- Sam Bankman-Fried’s net worth has plummeted from $16 billion to less than a billion in just a day.
- Binance intends to acquire FTX given the latter’s financial woes.
- Alameda Research is not part of the deal, which could be problematic for SBF and his team.
FTX’s current CEO Sam Bankman-Fried (SBF) is no longer a billionaire. That was confirmed by the Bloomberg billionaires index, saying that his net worth has shed almost $15 billion overnight and is now only at $991 million.
Interestingly, $600 million of his net worth is in Robinhood stock, according to a source.
In fact, his net worth could continue to plummet, given the dismal situation at embattled crypto exchange FTX and Alameda Research, which many claim to be insolvent. In the court of public opinion, however, the rumors are true, especially that Binance is going to acquire FTX.
Both SBF and Binance CEO Changpeng Zhao broke the news on Twitter.
The news is the talk of the town, with many people dumbfounded by how fast the events have unfolded. This suggests that FTX’s financial struggles are too massive to salvage. In CZ’s words, “there is a significant liquidity crunch.” This means that there are too many people withdrawing their money from FTX to the point that the exchange cannot pay them anymore.
Things started to crumble for FTX after reports circulated regarding its questionable balance sheet. CryptoNewsLand also published a couple of articles regarding the recent events at FTX.
The end is not in sight for SBF, however, since FTX is the only platform that Binance is willing to bail out. There is still Alameda Research, which has many investors who want to withdraw. Given that FTX’s native token FTT has crashed from $22 to $5.32 in just one day, things may take an even worse turn.
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