Sam Bankman-Fried, or SBF, known as the cryptocurrency genius, has made the headlines recently.
SBF on Friday announced his resignation from FTX after facing a loss of 94 per cent of his net worth. The announcement was made on the company’s Twitter handle.
The “cryptogenius” also known as “modern JP Morgan” for his intervening to save volatile exchanges now faces, the impending prospect of the collapse of his company.
According to Fox News, the now-bankrupt founder of FTX, was a generous supporter of Democratic candidates and liberal causes, contributing at least $38 million to left-wing organisations during the 2022 election cycle.
Who is SBF?
Sam, 30, began his career as a trader at Jane Street and eventually amassed a crypto empire.
SBF studied Physics at MIT, and three years later after joining Jane Street, in 2017, he learned about cryptocurrencies and began using his expertise in the market. In his early day, he started by purchasing bitcoin in the US and used to sell them in Japan, a minimum price of at least 10 per cent due to price difference.
IN 2017, SBF established his own cryptocurrency trading firm ‘Almadea Research,’ which offers liquidity in exchange for digital assets and cryptocurrencies.
Two years later, in 2019, he launched FTX, turning it to be one of the top exchanges for buying and selling cryptocurrency derivatives. Forbes estimates his exchange is worth $40 billion.
Watch | Binance walks away from FTX deal due to ‘mishandled funds’
Fried has designated himself as a ‘selfless altruist,’ who pledged to give the majority of his wealth to charity. Additionally, promised to provide billion-dollar support to US candidates to take precautions against pandemics. However, Cointelegraph reported that he till now has only donated only 0.1 per cent of his wealth.
Fried’s exchange worth fell drastically by 94 per cent in a single day, as reported by the Bloomberg Billionaires Index. His net worth was nearly $15.5 billion prior to this announcement of the company’s financial crisis. The worth dropped to $991.5 million as of late Tuesday.
Trouble for FTX
Concerns of liquidity issues in Alameda and FTX began in 2022.
The cryptocurrency platform FTX has recently filed for Chapter 11 in the US, as per the statement released.
The drama in the world of digital currencies began after the largest cryptocurrency platform Binance said that it will sell its stock in the company, Binance eventually backed out of the agreement leaving the firm to acquire nearly $9.4 billion from investors. Investors sold FTT, FTX’s tokens as a result.
(With inputs from agencies)
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