A few weeks ago, FTX CEO Sam Bankman-Fried was a wealthy billionaire investing heavily to support ailing industrial projects. However, following FTX’s merger with Binance, a significant portion of its wealth simply depreciated.
As a result of the actions of the head of rival crypto exchange Binance, a liquidity crisis has formed on the side of FTX. FTX reached out to the rival for help, and it agreed to provide funding subject to full takeover of the troubled platform. Detailed terms of the deal were not disclosed, but it is likely reported Bloombergthat the Bankman Fried fortune, valued at $15.6 billion, will largely cease to exist.
The crypto billionaire’s stake in FTX was 53%, which was worth $6.2 billion before the acquisition. The businessman’s even more expensive asset was Alameda Research, which added $7.4 billion to his fortune. Bloomberg sees Alameda as the root of FTX’s problems, although the mechanics of the interaction companies remain completely unknown, and after passing under Binance’s wing, both assets are valued at $1. For example, Bankman-Fried’s health fell from $15.6 billion last night to $991.5 million, a decrease of almost 94%.
The richest person in the cryptocurrency industry remains Binance boss Changpeng Zhao – his fortune is estimated at $16.4 billion, and in January, when the industry was on the rise, its size reached $97 billion, according to The American Crypto exchange FTX.US will be held as a separate company that will not become part of Binance – Bankman-Freed remains owner of a majority stake, was valued at $8 billion in January, and it’s still unclear how the collapse of the namesake international platform will hit them.