Sam Bankman-Fried is the founder of the cryptocurrency exchange platform FTX. Recently, he is in the headlines. He has stirred sensation after his company filed for bankruptcy. In fact, the collapse of the company has crashed several cryptocurrencies. Moreover, it has induced fear about the future of the crypto industry. Bankman-Fried is also the erstwhile CEO of FTX. After the company went bankrupt, he had his wealth annihilated overnight.
Net worth of Sam Bankman-Fried
Samuel Bankman-Fried’s net worth is literally zero as on November 16, 2022. Indeed, the 30 year old entrepreneur owned a net worth of $16 billion on November 7, 2022. All of this wealth disappeared within a week. In fact, by November 11, 2022, the Bloomberg Billionaires Index evaluated that Bankman-Fried had no material wealth.
Bloomberg has termed the downfall as ‘one of history’s greatest-ever destructions of wealth’. Samuel’s fortune reached its highest point earlier this year during spring when his net worth stood at $26 billion. Over the summer, when almost all the cryptocurrencies saw a downturn, the FTX exchange managed to stay afloat. In fact, in July Samuel stated that his company still had a few billion to stabilize the industry. However, things did not remain the same over time. On Friday, November 11, the company filed for bankruptcy.
Earnings from FTX
Bankman-Fried obtained a degree in physics. Later he worked for a proprietary trading firm. The name of the firm is Jane Street Capital. He migrated to Berkeley in 2017. There he emerged as the director of the Centre for Effective Altruism. In fact, he established the quantitative trading research platform Alameda during the same year.
Samuel moved to Hong Kong in 2018 and then instituted FTX in 2019. Indeed, the crypto exchange platform possessed 90% of Alameda Research. In fact, in three years, the company carved its name as one of the leading crypto trading platforms.
In 2021, FTX succeeded in raising $900 million from firms including SoftBank and Coinbase Ventures. The company’s value was a stunning $18 billion. Samuel was the owner of 70% stake in the company. In fact, he rose to prominence as he inscribed his name as one of the wealthiest persons under 30 years of age in history. In January 2022, FTX raised another $400 million and arrived at a valuation of $32 billion.
Bankruptcy and resignation from FTX
The company declared that Samuel Bankman-Fried was resigning from his post of the chief executive officer. The company stated that John J. Ray III would succeed Samuel. Earlier on November 10, the entire staff of FTX openly resigned.
Binance founder and CEO Changpeng Zhao afterwards decided to step in and bail out the bankrupt company. On November 8, Samuel’s tweet came out that Binance seized FTX over a strategic transaction.
Meanwhile, Bankman-Fried’s net worth came down by 94% in a single day. According to the Bloomberg Billionaire Index, his wealth declined from $15 billion to $1 billion in a single day and now stands at zero.