Nearly $2 billion of their combined wealth has been wiped away after the Securities and Exchange Commission, which claims responsibility for regulating virtually all of the 25,000 digital tokens in existence, filed lawsuits alleging both crypto exchanges operated unlawfully.

According to Bloomberg Billionaires Index, Coinbase CEO Armstrong saw his wealth melt by $361 million to $2.2 billion as shares in the publicly traded company sank by 12% on Tuesday. 

This loss is paltry once compared to the $1.4 billion plunge suffered by Zhao, the richest of all crypto bros and known more colloquially as CZ.

His wealth shrank to $26 billion, in part after the SEC chair Gary Gensler singled out the founder of the privately held Binance, the worlds largest crypto trading platform, for an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.

Their wealth had been climbing since the start of this year as the price of Bitcoin and other digital assets rebounded. Zhaos fortune soared by 117% before this weeks drop, while Armstrongs jumped by 61%.

By comparison, the other billionaires on Bloombergs wealth index were up a combined 9%.

Unlike the anger that erupted when Sam Bankman-Frieds FTX went bankrupt amid an apparent web of lies and fraud, the crypto community has largely rallied around Zhao, Armstrong and their two exchanges.

Although they are centralized like much of traditional finance, or TradFi as its pejoratively known, Binance and Coinbase play important roles in facilitating the broader adoption of crypto. 

That solidarity stems in part from suspicions this weeks coordinated attack was politically motivated with the purpose of maintaining the dominant role of conventional central bank-backed currencies in all commerce.

Charles Hoskinson, the creator of the Cardano blockchain and its native ADA coin that is the worlds seventh most valuable cryptocurrency, pitched the SECs move against the digital ecosystem in almost Manichean terms.

Regarding the SEC complaint against us today, were proud to represent the industry in court to finally get some clarity around crypto rules.

Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to come in and

Brian Armstrong (@brian_armstrong) June 6, 2023

In remarks he posted to social media on Tuesday, he went so far as to liken the industrys common struggle for what he termed economic freedom from government fiat to the time when his Norwegian ancestors fought against the Nazis. 

We will see a day where, when you have money in your wallet, you own thatnot an IOU from an organization that at any time can take it from you for no particular reason, or you violated a particular policy or agenda, said Hoskinson. The reality is were facing the entire global order.

Gensler helped fuel the communitys suspicions on Tuesday when he argued that crypto serves no real purpose since traditional finance such as banks and stock exchanges already execute payments virtually.

Look, we dont need more digital currency. We already have digital currency: its called the U.S. dollar, he said in an interview with CNBC. Its all digital right nowthe investing worldso what is the real underlying value of these tokens?

Appearing on the same broadcaster the following day, Armstrong said he was disappointed by the SECs actions, arguing they were not good for America.

We dont need the government picking and choosing our technology winners. Lets let the market decide, he said. 

Susan Louise Lorincz, 58, who is white, was arrested on charges of manslaughter with a firearm, culpable negligence, battery and two counts of assault in the death of Ajike Owens, a Black mother of four, Sheriff Billy Woods said in a statement.

Authorities came under pressure Tuesday to arrest and charge the woman who fired through her front her door and killed Owens in a case that has put Floridas divisive stand your ground law back into the spotlight.

In a video posted on Facebook late Tuesday night, the sheriff said this was not a stand your ground case but simply a killing.

Now many of you were struggling to understand why there was not an immediate arrest, the sheriff said. The laws here in the state of Florida are clear. Now I may not like them. I may not agree with them. But however, those laws I will follow.

The video shared by the sheriffs office shows two detectives and a deputy leading down a hallway with her hands behind her back.

Jail records show she was booked, but did not list a lawyer who could speak on her behalf. It wasnt immediately clear when she would make her first court appearance.

Deputies responding to a trespassing call Friday night found Owens with gunshot wounds.

The neighborhood of single-story duplexes and quadruplexes is in the rolling hills outside of Ocala. The area is known for its thoroughbred horse farms, which surround the working-class neighborhood.

Lorincz told investigators that she acted in self-defense, and that Owens, 35, had been trying to break down her door before she fired the gun, the sheriff said. She also told them that Owens had come after her in the past, and had previously attacked her.

