Markets
Cryptocurrency Villains, From Sam Bankman-Fried to Bitcoin Jesus
Photo: Ben McShane (Getty Images)
Binance founder Changpeng Zhao, or “CZ,” was sentenced earlier this year to four months in prison for enabling rampant money laundering on the world’s largest cryptocurrency exchange.
In November 2023, Binance and then-CEO Zhao pleaded guilty to money laundering charges for allowing customers in other countries to conduct transactions in violation of U.S. sanctions. Under the agreement, The company agreed to pay $4.3 billion in fines, and Zhao agreed to pay a $50 million fine and resign from his position.
Richard Teng, Binance’s regional markets director and former Abu Dhabi regulator, has since taken over as CEO of the company. He is making major changes to the company, such as seeking a Head office locationwhich thwarts Binance’s unique position as a decentralized company does not need an office. The cryptocurrency exchange could be signaling to authorities that it is rebuilding after Zhao’s departure.
Do Kwon
Photo: Filip Filipovic (Getty Images)
Do Kwon, co-founder of cryptography company Terraform Labs, was once a king of the crypto worldbut he is now awaiting extradition to the United States or South Korea, where he could be charged.
Terraform Labs collapsed in 2022, which had a significant impact on the cryptocurrency world. Terraform’s stablecoin, TerraUSD (UST), was pegged to the Terra cryptocurrency (LUNA), meaning that $1 UST was still worth $1 USD worth of Luna. However, in May 2022, LUNA’s value plummeted from over $120 per coin to near zero, causing a loss of over $50 billion in UST/LUNA market cap and triggering a crash that $400 billion in value wiped out of the broader crypto market.
The SEC filed a complaint against Terraform and Kwon regarding the deceptive promotion and sale of crypto tokens, specifically the algorithmic stablecoin TerraUSD (UST).
Known was arrested in March 2023 for forging travel documents while trying to leave the southern European country of Montenegro. Earlier this year, he agreed to pay $4.47 billion to settle a civil lawsuit brought by the U.S. Securities and Exchange Commission.