In recent interviews, Sam Bankman-Fried, the founder of the infamous crypto exchange FTX, has spilled quite a bit of tea.
The man once known as the crypto mogul has revealed that he has lost almost all of his wealth.
SBF told Axios that the last time he checked his bank account, it held $100,000.
This represents a more than 99% drop in his net worth, which was once estimated to be more than $16 billion prior to the collapse of FTX. Furthermore, the former FTX CEO’s fortune peaked at nearly $26.5 billion at one point.
This, however, came crashing down because the majority of it was linked to FTX. SBF stated,
“It’s complicated. Basically everything I had was just tied up in the company.”
“Regulation and proper oversight,” according to the former billionaire, would have prevented FTX’s demise.
SBF also stated that “conflicts of interest” should have been handled by another person. This remark was unrelated to the recent bankruptcy hearing.
SBF then made even more shocking revelations in two interviews with Tiffany Fong. He claimed to have made “dark” contributions to Republicans here.
Notably, SBF had already contributed millions of dollars to political causes. He even intended to invest an additional $100 million in the 2024 elections.
SBF stated that the events that led to the demise of FTX were a culmination of several events. He stated,
“the crash in the spring that took 50% out of asset values, combined with a hyper-correlated crash scenario this month in which simultaneously we saw a 50% decline in relevant asset prices over a two-day period, combined with a complete run on the bank on FTX (…)”
Furthermore, SBF stated that FTX had a 50% chance if Binance’s CEO, Changpeng Zhao, had not expressed concerns. He stated,
“Things would certainly be a lot more stable and there’s a lot more ability to generate liquidity and there would still be too much margin in the system (…) I don’t know for sure I think like 50-50”