Cryptocurrency crash causes massive damage among CEOs

Cryptocurrency crash causes massive damage among CEOs

The damage caused by the crypto market crash will not be measurable for long.

Cryptocurrency prices have collapsed from their November highs, eliminating nearly $2.4 trillion, according to data firm CoinGecko.

Bitcoin, the most popular cryptocurrency, has lost nearly three quarters (73%) of its value since hitting $69,077.44 on November 10. Similarly, ether, the second most highly valued cryptocurrency in the market, is down 74% from its high of $4,878.26. .

The list of victims of this catastrophe is long: many retail investors have lost much or most of their savings. Notable crypto companies around the world have filed for bankruptcy, while the big names in the business community have booked hundreds of millions of dollars in impairment fees.

Departure wave

Thousands of jobs have been canceled or frozen in this sector. The cryptocurrency space, which requires clear regulation, is now visible on the authoritiesโ€™ radar screen. They see the collapse of the cryptocurrency as a sign that the emerging industry threatens the stability of the traditional financial system.

โ€œScams, fraud, and theft in the digital asset market are on the rise: According to FBI statistics, reported financial losses from digital asset fraud were nearly 600% higher in 2021 compared to the previous year,โ€ the Biden administration said in its first speech. An ever-present comprehensive framework for regulating the crypto industry.

However, another group of crypto-crash victims has gone unnoticed: CEOs and founders, who are often the same in crypto.

A number of major crypto players were established after 2009, when Bitcoin was created. They often have similar backgrounds: they were into technology and were among the first to jump on the cryptocurrency bandwagon.

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Since the summer, the founding CEOs have relinquished their duties as CEOs.

The latest to leave the operational reins is Jesse Powell, co-founder of cryptocurrency exchange Kraken. Powell will become Chairman of the Board and will be succeeded by Dave Ripley, who is currently the Director of Operations.

“We are grateful for Jesse’s leadership, as well as his dedication to crypto values โ€‹โ€‹and the Kraken mission over the past 11 years,” Kraken said in a statement. “We are thrilled to have Dave as our new CEO as we begin our second decade of growth and global adoption.”

The platform added that a new era in its young history was opening:

โ€œOver the past 11 years, Kraken has evolved from a Bitcoin exchange into a diversified cryptocurrency platform. Our products include a wide range of trading tools, educational resources, industry-leading staking services, futures trading, and an OTC desk. Kraken will soon launch as its own. [nonfungible-tokens] the shop.”

Saylor et al

Prior to Powell, billionaire Michael Saylor, one of the most prominent Bitcoin evangelists, resigned from his position as CEO of software company MicroStrategy. (MSTR) In early August.

Saylor, who co-founded the company in 1989, has become chairman of the board and will focus more specifically on bitcoin, whose price drop prompted MicroStrategy to post a $2 billion drop fee in the second quarter.

The CEO’s moves continued with the departure of Michael Morrow from crypto brokerage Genesis, and the resignation of Alameda Research co-CEO Sam Trabucco.

CEOs of cryptocurrency companies are also increasingly under fire from small investors. They include Alex Mashinsky, the founding CEO of bankrupt crypto lender Celsius Network, as well as Stephen Ehrlich, CEO of bankrupt exchange platform Voyager Digital.

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Celsius and Voyager have filed for Chapter 11 bankruptcy over their exposure to crypto hedge fund Three Arrows Capital, or 3AC, which was forced into liquidation after losing hundreds of millions of dollars in the collapse of crypto-sisters Luna and UST in May.

Ehrlich was named in a lawsuit filed in August by investors who lost money in the bankruptcy of Voyager Digital. These investors are claiming that he and billionaire Mark Cuban.”[induced] them to invest in the deceptive Voyager platform.โ€

Mashinsky has been criticized especially in crypto forums on social networks such as Reddit.

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