Previously one of the crypto world’s heavy hitters, Sam Bankman-Fried, has been knocked off of Bloomberg’s billionaire list.
The past few days saw extreme turbulence related to FTX, Alameda, and Binance.
In the wake of it, ending with Binance’s statement of intent to take over FTX’s business, the CEO of both companies has been knocked off of the Bloomberg Billionaires Index due to an estimated 94% drop in personal wealth.
$25 Billion Lost Over Time
At his peak, Sam Bankman-Frieds’ net worth was estimated at about $26 billion. His fortune had already declined over time, due in part to the ongoing crypto winter.
By the 8th of November, Bloomberg estimated his personal fortune to be worth around $15.6 billion. His 53% stake in FTX – worth $6.2 billion – and in Alameda Research, worth $7.4 billion, made up the bulk of his assets, leaving him $2 billion in remaining funds.
However, the overnight wipeout of the two companies he owned the majority stake in led the stake in both Alameda and FTX to be worth only $1, according to the Bloomberg wealth index, effectively erasing a shocking $13.6 billion in assets overnight.
Still a Billionaire, No Longer a Bigshot
It’s worth noting that SBF is still a billionaire and nowhere close to bankruptcy. Regardless, he has lost his spot on the Bloomberg billionaire list, unlike his crypto counterpart CZ, who confirmed Binance’s intent to bail out the exchange and turned Jenga tower overnight.
“This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
Additionally, his wealth may soon have a small rebound, depending on the terms of Binance’s takeover, which reportedly does not include FTX.US, the branch of FTX in charge of all operations in the USA.
Earlier this year, FTX US was valued at approximately $8 billion. At the moment, it’s unclear how far its valuation has dropped and how the US branch of FTX will be run following Binance’s takeover of the rest of the former’s global platform.
Although Binance’s actions have thankfully saved FTX customers from joining the ranks of the IOU army comprised of creditors (“unsecured” or otherwise) of Celsius and others, the sudden collapse comes as a shock nonetheless. It’s only been about a month since FTX was gunning for Celsius assets – only to end up in a similar position.