Managers Who Tarnished the Name of Cryptocurrencies

Although crypto assets, which are an innovative field, have achieved much success in recent years, it has become clear that there are also bad people in this market, especially in the last few years. Some names, from stock exchange CEOs to cryptocurrency project founders, have become popular in recent years. They gained a shady reputation and were arrested.

What’s happening in the cryptocurrency world scandals and arrests, It deeply affected both investors and the reputation of this sector. Here are some important names that tarnish the reputation of cryptocurrencies and the scandals they caused to the crypto market.

Sam Bankman-Fried’s empire collapsed within days.

crypto world, FTX went bankrupt in just a few days was destroyed by his statement. FTX’s problems arose as a result of a series of internal and external challenges, culminating in the stock market’s closure.

One of the main reasons for this is that the exchange’s user assets are transferred to its own investment firm. He sent it to Alameda Research. As a result, trust in FTX was quickly shaken and it struggled to fulfill its obligations to users, resulting in large amounts of resulting in loss of user funds.

Following FTX’s bankruptcy, co-founder and CEO of the exchange Sam Bankman-Fried; It faced accusations of fraud, illegal market manipulation and mismanagement of user funds.

SBF’s detention in this innovative industry tighter regulations and it was a watershed moment that highlighted the need for control.

Terra’s silent leader, Do Kwon, escaped for months.

On May 9, 2022, the stablecoin called UST, founded by Do Kwon, began to experience problems. The price of this asset, which should be equal to 1 US dollar as a stablecoin started to decline. Price of UST during the next week It dropped to 10 cents.

Luna, another cryptocurrency of Terraform Labs, reached its all-time high in the same time frame. It fell from $119.51 to almost zero. This crash wiped out almost $45 billion in market value in a week.

South Korea in September 2022 Arrest warrant issued for Do Kwon and five colleaguesbut Do Kwon had already left with his family. He fled to Singapore. Thereupon, Interpol issued a red notice for Kwon’s arrest upon the request of Korean authorities.

On March 23, 2023, Do Kwon tried to travel to Dubai with fake Costa Rican documents. He was arrested at Podgorica Airport in Montenegro.

Celsius Network CEO couldn’t keep offering high interest rates.

Celsius Network stood out as a crypto bank promising high interest rates, but It collapsed last year.

Alex Mashinsky, founder and former CEO of Celsius Network, in July 2023 He was arrested on allegations of misleading customers and lying about his company’s business model.

Federal prosecutors alleged that Mashinsky led customers to believe that Celsius was a safe place, when in fact it was fraught with risks. Additionally, US money market regulators He was sued by the SEC and CFTC.

Faruk Fatih Özer was sentenced to thousands of years in prison.

CEO of Thodex cryptocurrency exchange Faruk Fatih Özer, events in 2021 As a result, it was at the center of one of Turkey’s biggest cryptocurrency scandals. The stock market suddenly closed with billions of dollars of cryptocurrencies.

Faruk Fatih Özer mysteriously disappeared. However, his escape was short-lived. After Interpol issued a red notice He was captured in Vlora, Albania on August 30, 2022 and extradited to Turkey.

Faruk Fatih Özer, 11,196 years, 10 months and 15 days in prison and received a judicial fine of 135 million Turkish lira (approximately 5 million dollars).

In the quest for anonymity, one of the Tornado Cash founders was arrested.

Tornado Cash started out as an anonymity-focused cryptocurrency service, but that caught the attention of US regulators. Tornado Cash developers Roman Storm and Roman Semenov, on charges of money laundering and violation of legal sanctions punished. US Department of Justice, Arrested Roman Storm on August 23, 2023.

The U.S. Department of Justice alleges that Roman Storm and Roman Semenov allegedly created, operated and promoted the cryptocurrency mixer service called Tornado Cash, which laundered over $1 billion in money and hundreds of millions of dollars through their platform. North Korean cybercriminal organization Lazarus Group He claims to have been exonerated.

The arrest of Roman Storm is especially important for crypto assets in the USA. How necessary legal sanctions are? emphasizes.

Apart from the 5 prominent executives with dark reputations above, there are also other names arrested in the cryptocurrency market. However, the news of the arrest of these CEOs and managers shook the cryptocurrency market. It didn’t affect me as deeply as the ones on this list.

Cryptocurrencies are still a huge focus around the world and have the potential to revolutionize the financial industry. But along with the success of this innovative field, some names like those above They have a dark reputation.

At this point, everyone knows what to do before a new evil figure emerges. Be careful about buying cryptocurrency and which exchange service you use. The reality of what is necessary comes to the fore. This brings up again a saying that has been found in the crypto asset market for years: “Not your keys, not your crypto.” This means “Not your account, not your cryptocurrencies.” in the form.