According to details Sam Bankman’s net worth drop was the biggest single day drop in the wealth of a billionaire
Crypto billionaire and the owner of FTX crypto exchange ‘Sam Bankman Fried’ just lost about 94% of his wealth, bringing it down from $16 billion to just $1 billion. All this wealth decline happened in just one day making it the biggest wealth collapse a billionaire has taken in a day.
But how did this all happen? Well, Sam Bankman on Tuesday announced that his crypto exchange FTX was being sold to Binance amidst a severe liquidity crunch. Bankman has a 53% stake in FTX which amounts to $6.2 billion whereas another addition of $7.2 billion came from his crypto trading business known as the Alameda Research.
Soon after the acquisition news broke out, the valuations started decreasing, and the perceived worth of both FTX and Alameda research went down to $1 each, crashing Bankman’s net worth.
Once regarded as the next Warren Buffet by Fortune Magazine, Sam Bankman now holds two major assets that value him at $1 billion.
This was not the first time a billionaire had to go through severe wealth losses because of devaluation. Mark Zuckerberg, the CEO of Meta just recently lost $29 billion in one day, similarly Elon Musk, lost about $50 billion after a Tweet. Both Zuckerberg and Musk however were still holding large portions of their wealth unlike Bankman who is only valued at $1 billion now.
Apart from Bankman and his firm FTX, other crypto firms are also going through a tough time amidst the crypto crash. Binance, the world’s biggest crypto exchange, suffered a loss of $79.4 billion as a result of the crash.