Sam Bankman-Fried, the chief executive officer of FTX, has been removed from the Bloomberg Billionaires Index after his estimated net worth fell by roughly 94% to $991.5 million in a single day.
Binance CEO Changpeng “CZ” Zhao said on Tuesday that he has signed a temporary deal to acquire FTX following concerns over the Bahamas-based exchange’s apparent insolvency led to a halt in withdrawals and a precipitous decline in the price of FTX’s native token.
Before his company’s liquidity problem, Bankman-Fried was believed to be worth $15.2 billion, but Bloomberg reports that it lost $14.6 billion overnight. The fast rise to the financial success of Bankman-Fried, along with his relative youth and eccentric attitude – including his rumored preference for sleeping on a beanbag chair in the office – made SBF one of the crypto industry’s darlings.
Bankman-Fried, a self-described “effective altruist,” made bold pledges earlier this year to devote the majority of his $21 billion wealth to charity. In addition, he pledged to spend up to $1 billion to promote political candidates aligned with his aim to prepare for future pandemics.
Although Bankman-Fried spent nearly $40 million prior to the midterm elections (with mediocre success), he eventually reneged on his commitment and referred to it as “a stupid phrase.”
Sam Bankman-Fried Net Worth
Sam Bankman-Fried awoke on Monday still a billionaire, despite the unraveling of his bitcoin enterprise. By Friday, he had lost his whole fortune.
Bloomberg estimated that Bankman-net Fried’s worth was approximately $16 billion at the beginning of the week. As a result of the failure of his cryptocurrency exchange, FTX, however, the value of his assets was reduced to zero in what Bloomberg termed “one of the largest destructions of wealth in history.”