Binance, Coinbase CEOs See Personal Fortunes Plummet By $1.7B After SEC Crackdown

Binance CEO Changpeng Zhao and Coinbase COIN CEO Brian Armstrong have lost a good chunk of their personal wealth following recent accusations by the  Securities and Exchange Commission (SEC) of violating securities regulations.

What Happened: According to Bloomberg's Billionaires' Index, Zhao’s net worth declined by $1.4 billion to $26 billion after the SEC filed a lawsuit against Binance on June 5. Armstrong's net worth decreased by $361 million reaching $2.2 billion after Coinbase was sued by the SEC on June 6.

This represents a combined personal loss of $1.761 billion for the two business executives.

Bloomberg also highlighted that both CEOs had seen their personal wealth increase earlier this year, as Zhao’s net worth rose by 117%, and Armstrong’s rose by 61%.

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Why It Matters:  Zhao's net worth is based on his private holdings in Binance Holdings and Binance.US, which are not publicly disclosed.

The SEC's allegations against Binance and Coinbase have caused a bullish momentum in the wider crypto market.

Bitcoin BTC/USD, the world's biggest cryptocurrency by market capitalization broke the $27,000 mark and continues to trend upward, while Ethereum ETH/USD and Dogecoin DOGE/USD rose too.

Read Next: Bitcoin Regains $27K, Ethereum, Dogecoin Soar Despite SEC Lawsuits Against Binance, Coinbase: Analyst Foresees $42K Move For Apex Crypto