Which Crypto Figures Could Go to Jail in 2024?

While no one can be sure how the courts will decide the futures of these cryptocurrency leaders, many are looking at the possibility of spending years in federal prison.

Sam Bankman-Fried

The former CEO of cryptocurrency exchange FTX has been in jail since a judge determined he tried to intimidate a witness in his criminal trial, his ex-girlfriend, Caroline Ellison, CEO of Alameda Research. SBF was found guilty of seven felonies in November after a month-long trial and is expected to be sentenced in March 2024.

It’s unclear what sentence, if any, the judge will impose on Bankman-Fried in March, or whether prosecutors intend to hold a second trial on five additional felonies depending on the outcome. However, many experts say the former FTX CEO could face jail time for his role in the fraudulent business practices between the cryptocurrency exchange and Alameda.

Zhao Changpeng

Changpeng Zhao, former CEO of cryptocurrency exchange Binance, pleaded guilty to a felony in the United States as part of a $4.3 billion settlement with federal authorities and the company. He is expected to be sentenced in February 2024 and faces up to 18 months in prison for violating the Bank Secrecy Act.

As of the time of this article’s publication, Zhao Changpeng is largely free to move within the United States on the back of a $175 million bail. Lawyers for the former Binance CEO have filed motions with the court to allow him to travel to Dubai, where his family resides, prior to sentencing, but those requests have been denied.

Alex Mashinsky

U.S. authorities arrested the former CEO of Celsius Network in July, accusing him of misleading investors and defrauding users of billions of dollars. A court order has restricted Mashinsky’s financial transactions and travel, but at the time of publication he remains free on $40 million bail.

Mashinsky's trial is scheduled to begin in September 2024 and will be one of the former CEO's very few public appearances since Celsius filed for bankruptcy in July 2022. Celsius' former chief revenue officer Roni Cohen-Pavon pleaded guilty to four criminal charges in September and is likely to testify at Mashinsky's trial.

Do Kwon

The co-founder of Terraform Labs, whose whereabouts are largely unknown after the platform’s 2022 collapse, has been detained by Montenegro law enforcement since March 2022. His arrest for using forged travel documents is not directly related to Terra’s fraud or other allegations, but extradition requests from the United States and South Korea could see him face prison in one of those countries in 2024.

At the time of publication, it is unclear whether Do Kwon will be extradited, depending on the legal process in Montenegro. If the country approves the U.S. request, Terra’s co-founder could face several years in prison for fraud and similar charges in South Korea.