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Bloomberg removed Sam Bankman-Fried from billionaire list


Aug 17, 2022

Bloomberg removed Sam Bankman-Fried from billionaire list

Overnight, the fortune of FTX cryptocurrency exchange founder Sam Bankman-Fried plummeted 94%, from $15.6 billion to $992 million, due to the platform’s liquidity crisis. Bloomberg stripped him of his membership in its list of billionaires.

According to the agency, it is the largest drop in capital among billionaires in the history of the index.

Bankman-Fried owns 53% of the shares of FTX, which was previously estimated at $ 6.2 billion, as well as the company Alameda Research valued at $ 7.4 billion. According to analysts, because of the problems of the latter, FTX investors, including Bankman-Fried, faces a complete loss of assets after their purchase by the exchange Binance.

In particular, the crisis could affect Softbank Vision Fund, Singapore’s Temasek Wealth Fund and the Ontario Teachers Pension Fund, which in January invested $400 million in the exchange at a valuation of $32 billion.

At the same time, the problems of the main platform should not potentially affect the U.S. division of FTX.US. It is a fully independent legal entity, capitalization of which at the beginning of 2022 reached $ 8 billion.

Recall that on November 6, CEO of Binance Changpeng Zhao said the company aims to get rid of the utility-token FTX (FTT). Assets together with BUSD totaling ~$2.1 billion were the result of the company’s withdrawal from a portfolio investment in FTX.

On November 8, amid fears about the exchange’s financial stability, FTT’s quotation fell almost 30%. At the same time, bitcoin price failed at the $20,000 level, pulling the entire market with it.

Later, Bankman-Fried and Zhao announced a strategic https://gagarin.news/news/bsc-hack-what-is-known-so-far/ partnership. It is designed to solve the liquidity crisis and involves a possible takeover of FTX by the Binance exchange.

Read about the impact of the standoff between Binance and FTX on the cryptocurrency market in a special ForkLog article.

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