Gone with the wind. Literally. This Is what happened to the USD 16-billion wealth of former FTX co-founder Sam Bankman-Fried. In one of the most spectacular downfalls in the history of wealth destructions, Bankman-Fried’s wealth fell to zero within a week.
As the crypto empire filed for bankruptcy, the 30-year-old businessman had to resign. His fortunes also came tumbling down from USD 26 billion sometime back to USD 16 billion a week ago before plummeting to zero.
Once valued at more than $500 million, Bankman-Fried’s stake in Robinhood Markets Inc. was removed from his wealth calculation as it was reported that it may have been used as collateral for loans.
Bankman-Fried owns about 70 percent of FTX’s US business. It is valued now at USD 1 from $8 billion in January. Imminent liquidity crunch brought the empire crumbling down and the company filed for bankruptcy.
Authorities froze the assets of the firms related to FTX.com in Bahamas, where it is based. Bankman-Fried resigned as chief executive officer and will be succeeded by John J. Ray III. US Securities and Exchange Commission is investigating Bankman-Fried for potential violations of securities rules.