Former FTX CEO, Sam Bankman-Fried (L) and Zhao Changpeng (R), founder and chief executive officer of Binance, featured in a combination image.
Getty Images | Reuters
Following a tough 18 months marked by bankruptcies, company failures, and criminal trials, the crypto market is beginning to recover some of its former glory.
Bitcoin has surged by more than 150% this year. Meanwhile, Solana’s value has nearly increased tenfold in the last 12 months, and bitcoin miner Marathon Digital has also seen a significant rise. Crypto-pegged stocks like Coinbase, MicroStrategy, and the Grayscale Bitcoin Trust have increased in value by over 300% year-to-date.
Despite the price increases, the industry’s reputation has struggled to bounce back after some high-profile figures were found guilty of crimes related to their multibillion-dollar crypto empires.
For years, Binance’s Changpeng Zhao and FTX’s Sam Bankman-Fried promoted the power of decentralized digital currencies. They were bitcoin billionaires who ran their own global cryptocurrency exchanges and advocated for a new, tech-powered world order. However, they ultimately helped fuel the case that the industry was filled with criminals looking to exploit new technology for age-old crimes.
Even as token prices soared to all-time highs in Oct. 2021, some prominent figures in business and politics expressed their doubts about the crypto market.
JPMorgan Chase CEO Jamie Dimon called bitcoin “worthless,” and Microsoft co-founder Bill Gates expressed skepticism about cryptocurrencies. Warren Buffett also criticized bitcoin, and Senator Elizabeth Warren has been a vocal critic of the industry.
Instead of revolutionizing the financial world, Zhao and Bankman-Fried were found guilty of a range of charges including fraud and money laundering. From being the biggest names in crypto, they now face the threat of jail time.
Bankman-Fried, 31, could potentially face a life sentence after being convicted of seven criminal counts. Shortly after his conviction, Zhao pleaded guilty to criminal charges and resigned as Binance’s CEO as part of a $4.3 billion settlement with the Department of Justice.
Their crimes may have varied, but both crypto executives went from respected industry leaders to convicted frauds in a mere 12 months.
