Crypto Kings dethroned as crackdown sweeps away old guard

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The US’s successful prosecution of Binance’s Changpeng Zhao this week removed the top executive at the world’s largest cryptocurrency exchange, a key target in its efforts to clean up a market with a Wild West reputation.

Zhao, also known as CZ, agreed to plead guilty to a criminal charge of failure to protect against money laundering, pay $50mn in penalties and step down as chief executive as part of the deal he struck with US authorities. He is due to be sentenced in February.

His departure underscores the sharp reversal of fortune for the top crypto chiefs who garnered the most hype and attention during the market boom years of 2020 and 2021.

“[CZ’s departure] might mark the end of the ‘cult of personality’ in crypto,” said Michael Safai, co-founder of trading firm Dexterity Capital. “The space still has its heroes and anti-heroes, but it’s also maturing in a way that good projects are backed by deep teams, and not just one person in the spotlight.”

The US Department of Justice has led the clampdown on rogue behaviour, with support from FinCEN, part of the US Treasury department, and federal markets agencies the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Some of the biggest names in crypto are facing time behind bars; others are fighting civil charges. That leaves just a handful not personally facing legal trouble.

Here’s how the best know executives have fared over the past 18 months.