Arslan Butt
Source: Twitter
The year 2022 has been difficult for the cryptocurrency market and crypto billionaires. Because of the market’s trillion-dollar meltdown, it was a difficult financial year. One estimate claims that crypto billionaires lost 116 billion USD this year. Investors who were let down have filed several lawsuits to recoup their losses.
Crypto Moguls Lost $116 Billion in 2022: pic.twitter.com/HiCJp3hAgE
— Jungle Inc (@jungleincxrp) December 25, 2022
In 2022, Crypto Billionaires Will Have Lost
The loss reflects the aggregate personal equity of 17 community members, more than 15 of whom have lost more than half of their wealth since March. Furthermore, ten names were removed from the list of cryptocurrency billionaires.
One of the massive losses was attributed to Changpeng Zhao (CZ), the founder and CEO of Binance. Notably, CZ was the crypto billionaire who experienced the greatest net loss, with an $82 billion drop in net worth.
#Binance founder and CEO Changpeng Zhao was the crypto billionaire who lost the most money following the crypto crisis, with a net worth drop amounting to 82 billion U.S. dollars. Zhao was followed by #FTX founder and CEO Sam Bankman-Fried, who lost a reported 23 billion dollars. pic.twitter.com/CIqXmP7AaU
— Statista (@StatistaCharts) December 14, 2022
Sam Bankman-Fried, the founder and former CEO of FTX, comes after Zhao. SBF reportedly lost $23 billion before his arrest in late 2022 on conspiracy and fraud charges.
Woes of the crypto bros – These 5 billionaires lost the most money in 2022 – At no 2 is FTX’s founder @SBF_FTX -Fried who lost a mind-boggling $23 billion, so who is on the top of the list?-https://t.co/XAhXQCEYWl pic.twitter.com/mOrwl9FxwJ
— Luxurylaunches (@luxurylaunches) December 5, 2022
Coinbase CEO Brian Armstrong is estimated to be worth $1.5 billion, down from $6 billion in March. Chris Larsen, a Ripple co-founder, saw his wealth fall from $4.3 billion to $2.1 billion.
Furthermore, Cameron and Tyler Winklevoss of Gemini saw their wealth fall from $4 billion to $1.1 billion.
According to the latest estimates from Forbes, the net worth of Binance CEO Changpeng Zhao (CZ) in December has dropped by 93.07% from March to $4.5 billion. #Coinbase CEO Brian Armstrong's net worth fell 75% to $1.5 billion.
— Samantha Fox (@Samanth88660362) December 26, 2022
Furthermore, the assets of FTX co-founder Gary Wang were $5.9 billion in March and $0 in December. The contagious flood caused by FTX’s fall cost Barry Silbert, the founder and CEO of Digital Currency Group, his $3.2 billion fortune.
Former billionaires include Nickel Viswanathan and Joseph Lay from the cryptocurrency software company Alchemy, Devin Finzer and Alex Atallah from OpenSea, Fred Ehrsam from Coinbase, Michael Saylor, the creator of MicroStrategy, and Tim Draper, a venture capitalist.
Jed McCaleb is the only crypto billionaire who has been unaffected by market conditions this year. Ripple’s co-net founder’s worth has dropped from $2.5 billion to $2.4 billion. It is due to the sale of the majority of his crypto assets.
Why Cryptocurrency Billionaires Lost That Much?
Many events occurred in the cryptocurrency industry in 2022. This year, many well-known cryptocurrency exchanges failed and collapsed. The Terra sisters, TerraUSD, went bankrupt first. The hedge fund Three Arrows then declared bankruptcy in July.
Companies that lend money at interest have declared bankruptcy, including Voyager Digital, Celsius, and BlockFi. Furthermore, the FTX debacle was by far the worst.
BlockFi Is Latest To Go Bankrupt in Aftermath of FTX’s Meltdown
New York November 28 2022: BlockFi Inc. filed for bankruptcy, the latest crypto firm to collapse in the wake of crypto exchange FTX’s rapid downfall.BlockFi said https://t.co/EIgC9WJJL8 pic.twitter.com/QbNQ1a5Lo6
— The Augaf (@theaugaf) November 28, 2022
Furthermore, Bitcoin, the most valuable cryptocurrency and market leader, has fallen by 65% from its all-time high of $69,000 in November 2021. Digital assets have lost a total of $2 trillion in market value, and investors are looking for more promising markets in the meantime.
Bitcoin – the largest token by market value – plunged more than 60%, leading a rout in digital assets that erased some $2 trillion in total market value from the highs reached in November 2021.
What else didn't go as planned in 2022? We mapped it out ➡️ https://t.co/T4VNlHDJXK pic.twitter.com/40MsIuDABo
— Bloomberg Crypto (@crypto) December 24, 2022
As a result, many crypto billionaires were pushed, and they lost a lot of money. However, the FTX issue has harmed investor confidence and caused a liquidity crisis throughout the sector, casting doubt on a quick end to the cryptocurrency bear market. Hence, many experts believe the market will continue to fall until 2023.
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This article was written for Business 2 Community by Arslan Butt.
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