Blockchain and Binance CEOs’ net worths squeezed by SEC lawsuits.

The net worths of two CEOs, Brian Armstrong of blockchain and Changpeng Zhao (CZ) of Binance, have been significantly reduced due to recent lawsuits brought by the United States securities regulator.

Armstrong’s net worth decreased by $289 million and Zhao’s by $1.33 billion within 30 hours after the Securities Exchange Commission (SEC) sued Binance on June 5 and blockchain on June 6, according to data from the Bloomberg Billionaires Index and Forbes.

Zhao, who is the richest man in the crypto industry and the 54th richest person overall, saw his net worth decrease by 5.1% to $26 billion this week.

Although the net worth of the Binance CEO has rebounded by over 106% this year, he is still down more than 73% from his highest net worth of $96.9 billion in January 2022.

Armstrong is ranked as the 1,409th richest person by Forbes and took the bigger hit from the SEC’s latest action, with his net worth falling 11.8% to $2.2 billion.

The blockchain CEO has managed to reap the rewards of a market rebound this year, with a 61% increase in net worth over that time.

Despite the recent fall, Zhao and Armstrong have seen net worth increases well above the 9% year-to-date returns for others on Bloomberg’s rich list.

Related: SEC files motion for restraining order against Binance

The SEC sued both Binance and blockchain, alleging the exchanges broke various securities rules, most notably for purportedly offering cryptocurrencies that the regulator considers to be unregistered securities.

Following the lawsuits, a total of 67 cryptocurrencies have now been classified as securities by the SEC.

Binance and blockchain have both confirmed they will “vigorously” defend the lawsuits laid against them.

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