Crypto Billionaire Sam Bankman-Fried Loses 93% of Net Worth in 1 Day

| Updated
by Kofi Ansah · 3 min read
Crypto Billionaire Sam Bankman-Fried Loses 93% of Net Worth in 1 Day
Photo: Depositphotos

The Bloomberg Billionaires Index estimated SBF’s wealth to be $15.6 billion on the morning of November 8.

FTX’s Sam Bankman-Fried has reportedly lost over 93% of his net worth. It has become known after the Bloomberg Terminal updated the estimated net worth Bankman-Fried to $991 million on November 8, down from $16 billion the previous day.

The latest development comes after the collapse of FTT, the native token of FTX, which recorded a daily loss of over 83%. FTT dropped to a low of $2.67 from a daily high of $20.47.

Sam Bankman-commercial Fried’s dealings with FTX and Alameda Research account for a sizable portion of his wealth, so a drop in the price of FTT tokens would have a direct impact on his personal wealth.

FTX’s woes began after Binance‘s CZ blatantly implied that the exchange might liquidate all of its FTT holdings. The selling pressure on the token subsequently skyrocketed following this announcement. Only a portion of the $500 million FTT reserve had been liquidated by the exchange. Despite this, FTT experienced a large drop.

In the midst of this, Binance announced that it would buy the floundering cryptocurrency exchange FTX in a whole different turn of events. Following this, many people pointed out how Binance turned out to be FTX’s saving grace, which was thought to be on the edge of going bankrupt.

Binance’s involvement and actions were, however, deemed unexpected because CZ turned down Caroline Ellison, CEO of Alameda Research, who had offered to buy Binance’s FTT holdings for $22 per token.

Sam-Bankman-Fried has been regarded as a revered figure in the cryptocurrency industry. Although the 30-year-old already had a name in the crypto space, his heroic efforts during the summer to rescue struggling crypto companies from a financial constraint brought on by the unexpected collapse of the cryptocurrencies LUNC and UST, or TerraUSD, two tokens created by the Terraform Labs platform, further elevated his reputation.

SBF, through his firm FTX Ventures, went on an acquisition binge and bailed out struggling crypto firms to avoid a collapse of the sector. In addition to acquiring a sizable 7.6% investment in Robinhood, the brokerage firm for Gen Z and millennials, he provided credit facilities to lenders Voyager Digital and BlockFi. SBF reportedly has the option to purchase BlockFi.

The Bloomberg Billionaires Index estimated SBF’s wealth to be $15.6 billion on the morning of November 8. Bankman-Fried also owns the cryptocurrency trading site Alameda Research in addition to FTX. He invested in Robinhood (HOOD) – Get Free Report, where he currently owns 7.6% of the stock.

On the morning of November 8, this interest in the well-known trading app was valued at $761 million. His $5.25 billion holding in FTX represented a 55% interest. Its most expensive asset, valued at $7.4 billion, was Alameda Research.

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Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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