FTX Founder Files For Bankruptcy, Owes $650 Million

FTX Founder Files For Bankruptcy, Owes $650 Million

Jail? Fleeing to another country? Being bought out? What is in store for FTX and its founder?

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BREAKING: Sam Bankman-Fried, commonly referred to as SBF, has just filed for bankruptcy and personally owes lenders over $650 Million.

In less than 48 hours, the FTX founder and once prodigy child and touted king of crypto has gone from a $16 billion net worth, to practically broke. FTX faces a liquidity shortfall of up to $8 Billion, SBF told investors Wednesday. FTX is seeking emergency funding to meet withdrawal requests. 

Binance chief Changpeng ‘CZ’ Zhao has suddenly withdrawn his offer to buy Sam Bankman-Fried’s beleaguered FTX exchange.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of http://FTX.com,” tonight’s statement read.

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.

“Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient, and we believe in time that outliers that misuse user funds will be weeded out by the free market.

“As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.”

SBF probably wishes he had the $5.2 million back that was donated to President Biden’s campaign.SBF is the sixth-largest political donor, according to Open Secrets, a website that tracks political spending. According to the site, he has contributed $39.8 million in total for the cycle 2021–2022.

92% of that total have gone to Democratic candidates and campaigns, and the remaining 12% to Republican ones. In the current cycle, FTX co-CEO Salame has donated $23.6 million to Republican campaigns, favoring the red side of the political spectrum.

We will have to wait and see if SBF is saved, or if he will have a greater fall than the likes of Theranos.

Sam Bankman-Fried assured his Twitter followers that everything was fine and that customer asset were secure about a day before his cryptocurrency exchange, FTX, crashed.

“FTX has enough to cover all client holdings. We don’t invest client assets (even in Treasuries),” he stated in a letter sent on Monday, adding that his company would redeem any funds deposited to customers’ trading accounts if they choose to leave.

In other words, don’t worry—your money is safe. Or so he says – or rather- said.

There is now nothing left but a blank page with the message, “Sorry, that tweet has been erased.”

 

Liam Fegan
Liam Fegan
Lockheed Martin Financial Analyst since June of 2018. If you want a better life, raise your standards and don't compromise them.
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