Although crypto assets, an innovative field, have seen a lot of success in recent years, it has become clear that there are also bad people in this market, especially in recent years. Some names, from stock market 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 has deeply affected both investors and the reputation of this sector. Here are some major names that are tarnishing the reputation of cryptocurrencies and the scandals they have caused in the crypto market.

Sam Bankman-Fried’s empire collapsed within days.

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

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 damaged and it struggled to meet its obligations to users, resulting in large volumes resulting in loss of user funds.

After the bankruptcy of FTX, co-founder and CEO of the exchange Sam Bankman-Fried; The company faced allegations of fraud, illegal market manipulation and mismanagement of user funds.

the detention of SBF in this innovative industry stricter regulations and it was a turning point that emphasized 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, started experiencing problems. The price of this asset, which as a stablecoin should be equal to 1 US dollar started to decline. Price from UST during the following week It dropped to 10 cents.

Luna, another cryptocurrency from Terraform Labs, reached its all-time high in the same time frame. It fell from $119.51 to almost zero. This crash wiped out nearly $45 billion in market value in one 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. Interpol subsequently issued a red notice for Kwon’s arrest at the request of Korean authorities.

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

Celsius Network’s CEO could not continue offering high interest rates.

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

Alex Mashinsky, founder and former CEO of Celsius Network, in July 2023 He was arrested on charges 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 worth 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 Ozer, 11,196 years, 10 months and 15 days in prison and was fined 135 million Turkish liras (approximately $5 million).

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

Tornado Cash started 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 mixing service Tornado Cash, which laundered more than $1 billion in funds and hundreds of millions of dollars through their platform. The North Korean cybercriminal organization Lazarus Group He claims to have been acquitted.

Roman Storm’s arrest is especially important for crypto assets in the US. How necessary are legal sanctions? emphasizes.

Besides the five prominent executives with shady reputations above, other names have also been 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 those on this list.

Cryptocurrencies are still in the spotlight worldwide and have the potential to revolutionize the financial sector. But besides the success of this innovative field, there are also some names like the ones above They have a shady reputation.

At this point everyone knows what to do before a new evil figure emerges. Be careful when buying cryptocurrency and which exchange service you use. The reality of what is needed emerges. This again brings up 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.