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From $16 billion to zero: Dem Megadonor Sam Bankman-Fried lost all his money

By on November 11, 2022 0

The crypto scion had pledged to donate $1 billion to Dem campaigns

Sam Bankman-Fried (Reuters)

• November 11, 2022 4:00 p.m.

The net worth of crypto scion Sam Bankman-Fried, who this year pledged to donate $1 billion to Democratic campaigns, is $0.

After his cryptocurrency company FTX declared bankruptcy and Bankman-Fried resigned as CEO, the Democratic megadonor lost his entire $16 billion fortune.

The loss is one of the biggest net worth destructions of all time, Bloomberg reported:

The fall of his crypto empire – which filed for bankruptcy on Friday with his resignation – means that the assets held by the tycoon once compared to John Pierpont Morgan have become worthless.

At the peak, the 30-year-old was worth $26 billion, and he was still worth almost $16 billion at the start of the week.

The Bloomberg Billionaires Index now values ​​the U.S. business of FTX, of which Bankman-Fried owns about 70%, at $1 due to a potential trading halt, down from $8 billion in a fundraising in January.

On Thursday, Bankman-Fried philanthropic aides quit, according at Puck News. They wrote a letter saying FTX management “may have engaged in deception or dishonesty.”

“We are no longer able to perform our work or process the grants, and we have fundamental questions about the legitimacy and integrity of the business operations that funded the FTX Foundation and the Future Fund,” the letter reads. “As a result, we resigned earlier today.”

Bankman Fried was a friendly face at the White House, attending meetings just a few months ago. The Securities and Exchange Commission and the Commodity Futures Trading Commission are currently investigating FTX for allegedly mishandling client funds.