Which Crypto Titans might be going to prison in 2024?

Individuals who used to known as industrial titans before 2022 are now facing criminal charges in the United States. The result of these cases is unknown, but if convicted, several crypto leaders may face significant sentences in prison.

Changpeng Zhao

 In the US, the former CEO of the cryptocurrency exchange Binance entered a guilty plea to one felony count as part of a $4.3 billion settlement with the firm and federal authorities. He will sentenced in February 2024 and might spend up to eighteen months in prison for breaking the Bank Secrecy Act.CZ had a $175 million bail at the time of publishing, which allowed him to travel throughout the country with relative freedom. The court denied the submissions made by lawyers representing the former CEO of Binance, seeking permission to visit Dubai, where his family resides, before his sentencing.

Sam Bankman-Fried

 The former CEO of the cryptocurrency exchange FTX has been in custody when a judge determined that he attempted to intimidate a witness in his criminal prosecution, Caroline Ellison, his former girlfriend and CEO of Alameda Research. SBF was convicted on seven felony charges in November after a month-long trial, and his sentencing date is set for March 2024. It is unclear what type of punishment the judge will impose in March, or whether prosecutors will ask for a retrial on five more felony counts based on the verdict. However, many analysts anticipate that the former FTX CEO will face prison time for his role in dishonest business operations involving the Bitcoin exchange and Alameda.

Alex Mashinsky

 In July, US authorities arrested the former CEO of Celsius Network on suspicion of scamming investors and consumers out of billions of dollars. Mashinsky’s bank transactions and travel have been prohibited by a court, but he is still free on a $40 million bond at the time of publication. Mashinsky’s trial, scheduled to commence in September 2024, will mark one of the former CEO’s few public appearances since Celsius declared bankruptcy in July 2022. Celsius’ former chief revenue officer, Roni Cohen-Pavon, pleaded guilty to four criminal offenses in September and could testify at Mashinsky’s trial.

Do Kwon

 Since March, Montenegrin authorities have been in charge of the co-founder of Terraform Labs, whose whereabouts have been mostly unknown since the platform collapsed in 2022. There was no direct connection between his arrest for using forged travel documents and any other claims involving Terra. Nevertheless, Kwon may serve time in prison in any country in 2024 depending on the outcome of extradition demands from the United States and his own South Korea.

As of the time of writing, it is unknown if Kwon will deported at all due to ongoing legal actions in Montenegro. If South Korea grants the United States’ request, the co-founder of Terra may face years in prison for crimes connected to fraud and other comparable offenses.