Sam Bankman-Fried’s entire fortune is now gone amid FTX crash

  • Sam Bankman-Fried’s fortune has been written off as his assets become virtually worthless, according to the Bloomberg Billionaire Index.
  • At its peak, his net worth was $26 billion and still stood at $16 billion on Monday. But by Wednesday it had shrunk to $1 billion.
  • By late Thursday, it was gone, with Bloomberg putting the value of FTX’s U.S. operations at just $1.

Sam Bankman-Fried’s fortune has been written off as his assets become virtually worthless, according to the Bloomberg Billionaire Index.

And that was before FTX and its subsidiaries filed for Chapter 11 bankruptcy early Friday.

At its peak, his net worth was $26 billion and still stood at $16 billion on Monday. But by Wednesday it had shrunk to $1 billion, according to Bloomberg.

By late Thursday, he was gone. The Bloomberg Billionaires Index put the value of FTX’s U.S. business at just $1 — down from $8 billion after a fundraising round in January — because of a possible trading halt. Bankman-Fried owns about 70% of FTX US.

Additionally, his $500 million Robinhood stake was stripped from his net worth after Reuters reported it was held by Alameda Research, the cryptocurrency trading firm he founded, and may have been used as collateral for loans.

Earlier in the week, Bloomberg had assigned a $1 valuation to Alameda. On Thursday, Bankman-Fried said it was closing Alameda.

The sudden loss of his fortune and the bankruptcy of FTX came amid a surprising series of events for the cryptocurrency sector.

CoinDesk reported last week that Alameda Research held a large amount of illiquid FTT on its balance sheet, fueling speculation that the trading firm lacked sufficient liquidity.

FTX suspended customer withdrawals earlier this week after about $5 billion worth of withdrawal requests were submitted on Sunday. The stock market then looked for potential saviors amid a liquidity crunch. On Tuesday, Binance said it intended to acquire FTX, but backed off a day later.

FTX then reportedly approached crypto exchange Kraken for a bailout and was also in talks with Tron founder Justin Sun, among others, for a bailout.

But reports that FTX moved client funds to the Alameda trading house earlier this year added to the legal risk, with the Securities and Exchange Commission, Justice Department and Commodity Futures Trading Commission investigating FTX.

Meanwhile, Bankman-Fried is being personally investigated by the SEC for possible violations of securities regulations, according to Bloomberg.

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