Sheriff Woods said the investigation, which included eyewitness statements, established that Lorinczs actions were not justifiable under Florida law.

On Tuesday, about three dozen protesters, most of them Black, gathered outside the Marion County Judicial Center, demanding the shooters arrest. The chief prosecutor, State Attorney William Gladson, met with the protesters and urged patience while the investigation continues.

If we are going to make a case we need as much time and as much evidence as possible, Gladson said. I dont want to compromise any criminal investigation.

Earlier the sheriff had said that because of the stand your ground law he couldnt make an arrest unless he could prove the shooter did not act in self-defense.

In the neighborhood a stuffed teddy bear and bouquets marked the area near where Owens was shot. Nearby, children were riding bikes and scooters, and playing basketball.

Some protesters gathered downtown, chanting No justice, no peace and A.J. A.J. A.J using Owens nickname, on Tuesday afternoon.

The sheriff said Owens was shot moments after going to Lorinczs apartment after she yelled had at Owens children as they played in a grassy area outside nearby. He also said Lorincz had thrown a pair of skates that hit one of the children.

Before the confrontation, Lorincz had been yelling racial slurs at the children, according to a statement from civil rights attorney Ben Crump, who is representing Owens family. He also represented Trayvon Martins family in 2012, when the Black teenager was killed in a case that drew worldwide attention to the states stand your ground law.

The sheriffs office hasnt confirmed there were slurs uttered or said whether race was a factor in the shooting.

In a statement late Tuesday, Crump said while Owens family is relieved that an arrest has been made, they remain concerned it has taken this long because archaic laws like Stand Your Ground exist

Lauren Smith, 40, lives across the street from where the shooting happened. She was on her porch that day and saw one of Owens young sons pacing, and yelling, They shot my mama, they shot my mama.

She ran toward the house, and started chest compressions until a rescue crew arrived. She said there wasnt an altercation and that Owens didnt have a weapon.

She was angry all the time that the children were playing out there, Smith said. She would say nasty things to them. Just nasty. Smith, who is white, described the neighborhood is family friendly.

The sheriff said that since January 2021, deputies responded at least a half-dozen calls in connection with what police described as feuding between Owens and Lorincz.

There was a lot of aggressiveness from both of them, back and forth, the sheriff said Lorincz told investigators. Whether it be banging on the doors, banging on the walls and threats being made. And then at that moment is when Ms. Owens was shot through the door.

Im absolutely heartbroken, Angela Ferrell-Zabala, executive director of Moms Demand Action for Gun Sense in America, told The Associated Press. She described the fatal shooting as so senseless.

Weve seen this again and again across this country, she said, adding that its really because of lax gun laws and a culture of shoot first.

Ferrell-Zabala said stand your ground cases are deemed justifiable five times more frequently when a white shooter kills a Black victim.

In 2017, Florida lawmakers shifted the burden of proof from a person claiming self-defense to prosecutors. Before the change in law, prosecutors could charge someone with a shooting, and then defense attorneys would have to present an affirmative defense for why their client shouldnt be convicted. Now authorities must rule out self-defense before bringing charges.

Stand your ground and castle doctrine cases which allow residents to defend themselves either by law or court precedent when threatened have sparked outrage amid a spate of shootings across the country.

In April, 84-year-old Andrew Lester, a white man, shot and injured 16-year-old Ralph Yarl, a Black teenager who rang his doorbell in Kansas City. Yarl mistakenly went to the wrong house to pick up his younger siblings. Lester faces criminal charges. At trial, he may argue that he thought someone was trying to break into his house.

Missouri and Florida are among about 30 states that have stand your ground laws.

The most well-known examples of the stand your ground argument came up in the trial of George Zimmerman, who fatally shot Trayvon Martin in 2012.

At a vigil Monday in Ocala, Owens mother, Pamela Dias, said that she was seeking justice for her daughter and her grandchildren.

My daughter, my grandchildrens mother, was shot and killed with her 9-year-old son standing next to her, Dias said. She had no weapon. She posed no imminent threat to anyone.

___

Frisaro reported from Fort Lauderdale.

Speaking at a press conference Wednesday, the worlds No. 3-ranked player made it clear hes still not a fan of the newer company.

Its not LIV, he said. I still hate LIV, I hate them. I hope it goes away and I fully expect that it does.

