It was a bad year for crypto. It was even worse for these guys

From the brash but supposedly visionary CEO to the superstar trader who never seems to sleep, crypto, like other high-flying industries, is filled with hotshots.

But when millions—or billions—of dollars are on the line, a shining star can burn out as quickly as it emerged.

Here are five prominent falls from grace that shook the crypto world in 2022.

SBF

Once hailed as the “white knight” of crypto, the former FTX CEO is now on house arrest at his parents house in Palo Alto, California after being released on a whopping $250 million bond following his extradition from The Bahamas.

After some time at the Wall Street trading firm Jane Street, Sam Bankman-Fried and his cofounders created the crypto trading firm Alameda Research. SBF then founded FTX, a cryptocurrency exchange that rose to become one of the world’s largest.

But SBF, known as one of the biggest advocates of effective altruism, which promotes doing the most good for the most people, perhaps was not as benevolent as he seemed. In December, Bankman-Fried was charged with eight counts including securities fraud, wire fraud, and several counts of conspiracy that involve money laundering and campaign finance violations.

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 liken to a ginormous Ponzi scheme. Photographer: Woohae Cho/Bloomberg via Getty Images

Brash, trash-talking CEOs aren’t uncommon in tech. But most of them also aren’t responsible for $40 billion meltdowns.

The South Korean founder of Terraform Labs, Do Kwon, is now wanted by Interpol and South Korean authorities. Kwon created the algorithmic stablecoin TerraUSD, which was hailed by some as an essential tool for the growth of the crypto industry.

The stablecoin kept its 1-to-1 peg with the U.S. dollar through a delicate balancing act with another Terraform Labs token, Luna. The value of Luna rose to $40 billion before what was effectively a bank…

..

Read More

About The Author

Related posts