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Sam Bankman-Fried's entire fortune has now been wiped out as pieces of his crypto empire shrivel in value to $1

Brian Evans
Updated ·2 min read
This is a photo of Sam Bankman-Fried looking to the side.
Sam Bankman-Fried.Tom Williams/Getty Images

  • Sam Bankman-Fried's fortune has been erased as his assets become essentially worthless, according to the Bloomberg Billionaire Index.

  • At its peak, his net worth was $26 billion and still stood at $16 billion on Monday. But by Wednesday it had shriveled to $1 billion.

  • By late Thursday, it was gone, with Bloomberg putting the value of FTX's US business at just $1.

Sam Bankman-Fried's fortune has been erased as his assets become essentially worthless, according to the Bloomberg Billionaire Index.

And that came before FTX and its affiliates filed for Chapter 11 bankruptcy early Friday.

At its peak, his net worth was $26 billion and still stood at $16 billion on Monday. But by Wednesday it had shriveled to $1 billion, according to Bloomberg.

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By late Thursday, it was gone. The Bloomberg Billionaires Index put the value of FTX's US business at just $1 — down from $8 billion after a January fundraising round — due to a potential trading halt. Bankman-Fried owns roughly 70% of FTX US.

In addition, his $500 million in Robinhood stock was stripped from his net worth figure after Reuters reported it was held by Alameda Research, the crypto trading firm he founded, and may have been used as collateral for loans.

Earlier in the week, Bloomberg had assigned a $1 valuation to Alameda. On Thursday, Bankman-Fried said he is shutting down Alameda.

The sudden loss of his fortune and FTX's bankruptcy came amid a stunning series of events for the crypto sector.

CoinDesk reported last week that Alameda Research held a large amount of illiquid FTT on its balance sheet, spurring speculation that the trading firm lacked sufficient liquidity.

FTX halted customer withdrawals earlier this week after about $5 billion worth of withdrawal requests came in on Sunday. The exchange then sought out potential rescuers amid a liquidity crunch. On Tuesday, Binance said it intended to acquire FTX, but backed out a day later.

FTX then reportedly approached crypto exchange Kraken for a bailout and was also in talks with Tron founder Justin Sun, among others, for a rescue.

But reports that FTX transferred client funds to trading house Alameda earlier this year added to its legal risk, with the Securities Exchange Commission, Justice Department and Commodity Futures Trading Commission all investigating FTX.

Meanwhile, Bankman-Fried is also personally being investigated by the SEC for potentially violating securities regulations, according to Bloomberg.

Read the original article on Business Insider