Sam Bankman-$16 Fried’s billion fortune vanished in less than a week. Even though Sam Bankman-cryptocurrency Fried’s empire was starting to fall apart, he awoke on Monday still a billionaire. His fortune had been wiped out by Friday.
Bloomberg estimated Bankman-net Fried’s worth to be around $16 billion at the start of the week. The value of his assets was, however, destroyed to zero when his cryptocurrency exchange, FTX, went under, in what Bloomberg called “one of history’s greatest-ever destructions of wealth.”
About 70% of FTX’s US operations, which the index currently determines to be essentially worthless, are owned by Bankman-Fried. After news reports claimed that his ownership of the online brokerage Robinhood was held through Alameda and may have been used as collateral for loans, the stake, which had previously been valued at more than $500 million, was taken out of Bloomberg’s calculation.
Bankman-Fried, a proponent of “effective altruism,” has worked to increase his wealth so that he can donate it to charity. But his charitable endeavors are now in jeopardy.
The five-person team stated in a statement that they “have fundamental doubts regarding the legitimacy and integrity of the business operations that were funding the FTX Foundation and the Future Fund.”