What is Sam Bankman-Fried's net worth? FTX CEO loses 94% of his wealth as company files for bankruptcy
The $32 billion business with headquarters in the Bahamas said on November 11 that it would initiate Chapter 11 bankruptcy proceedings
NEW YORK, NEW YORK CITY: The embattled cryptocurrency exchange FTX has filed for bankruptcy after a dramatic financial collapse. The $32 billion business with headquarters in the Bahamas said on Friday morning, November 11, that it would initiate Chapter 11 bankruptcy proceedings in a federal court in Delaware. Sam Bankman-Fried, the controversial FTX founder and CEO, has resigned from his position, however, according to Daily Mail, he will continue to serve as an advisor to help with an ‘orderly transition.’
The US Securities and Exchange Commission is reportedly looking into Bankman-Fried, the crypto whiz known by his initials SBF, for possible securities law violations. According to FTX, John J Ray III, a Chicago-based attorney who managed Enron's liquidation following its demise, will take over as CEO and navigate the business through bankruptcy.
Meanwhile, according to the Bloomberg Billionaires Index, Sam Bankman-Fried, the 30-year-old co-founder and chief executive of FTX, has lost his multibillionaire status after his net worth dropped 94% in a single day as cryptocurrencies fell on the news that his company was on the verge of bankruptcy. According to Wall Street Journal, Bankman-Fried, who earlier this week had a personal fortune of $15.6 billion is now only worth roughly $991.5 million. At his peak, Bankman-Fried had a personal fortune of $24 billion and was listed as the second-wealthiest crypto billionaire in the world on Forbes magazine's annual wealthiest list, which was published in April.
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.— CZ 🔶 Binance (@cz_binance) November 6, 2022
1) Hi all:— SBF (@SBF_FTX) November 11, 2022
Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US.
The collapse of Bankman-Fried's wealth came after billionaire crypto rival and CEO of Binance, the largest cryptocurrency exchange in the world, Changpeng Zhao, stoked FTX economic health rumors in a tweet on Sunday, November 6. Zhao said, “Liquidating our FTT is just post-exit risk management, learning from Luna. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.” This sparked panicked FTX customers who attempted to withdraw $6 billion of funds in 72 hours, and the company was unable to cover its obligations with depositors due to a 'liquidity crunch.’
Breaking: FTX says it filed for bankruptcy in the U.S. and Sam Bankman-Fried resigned as the cryptocurrency exchange’s CEO https://t.co/OjtabcYNtW— The Wall Street Journal (@WSJ) November 11, 2022
Binance intervened with an offer to save the company after FTX was forced to halt user withdrawals, but backed out after allegedly discovering a significant $8 billion discrepancy in the company's records. Bankman-Fried desperately sought out additional financial supporters to save FTX, but as news of government investigations into his management of customer assets spread, he failed to secure support from other means. The crypto genius who was once dubbed the ‘new JP Morgan’ for his role to save volatile exchanges now faces the imminent threat of the collapse of his company.