However, he said, he did expect the deal would be good for the sport in the long run, adding: Ultimately when I look at the bigger picture, 10 years down the line, this is going to be good for the game of professional golf.

McIlroy is hardly the only PGA star who is conflicted over the deal. Tuesdays surprise announcement that the PGA and LIV would merge into a single golf behemoth caught a lot of the golf worlds top stars off guard, with many saying they had no idea it was coming.

Included among those was Tiger Woods, according to ESPN. The sports biggest name and winner of major tournaments had very publicly rejected a $1.2 billion offer from LIV last year to remain with the PGA.

When I first saw it, I thought it was a joke, Scott Stallings, three-time PGA Tour winner, told ESPN about the merger.  

Because so many players turned down big offers from LIV to remain loyal to the PGA, there is a fair amount of animosity that seems to be bubbling. Stallings, when asked what his first question would be to PGA Tour Commissioner Jay Monahan, replied how many other sides of his mouth can he speak out of?

Other players who were left in the dark before the announcement included Collin Morikawa and Sahith Theegala.

I love finding out morning news on Twitter

Collin Morikawa (@collin_morikawa) June 6, 2023

Reaction from Sahith Theegala. Players just in absolute shock. pic.twitter.com/E8rCLvOtCi

Gabby Herzig (@GabbyHerzig) June 6, 2023

McIlroy, Wednesday morning, added to the pile-on, not only reiterating his animosity toward LIV, but towards the players who defected to it.

There still has to be consequences to actions, he said at a press conference. The people who left the PGA Tour irreparably harmed this TourWe cant just welcome them back in. Thats not going to happen.

McIlroy, who was an outspoken critic of the LIV tour before the merger, also acknowledged complaints from fans about working with the Saudi-run organization.

I said to Jay yesterday that youve galvanized everyone against something and that thing youve galvanized against, youve now partnered with. Its hypocritical, he said.

With feelings of suspicion replacing mutual trust, walls are continually being erected around us, Murakami said in late April at Wellesley College. That speech, Writing Fiction in the Time of Pandemic and War, was released Wednesday in The Shincho Monthly literary magazine published by Shinchosha Co.

Everybody seems to be confronted with a choice to hide behind the walls, preserving safety and the status quo or, knowing the risks, to emerge beyond the walls in search of a freer value system, he said.

Like the protagonist in his new novel.

The City and Its Uncertain Walls was released in April in Japan and an English translation is expected in 2024. The protagonist, as Murakami described, faces a tough choice between two worlds: an isolated walled city of tranquility with no desire or suffering, and the real world beyond the walls filled with pain and desire and contradictions.

The novel is based on a story he wrote for a magazine soon after becoming a novelist but was never published in book form. He said he knew it had important ideas and put it aside because he wanted to rewrite it.

Some 40 years later, he discovered this tale fits perfectly with the age we live in now.

Murakami started rewriting the book in March 2020, soon after COVID-19 began spreading around the world, and finished it two years later, as the war in Ukraine passed its one-year mark.

The two big events combined and changed the world in dramatic ways, he said.

The sense of safety that came with a common belief in globalism and mutual economic and cultural dependency crumbled with Russias sudden invasion of Ukraine, Murakami said, spreading fear of similar invasions elsewhere. Many countries, including his home Japan, have since bolstered their military preparedness and budgets.

As the war continues without an end in sight, so do the high walls being built around people, between countries and individuals, Murakami said. It seems to me that the psychic condition if someone isnt your ally, he is your enemy continues to spread.

Can our trust in each other once more overcome our suspicions? Can wisdom conquer fear? The answers to these questions are entrusted to our hands. And rather than an instant answer, we are being required to undergo a deep investigation that will take time, Murakami said.

He says that, while theres not much a novelist can do, I sincerely hope that novels and stories can lend their power to such an investigation. Its something that we novelists dearly hope for.

Murakami has made other efforts to encourage people to think, combat fear or tear down walls. He hosted the radio show Music to put an end to war a month after Russia invaded Ukraine. His Japanese translation of The Last Flower, a 1939 parable of war and peace by American humorist and former New Yorker cartoonist James Thurber, will be released later this month from Poplar Sha.

Did the protagonist stay inside the walls? Please try reading the book yourselves, Murakami said.