Sam Bankman-Assets Fried’s Fell From $16 Billion To Nothing In A Matter Of Days: One of the largest-ever wealth destructions in history occurred when Sam Bankman-Fried, a former co-founder of FTX, lost his entire $16 billion fortune.
The collapse of his crypto empire, which filed for bankruptcy along with his departure on Friday, has rendered the holdings of the businessman once compared to John Pierpont Morgan worthless. The 30-year-value old’s was $26 billion at its highest point, and it was still almost that much at the beginning of the week.
Because of a prospective trade stoppage, the Bloomberg Billionaires Index has reduced the value of FTX’s US business, which Bankman-Fried owns at around 70%, from $8 billion in a January funding round to $1.
Reuters reported that Bankman-Fried’s $500 million plus stake in Robinhood Markets Inc. was held through his trading firm, Alameda Research, and may have been used as collateral for loans; as a result, it was also excluded from the calculation of his wealth.
Alameda and FTX.US were also included in the bankruptcy filing. Employees are anticipated to stay with the business and “help Mr Ray and independent professionals” during bankruptcy, according to FTX, which stated Friday it had filed for Chapter 11 bankruptcy and that Bankman-Fried had resigned as CEO.
Following a liquidity crisis at one of its affiliates, Bankman-empire Fried’s collapsed this week. On Thursday, its US exchange, FTX.US, advised customers to close out any open positions and warned that trading may be suspended in a few days.
In the Bahamas, where FTX.com is based, authorities froze the assets of its local trading subsidiary and related parties. Alameda produced about $1 billion in earnings last year and FTX made hundreds of millions more, so it’s plausible that Bankman-Fried holds assets that aren’t included in the Bloomberg index.
2) I also should have been communicating more very recently.
Transparently–my hands were tied during the duration of the possible Binance deal; I wasn’t particularly allowed to say much publicly. But of course it’s on me that we ended up there in the first place.
— SBF (@SBF_FTX) November 10, 2022
He reportedly had more than $500 million invested in funds managed by Sequoia and other venture capital firms and was also a shareholder in media start-up Semafor, according to tech news website The Information on Thursday, but if those assets are held through Alameda they might be destroyed by its losses.
According to a person with knowledge of the situation, Bankman-Fried is being looked into by the US Securities and Exchange Commission for possible violations of securities laws.
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