Sam Bankman-Fried, one of the world’s youngest billionaires, went from a net worth of $26 billion (11.4 trillion naira) to nothing in eight months (11 November 2022).
The massive Bankman-Fried losses stunned the world and were considered the worst destruction of wealth by an individual in history.
The Bloomberg Billionaire Index had in March 2022 ranked Bankman-Fried five places above Aliko Dangote, while Forbes, in its list of crypto billionaires, described him as “a crypto genius”.
Cryptocurrency platform FTX goes bankrupt in the United States, the boss resigns
Billions of fried bankers wipe out in hours
Bankman-fried is now poor despite having a net worth of over $16 billion a week ago. Credit: @backman
From billionaire to zero balance
Bankman-Fried is no longer a billionaire or millionaire after his cryptocurrency platform, FTX, filed for bankruptcy.
News of his company’s bankruptcy comes after Bankman-Fried stepped down as CEO, and he is currently worth zero and his name has been removed from Forbes and Bloomberg’s rich list.
A few months ago, Bankman-Fried’s fortune reached more than $26 billion, and his company, FTX, was worth up to $32 billion at the end of last year.
However, over the past few weeks, the value of the cryptocurrency has fallen sharply by more than 20%, ripping billions from investors’ accounts.
Bankman-Fried reacts
Bankman-Fried posted an update on his Twitter feed, which bed:
“It doesn’t necessarily mean the end of businesses or their ability to deliver value and funds primarily to their customers, and may be consistent with other avenues.
Nigerian crypto big boy offers to compensate traders with 221 million naira
“Ultimately, I’m optimistic that Mr. Ray and others can help deliver the best.
“I’m really sorry, again, that we ended up here. I hope things can find a way to recover. I hope it can bring them some transparency, trust and governance. In in the end, hopefully, it can be better for customers.
“I will work to clarify where things stand in terms of user recovery as soon as possible.
“I’m putting together all the details, but I was shocked to see things unfold the way they did earlier this week.
“I’ll be writing a more comprehensive play-by-play article soon, but I want to make sure I get it right when I do.”
“The Crypto Crash Has Cost Us Fortunes But We Still Have Hope,” Nigerian Traders Lament
In another report Legit.ng revealed that the first cryptocurrency, Bitcoin, has lost 52% of its value since the start of the crypto crash.
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Experts said the crash was partly due to the rebound in the US dollar and inflation, which caused many traders to engage in massive sell-offs, prompting many exchanges to suspend withdrawals.
Many traders in Nigeria are counting their losses as the crash continues unabated and Bitcoin’s market value plummets even faster.
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