Sam Bankman-Fried’s Net Worth Collapses From An Estimated $16 Billion to $1 Billion. Samuel Bankman-Fried was born on March 6, 1992, in the United States. He is also known by his initials, SBF. He started the cryptocurrency exchange FTX and is the CEO of FTX.US, which is its U.S. branch. He managed assets through Alameda Research, a quantitative cryptocurrency trading company he started in October 2017. Late in 2022, FTX had a liquidity crisis, which caused its own cryptocurrency, FTT, to crash. Bankman was also forced to shut down his trading company, Alameda Research, because of the crisis.
Sam Bankman-Fried’s Net Worth Collapses
The Bloomberg Billionaires Index says that as of Monday, Mr. Bankman-Fried had a net worth of about $15.6 billion. This makes him one of the 100 richest people in the world. Bloomberg said on Wednesday that he was worth about $1 billion.
The 94% loss is the biggest one-day drop that Bloomberg has ever seen among billionaires.
These kinds of calculations are both an art and a science, and the Bloomberg index gave both FTX and Alameda Research, which he also founded, a value of just $1. The Bloomberg Billionaires Index is a daily list of the 500 richest people in the world, along with profiles of each of them.
The $4.7 billion worth of the 500th richest person on the Bloomberg list. Mr. Bankman-Fried is a follower of the philosophy of “effective altruism,” which says that people should do the most good for society by making a lot of money and giving it away. He also gave a lot of money to Democrats running for office.
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Who Is Sam Bankman-Fried?
Bankman-Fried was born on the Stanford University campus in 1992 to a family of professors. He was born in California to a Jewish family from the upper middle class. His parents, Barbara Fried and Joseph Bankman are both professors at Stanford Law School.
His aunt, Linda P. Fried, is the dean of the Mailman School of Public Health at Columbia University. He went to Canada/USA Mathcamp, a summer program for high school students who are good at math. He went to high school in Hillsborough at Crystal Springs Uplands School.
Sam Bankman-Fried’s Career
In the summer of 2013, Bankman-Fried started trading international ETFs at Jane Street Capital, a proprietary trading firm. He started out as an intern, but when he graduated, he went back to work there full-time.
Bankman-Fried left Jane Street in September 2017 and moved to Berkeley. From October to November 2017, he worked briefly as director of development at the Centre for Effective Altruism. In November 2017, he started a trading firm called Alameda Research.
About 90% of Alameda Research was owned by Bankman-Fried as of 2021. In January 2018, Bankman-Fried set up an arbitrage trade that moved up to $25 million per day to take advantage of the fact that bitcoin was more expensive in Japan than in America. After going to a conference on cryptocurrencies in Macau at the end of 2018, he moved to Hong Kong. He started FTX, a cryptocurrency derivatives exchange, in April 2019, and it opened for business the following month.
Bankman-Fried and other industry leaders testified in front of the Committee on Financial Services on December 8, 2021, about how to regulate the cryptocurrency industry.
On May 12, 2022, it came out that Bankman-Fried, which owns most of Emergent Fidelity Technologies Ltd., had bought 7.6% of Robinhood Markets Inc. stock.
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Liquidity Crisis At FTX
Changpeng Zhao, the CEO of Binance, said on Twitter in November 2022 that his company planned to sell all of the FTT tokens it had. As part of the sale of its shares in FTX in 2021, Binance got FTT. Zhao sent out his tweet soon after a report from CoinDesk said that most of Bankman-hedge Fried’s fund Alameda’s holdings were in FTT. Due to the low trading volume of FTT, Bloomberg and TechCrunch said that any sale by Binance would likely have a big effect on the price of FTT.
JUST IN: FTX CEO Sam Bankman-Fried's net worth falls $14.6 billion in the past 24 hours to $991M.
— Watcher.Guru (@WatcherGuru) November 8, 2022
The price of FTT and other cryptocurrencies went down after Zhao said he was going to sell it and after he and Bankman-Fried fought on Twitter. Due to a liquidity crisis at FTX, Zhao said on November 8 that Binance had signed a non-binding agreement to buy FTX. Zhao also said on Twitter that the company would soon finish doing its due diligence and that no cryptocurrency exchange should use tokens as collateral. He also wrote that he thought FTT would be “highly unstable” as things went on.
On the day the news came out, FTT’s value dropped by 80%. FTX would not have been sold as part of the deal. The US. Bloomberg said on November 9 that it was “unlikely” that Binance would buy FTX because FTX’s finances were in bad shape. Later that same day, the Wall Street Journal said that Binance had decided not to buy FTX. Binance said it would not go through with the deal because FTX had mishandled customer funds and was still being investigated. During the crisis, the Bloomberg Billionaires Index said that Bankman-Fried was no longer a billionaire.
Sam Bankman-Fried’s Personal Life
Bankman-Fried is vegan. He lives with about 10 other people in a penthouse in the Bahamas. He likes to play the video game League of Legends, and his company, FTX, has invested in the esports team TSM. As a result, TSM’s name has been changed to TSM FTX.
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Jessa Martin is the author of Nogmagazine, A professional in writing by day, and novelist by night, she received her bachelor of arts in film from Howard University and her master of arts in media studies from the New School. A Brooklyn native, she is a lover of naps, cookie dough, and beaches, currently residing in the borough she loves, most likely multitasking.