Sam Bankman Fried, a crypto billionaire, lost 94% of his wealth over night.

Sam Bankman Fried, a crypto billionaire, lost 94% of his wealth over night.

Sam Bankman Fried, a crypto billionaire, lost 94% of his wealth over night.

Details indicate that Sam Bankman’s net worth decline was the largest one-day decline in a billionaire’s wealth.
Sam Bankman Fried, a crypto billionaire and the owner of the FTX cryptocurrency exchange, recently lost 94% of his wealth, dropping it from $16 billion to just $1 billion. The biggest wealth collapse a billionaire has experienced in a day occurred as a result of all this wealth loss occurring in just one day.

But how did it all come about? As a result of a severe liquidity shortage, Sam Bankman revealed on Tuesday that his cryptocurrency exchange FTX was being sold to Binance. Bankman owns a 53% stake in FTX, or $6.2 billion, and an additional $7.2 billion comes through his cryptocurrency trading company.

The valuations began to fall shortly after the acquisition news was announced, and both FTX and Alameda research were believed to be worth just $1 apiece, which drastically reduced Bankman’s wealth.
Sam Bankman, who Fortune Magazine once hailed as the future Warren Buffet, now has two significant holdings that are worth $1 billion.

This wasn’t the first time devaluation had caused a millionaire to suffer significant wealth losses. The CEO of Meta, Mark Zuckerberg, just lost $29 billion in a single day, and Elon Musk lost nearly $50 billion as a result of a Tweet. In contrast to Bankman, who is currently only worth $1 billion, both Zuckerberg and Musk were still keeping substantial amounts of their money.

In addition to Bankman and his company FTX, other crypto firms are struggling amid the crypto crash. The crash cost Binance, the largest cryptocurrency exchange in the world, $79.4 billion.