Sam Bankman Fried

Crypto Billionaire Sam Bankman Fried Loses 94% of Wealth Overnight

It is been reported that the single day drop in Sam Bankman’s net worth was the biggest during the wealth of a billionaire.

The crypto millionaire and owner of FTX crypto exchange, Sam Bankman Fried, just lost about 94% of his wealth. Within a single day, all $16 billion disappeared, making it the biggest major wealth collapse a billionaire has ever taken in day.

On Tuesday, FTX announced that it was being sold to Binance amid a crypto liquidity crunch. Sam Bankman has a 53% stake in FTX, which amounts to about $6.2 billion. In addition to that, his crypto trading business Alameda Research came up with an additional $7.2 billion in revenue from its crypto trades.

Following the acquisition news, the investors and analysts did not like the idea that FTX and Alameda were now valued at $1. The overall net worth of Bankman crashed from $10 billion to $932 million.

Fortune Magazine has once referred to him as the next Warren Buffett, but it’s his two major assets that have made him worth $1 billion.

It is not uncommon for a billionaire to experience severe wealth losses from devaluation. Mark Zuckerberg, the CEO of Meta lost $29 billion in one day as did Elon Musk. However, they still held large portions of their wealth unlike Bankman who only has $1 billion now.

Apart from FTX and Bankman, crypto-based businesses are also struggling in the wake of the crypto crash. It has been reported that losses incurred by the world’s largest crypto exchange, Binance, resulted in a $79.4billion drop.

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