It is unheard of for a person with a net worth of $1.6 billion to go bankrupt in a matter of days with nothing in hand. That’s what happened to Sam Bankman-Field, co-founder of FTX Company. Sam was the crypto emperor. Sam has filed a bankruptcy petition after the company collapsed. At the time of the rise of the company, Sam’s assets had risen to 2600 crores. At the beginning of last week, Sam’s assets were 1.6 billion dollars, according to Reuters.
Sam’s loss of 94 percent of his assets has shocked the entire crypto world. International media is calling it the biggest financial ‘disaster’ in crypto history. With this, Sam Bankman resigned as CEO and filed a bankruptcy petition. The main reason for the current crisis is the collapse of Almeda Research, the trading platform under the company. On November 2, CoinDesk had reported the crisis in Almeida.
After the massive financial crisis, FTX asked some companies for help, but a sudden fall could not be avoided. Meanwhile, Binance had announced that it would acquire FTX, but later they also withdrew. With this, the assets of Sam and the company fell sharply. After allegations of investment irregularities, US agencies began investigating FTX.
Crypto token FTT investors started withdrawing as the company was heading towards a major crisis. With this, the value of FTT fell by 72 percent. With this, on November 10, FTX announced that all transactions have been suspended. There are reports that Almeida used the money deposited by customers trusting FTX for other purposes and this is the beginning of the problems. Bloomberg reports that FTX paid almost $1000 million to Almeida. In 2019, Sam started the crypto exchange company FTX together with Gary Wang, who was a Google employee.