“FTX.com co-founder Sam Bankman-Fried’s fortune went up in.. smoke in a matter of days, recording one of the biggest disasters in history for the cryptocurrency industry.
According to Bloomberg, the devaluation of Bankman-Freed’s crypto exchange, Alameda Research, in a matter of days means that his fortune is now almost nil.
At its peak last March, Bankman-Freed’s fortune was estimated at $26 billion and at the beginning of this week it was $16 billion.
Meanwhile, Bankman-Fried’s $500 million stake in Robinhood was removed from the 30-year-old’s wealth calculation index after Reuters reported that Bankman-Freed’s stake in Robinhood was held by Alameda.
Recall that the US Securities and Exchange Commission (SEC) is investigating whether FTX properly managed customer funds, as well as its relationship with other parts of Bankman-Fried’s crypto empire, including Alameda Research. Officials from the Department of Justice are also cooperating with SEC lawyers.
During a briefing on Wednesday, before Binance committed to a takeover bid for FTX, Bankman-Freed told investors in the cryptocurrency exchange that it faces a deficit of up to $8 billion and needs $4 billion to keep the company within its obligations.
