InfoNesia.xyz – Amid FTX’s collapse this week, founder and CEO Sam Bankman-Fried (SBF) has rapidly transformed from a crypto industry icon and so-called “savior” into an ignominious figure, responsible for potentially billions of dollars’ worth of customer losses. And he’s apparently lost his whole fortune in the process, as well.
Bloomberg’s Billionaires Index reports that Bankman-Fried’s assets dropped in value from $16 billion at the start of the week to effectively nothing now, following news of FTX’s bankruptcy filing today. Bloomberg estimates that most of his assets were tied up in the companies, although he may have additional holdings that it doesn’t track.
SBF’s considerable crypto fortune had been valued as high as $26 billion this past spring, before the market declined. Bloomberg described this week’s personal loss as “one of history’s greatest-ever destructions of wealth.”
FTX Files Chapter 11 Bankruptcy, SBF Steps Down as CEO
The FTX crisis of the past few days has reached its conclusion: bankruptcy. In a press release shared on Twitter, the crypto exchange announced that it had filed for Chapter 11 bankruptcy “to …
FTX is believed to have a several-billion-dollar hole in its balance sheet. The exchange is alleged to have used customer funds to cover losses at SBF’s trading firm Alameda Research, before suffering a liquidity crunch this week as users withdrew funds and sent the value of FTX’s FTT token crashing. SBF resigned as CEO today alongside news of the filing.
Bankman-Fried founded Alameda in 2017, profiting greatly from arbitrage trading strategies before establishing FTX in 2019. His profile started to rise in 2020, as he was touted as a “crypto savior” for helping SushiSwap after the founder of that decentralized exchange (DEX) bolted and left the community in the lurch.