According to Bloomberg, FTX CEO and well-known crypto millionaire Sam Bankman-Fried lost a remarkable 94% of his total wealth in a single day. At this point, he is just clinging to the “billionaire” moniker.
In sum, Bankman-Fried saw a decline in his net worth that took him from around $15.6 billion to just under $1 billion. This is the greatest drop in wealth ever recorded by Bloomberg, so it’s shocking to see it completely wiped away.
It is even more surprising when one considers the fact that Bankman-Fried had been garnering a strong reputation as a “adult in the room” for the turbulent world of blockchain and crypto.. He had developed a habit of rescuing smaller businesses that were in financial problems, and he indicated interest in collaborating with the government to improve the way it regulates the web3 sector.
However, his fall from glory just took a single day, which is a wonderful illustration of the broad pandemonium that defines the business as a whole.
Just one week ago, Bankman-Fried had a net worth of $16 billion, but since since competing exchange Binance revealed that it was making a bid to purchase FTX, his fortune has completely evaporated.
A second portion of his net wealth equaling $7.4 billion was locked up in a different cryptocurrency trading business known as Alameda Research. He possessed a stake in FTX that was worth $6.2 billion.
The value of both FTX and Alameda has significantly decreased since Binance’s announcement that it would purchase FTX, which has resulted in the collapse of the whole house of cards.
Around one period of time, the total wealth of Bankman-Fried was estimated to be $26 billion. Back in April, Bloomberg described him as a “kind of crypto Robin Hood, beating the rich at their own game to win money for capitalism’s losers.” At the time, he was promised to give a large portion of it to charitable organizations and political causes. But later on, he changed his mind and said that the vow was just a “dumb quote,” according to Futurism.
However, he has a reputation for being a spendthrift, as shown by the fact that he purchased a Super Bowl commercial starring Larry David as well as the naming rights to the stadium that the Miami Heat play in.
Those extravagant purchases, on the other hand, seem like a faraway dream right now.
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