Former FTX billionaire, Sam Bankman-Fred has reportedly gone bankrupt as he started the new year with less than $100,000. As of March last year, the former crypto billionaire was worth $24 billion.
However, he is currently facing some charges that are taking all his money away. If he continues like this, we wonder how he will afford his team of lawyers.
Bankman who has pleaded not guilty to the charges, including cheating investors out of billions is currently awaiting trial which is set for September
Recall that Binance was out to purchase FTX.COM, but changed its decision after it crashed. It had earlier announced its intention to acquire the crypto platform before stating it could still pull out of the deal depending on due diligence.
Cryptocurrency Crashes, Binance Backs Out
What Happened To The FTX Boss, Sam Bankman Fried?
The former boss was the poster boy of cryptocurrency until the current happenings. He was one of the richest men in the industry before both his companies FTX and Alameda Research collapsed in November.
Quick Note: FTX was founded in 2019 by Former Wall Street trader Sam Bankman-Fried and ex-Google Gary Wang. At its peak, FTX Exchange was valued at $32 billion.
How This All Started?
This showdown began in November 2022. Crypto news website, CoinDesk, reported a leaked balance sheet that showed Alameda Research, Bankman-Fried’s crypto trading firm, was heavily dependent on FTX’s native token FTT.
This was followed by Binance CEO Changpeng Zhao liquidating all its holdings of FTT due to unspecified “recent revelations”.
This move by Binance witnessed thousands of investors rushing to withdraw all their money at the same time. This wrecked the FTX Exchange and depreciated the value of FFT.
With all these happening, Fried witnessed a massive drop in net worth, from a whopping $16 billion to as low as $991 million in a single day.
This continued until SBF was forced to declare FTX bankrupt in December. Currently, Fried is left with $100,000 and leaving with his parents.
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