It’s been a bad year for crypto. It’s even worse for these guys

From the rude but supposedly visionary CEO to the superstar trader who seems to never sleep, cryptocurrency, like other high-flying industries, is filled with attractions.

But when millions—or billions—of dollars are on the line, a bright star can fade as quickly as it appears.

Here are five standout falls that rocked the crypto world in 2022.


Once praised as Cryptocurrency “white knight”Former FTX CEO is now house arrest at his parents’ house in Palo Alto, california after being released on $250 million bond after being extradited from the Bahamas.

After a stint at the Wall Street trading firm Jane Street, Sam Bankman-Fried and his co-founders founded the cryptocurrency trading company Alameda Research. SBF later founded FTX, a cryptocurrency exchange that has risen to become one of the largest exchanges in the world.

But the SBF, known as one of the biggest supporters of effective altruism, encouraged to do what’s best for most people, perhaps not as benevolent as he thought. In December, Bankman-Fried was charged with eight counts including securities fraud, wire transfer fraud, and some conspiracy related to money laundering and campaign finance violations.

Do Kwon

Woohae Cho—Bloomberg/Getty Image

Rude, trash-talking CEOs are not uncommon in the tech world. But most of them are also not responsible for 40 billion dollar crisis.

Korean founder of Terraform Labs, Do Kwoncurrently wanted by interpolate and the Korean government. Kwon created the algorithmic stablecoin TerraUSD, hailed by some as an essential tool for the growth of the crypto industry.

Stablecoin has kept 1:1 ratio with US dollar adopted a delicate balancing act with another Terraform Labs token, Luna. The Value of Luna increased to 40 billion USD before an effective banking race collapsed both cryptocurrencies.

Kwon is so confident—or so delusional—that he shakes off any criticism of TerraUSD and Luna, saying, “I don’t argue about the poor.” Although sometimes still online activity-he appeared recently on crypto influencer Cobie’s live streamed podcast UpOnly—His real-life whereabouts are unknown. Korean news agency Yonhap reported on December 12 that he could be in Serbia.

Su Zhu and Kyle Davies

The founders of Three Arrows Capital, Su Zhu and Kyle Davies, were the talented kid investors of the crypto world—until they weren’t.

Through a series of speculative investments made with borrowed money, the pair have created one of the most successful crypto hedge funds. But after a misplaced bet on Grayscale Bitcoin Trust and a $200 million investment in Luna, which subsequently collapsed, the company went bankrupt.

Although crypto hedge funds claims to have no “outside investors,” Its financial boom led to billions of dollars in claims from creditors.

The crypto giants were once the epitome of the new wave of money coming from the crypto industry, and they sought to prove it by purchasing a $50 million superyacht named Lots of Wowwhich have to resell after Zhu and Davies unable to make their final payment.

Alex Mashinsky

Bruno de Carvalho—SOPA Images/Sipa USA/Reuters

Former Celsius CEO Alex Mashinsky ran the crypto bank while it advertised every year Profit up to 18% for customers opening a savings account. It appears too good to be true. And it was.

poison filed for bankruptcy in July after becoming one of the first major crypto companies to freeze customer withdrawals. Mashinsky was reportedly in charge of the company’s investment strategy and made a series of bad bets, according to Reutersincluding over-leverage and an investment of around $125 million in Grayscale Bitcoin Trust, which is down nearly 80% this year.

Last year, the company was proud 1 million customers and approximately $20 billion in assets under management. In its bankruptcy filing, the company claimed that it owed customers more than $4.7 billion.

It’s unclear if Celsius customers will get their investment back, but for some, the full amount they save. Months after the company filed for bankruptcy, Mashinsky resigns as CEOstated that he had “become increasingly distracted.”

Stephen Ehrlich

Brendan McDermid—Reuters

At its peak, Stephen Ehrlich’s Digital Travels advertised double-digit yields with the help of celebrity advocates like Mark Cuba.

Ehrlich and company got into trouble earlier this year when crypto hedge fund Three Arrows Capital failed to pay more than 665 million USD it owes the company.

After building a large volume 3.5 million customers At its peak, Voyager Digital filed for bankruptcy in July.

The company almost sold its assets to FTX for about 1.4 billion USD, but after the second one exploded last month, Du went off to find a new buyer. For now, it looks like the US branch of Binance will buy Voyager’s assets for about 1 billion USD.

However, Ehrlich may end up doing better than most of Travel’s clients after bankruptcy. He reported earn millions Voyager’s stock sale during its peak in February and March 2021.

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