Crypto Billionaire Sees 94% Of $16 Billion Net Worth Wiped Out In Just One Day

Sam Bankman-Fried, a leading name in the crypto industry, has just lost 94% of his net worth. Obviously, this goes beyond having a bad week.

By losing such a huge chunk of his money, the FTX CEO has experienced the largest loss in a single day by a billionaire.

For those in the crypto industry, Sam is a huge deal. He was the CEO of FTX, a currency exchange firm that has witnessed exponential growth recently, making him a lot of money.

At one point, the exchange had made him $26 billion.

As FTX grew, Sam started investing in different projects, including Robinhood Markets Inc. For those who have no idea what this company is about, their app was the reason behind the GameStop chaos.

Rumors had also started suggesting that Sam would be taking over Robinhood, which would have established him as a leader in the crypto industry.

Sam had the best of intentions since he wanted to invest his earnings back into the industry. He had also promised that his profits would be spent on charity and political causes.

Those plans may have been destroyed now that FTX is about to collapse following a liquidity crunch.

A liquidity crunch means that a company has a shortage of cash at a time when demand for it is high. The net effect is that a company's value plummets.

In FTX's case, Binance, which is operated by Changpeng Zhao, offered a deal to rescue the company. Zhao claimed on Twitter that FTX had asked Binance for help before mentioning that the company was facing "a significant liquidity crunch."

Although Zhao said that FTX had the power to get out of the deal at any time, he mentioned that Bankman-Fried's 53% stake in the company, which Bloomberg estimated was worth 6.2%, was at risk.

Unfortunately, that is not the only investment he could lose. Bankman-Fried also has $7.4 billion from his company, Alameda Research, which has lost its worth in the eyes of investors following FTX's troubles.

Basically, this means that FTX and Alameda Research now have a value of $1 each.

The two companies account for about 94% of Bankman-Fried's $15.6 billion net worth. Therefore, Bankman-Fried has had a pretty bad week.

However, he is still a billionaire, and his current net worth is about $1 billion. So, in comparison to most people, he is still doing pretty well for himself.