Crypto CEO Sam Bankman-Fried’s Net worth drops from $16Bn to $1 as company goes bankrupt

The founder of crypto exchange company FTX, Sam Bankman-Fried, has completely lost the value of his net worth after his company filed for bankruptcy.

Dockaysworld gathered that Bankman’s worth which was closely tied to his company saw a huge decline as it came under a crisis involving funds of customers amongst other issues.

According to The Wall Street Journal, Bankman was said to be $16 billion rich on Monday but FTX was later valued at about $1 just before the bankruptcy announcement.

Bankman is no longer one of the world’s 100 richest people according to Bloomberg Billionaire index.

Bankman made the disclosure via his Twitter page recently and promised to ensure safety of customer funds.

He tweeted:

“So, right now, we’re spending the week doing everything we can to raise liquidity. I can’t make any promises about that. But I’m going to try. And give anything I have to if that will make it work.”

1) Hi all:

Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US.

— SBF (@SBF_FTX) November 11, 2022

According to sources close to the matter, Bank is under investigation over speculations that the company might have used customer deposits to fund bets at Alameda research to gain profit and return interest. In traditional markets, brokers are expected to separate client funds from other company assets.

In more damning news, Reuters reported that at least $1 billion of customer funds have vanished from the collapsed crypto exchange.

Bankman had secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research but a humongous portion of that money has now disappeared.

Hundreds of millions of dollars are now flowing out of FTX wallets, some speculate liquidators but it's late on a friday night, not typical times for such rapid heavy movements. Some withdrawals are being swapped from Tether to DAI. Hack or insider actions? $26 million here pic.twitter.com/8wWlaE7na9

— foobar (@0xfoobar) November 12, 2022

Recall, American Rapper Kanye West also saw his net worth wiped out in a similar manner after losing 2 billion dollars in one day following his anti semitic comments which saw him lose lucrative deals and endorsements from partners like Adidas amongst others.