FTX CEO loses $14,6 billion in 24 hours

Sam Bankman-Fried’s fortune has collapsed by 93%

09.11.2022 - 11:00

471

3 min

What’s new? Sam Bankman-Fried, the head of the FTX crypto exchange, has lost 93,6% of his fortune in 24 hours. The total loss amounted to $14,6 billion, and the entrepreneur’s capital dropped from $15,598 billion to $0,991 billion, DB News Project reports, referring to the Bloomberg Billionaire Index. The reason was the collapse of FTX’s (FTT) native token, from November 8 to 9, the rate collapsed by 74,38%. As of 11:10 UTC, the asset is trading at $4,47, according to Binance.

The Bloomberg billionaires index has been updated estimating SBF's net worth at $991m, down from $16b yesterday pic.twitter.com/33faJNiw7y — db (@tier10k) November 8, 2022

What else is known? After Binance CEO Changpeng Zhao announced plans to liquidate its positions in FTT completely, the token’s rate began to fall. FTX users subsequently reported problems with withdrawals of more than $1000 in a single transaction. Withdrawals were later completely suspended.

According to Unfolded as of November 8, FTX customers managed to withdraw about $6 billion worth of FTT tokens from the platform in 72 hours.

CRYPTO EXCHANGE FTX SAW AROUND $6 BLN OF NET WITHDRAWALS IN 72 HOURS BEFORE TUES MORNING - CEO SAM BANKMAN-FRIED IN TELEGRAM MESSAGE TO STAFF — unfolded. (@cryptounfolded) November 8, 2022

On November 8, Zhao struck a deal with the Bankman-Fried exchange on a full acquisition of FTX. It is designed to address the lack of liquidity and the withdrawal of users’ funds from the platform.

In April 2022, Forbes ranked the richest people in the crypto industry, with Zhao and Bankman-Fried first and second. The entrepreneurs’ fortunes at that time were estimated at $65 billion and $24 billion, respectively.

The deal was preceded by rumors of a confrontation between Binance and FTX, more details of which can be found in GetBlock Magazine’s article.

Author: