although he pleaded not guilty.
Despite the challenges, Changpeng Zhao, the founder and CEO of Binance, remains the richest person in the crypto industry, with Forbes estimating his fortune at $10.5 billion.
However, the US Commodity Futures Trading Commission (CFTC) recently accused Binance of violating federal laws on the regulation of commodity markets, which may have implications for the exchange going forward.
Brian Armstrong, the CEO and co-founder of Coinbase, is currently worth $2.2 billion, down from $6.6 billion a year ago.
The US Securities and Exchange Commission (SEC) has also warned Coinbase that it could face penalties for selling unregistered securities.
Overall, the crypto industry lost approximately $700 billion in market value in the 12 months leading up to March 2023, according to CoinMarketCap.