Riches to Rags: Going from $16 Billion Net Worth to $0: The Sam Bankman-Fried’s Story!
The FTX collapse is one of the most dramatic in crypto history, and its CEO is paying the cost. According to Bloomberg’s Billionaire Index, Sam Bankman Fried’s $16 billion net worth is now $0.
The famous crypto mogul’s entire fortune crashed in a matter of days. And the 30-year-old’s assets are eroding as a result of FTX’s fall.
Following a probable trade suspension, the Bloomberg Billionaires Index has assigned a value of $1 to FTX. The corporation was valued at roughly $8 billion in a January funding round. A drop that undoubtedly affected the platform’s youthful CEO, Bankman-Fried, who owns 70% of it.
Bloomberg further alleged that Bankman-Fried’s $500 million investment in Robinhood Markets Inc. is non-factorable owing to claims that it was handled via Alameda Research. With a developing dispute at the FTX trading company, it has been discovered that $500 million would most probably be kept as collateral.
Following recent events, FTX has encountered a liquidity issue of up to $8 billion. Despite the fact that the trading platforms’ search for a rescuer has yet to be answered. Binance, one of its main competitors, was prepared to buy the platform prior to its due diligence.
Following further research, Binance backed out of the agreement, and SBF is now demanding more than $9 billion to recover FTX. There have been talks of forming a group of investors, including Justin Sun and OKX, to help save the platform.
However, no formal indications of an agreement on the horizon have surfaced as of yet.
FTX declared bankruptcy recently, unable to get a bailout from competitor cryptocurrency exchanges and raising concerns that the cryptocurrency economy is on the verge of having its own Lehman Brothers episode.