Several days ago, FTX co-founder Sam Bankman Fried saw his wealth plummet by over 90% to a value of $1 billion.
The significant drop came after a liquidity crisis wreaked havoc on FTX and the cryptocurrency market. At first, rival Binance agreed to acquire FTX.com but ultimately walked away from the deal.
FTX, including the FTX.us segment, has since declared bankruptcy and depleted Bankman-Fried’s wealth even more.
Bankman-Fried’s wealth hovered at around $1 billion based on his 70% ownership stake in the FTX.us business, which was valued at $8 billion in January.
He also invested in Robinhood Markets HOOD earlier this year. The investment was done by Alameda Research, which also declared bankruptcy Friday.
This gives the stake a value of $0, Bloomberg reported.
Prior to FTX’s collapse, Bankman-Fried had an estimated wealth of $15.6 billion and was ranked the 95th richest person in the world. At his peak, Bloomberg valued Bankman-Fried at $26 billion in March.
There could be assets that Bankman-Fried owns that are not tracked by the index, including potential cash on hand and real estate.
The big question mark will likely be if investments by Bankman-Fried were done on his own or through any of the units like FTX or Alameda Research, which are now valued at $0.
A drop of $16 billion to $1 billion, and now to $0, marks one of the largest wealth wipeouts in history. With 94% of his wealth disappearing in a single day, it marked the largest one-day drop (by percent) in wealth in the history of Bloomberg’s rankings of billionaires.
On Friday, Zhao is worth $16.4 billion, ranking 88th on the billionaires list and down $79.4 billion year-to-date in 2022. Zhao’s loss in wealth on the list by dollars is second only to Meta Platforms META CEO Mark Zuckerberg.
Zuckerberg, ranked 25th on the list, is worth $42.7 billion. That’s down $82.8 billion year-to-date in 2022. Similar to Bankman-Fried, Zuckerberg saw a massive one-day drop earlier this year with $31 billion wiped out in a single day, one of the largest one-day drops by dollar value ever seen.
Bankman-Fried resigned as CEO of FTX as part of the bankruptcy announcement Friday. The move completes one of the biggest falls after being recognized as a leader in the space and now seeing calls for arrest, fraud charges and more by the crypto community.
Bankman-Fried was previously one of the youngest people to be included in the Forbes 400 richest list.
- The bankruptcy news by FTX and Bankman Fried’s resignation has sent crypto prices further down on Friday.
- The FTX Token FTT/USD is down 29% to $2.72 on Friday and is down 89% in the last seven days.
- Bitcoin BTC/USD is down 5% to $16,852.05 on Friday and down 18.8% in the last seven days.
- Ethereum ETH/USD is down 4% to $1,257.90 on Friday and down 22.4% in the last seven days.
Photo by Pawel Czerwinski on Unsplash
Image and article originally from www.benzinga.com. Read the original article here.