Sam Bankman-Fried, the Cryptocurrency Exchange, Filled Bankruptcy Decay in the U.S.
At the end of the ad, David learns about FTX, “a safe and easy way to get into crypto.” David thinks that he doesn’t think so. I am not wrong about this stuff.
FTX filed for bankruptcy proceedings in the United States on Friday, marking a stunning downfall for one of the biggest and most powerful players in the crypto industry. CEO Sam Bankman-Fried, the 30-year-old founder of the exchange, resigned.
The company said FTX was essentially beyond saving and that was the reason it backtracked on its earlier promise to explore a rescue.
Despite its reputation as a dependable, low-risk investment portal, FTX’s business appears to have been built on a complex, extremely risky kind of leveraged trading.
Based on net worth calculations by Bloomberg, Bankman-Fried was worth about $16 billion at the start of the week. He said that the collapse of FTX was one of history’s greatest ever destruction of wealth.
Bankman-Fried owns about 70% of FTX’s US business, which the index now estimates to be essentially worthless. His stake in online brokerage Robinhood, previously valued at more than $500 million, was removed from Bloomberg’s calculation after news reports said that stake was held through Alameda and may have been used as collateral for loans.
Bankman- Fried has tried to make as much money as possible in order to give away. But the fate of his philanthropic endeavors is now in doubt.