FTX Files For Bankruptcy In The US, SBF Net Worth Down To $0

FTX Files For Bankruptcy In The US, SBF Net Worth Down To $0.

It has been a tumultuous week for one of the biggest crypto exchange in the world, FTX. Before they are known as the third largest crypto exchange in the world with one of the most influential CEO, Sam Bankman-Fried (SBF).

SBF has been called the next Warren Buffet of Crypto by Fortune magazine. However today, SBF has resigned from his position as CEO of FTX after failing to rescue the embattled crypto exchange. In a new press release on Twitter, FTX says it is filing for Chapter 11 bankruptcy w\\and John J. Ray III will be replacing SBF as CEO of FTX Group.

FTX Files For Chapter 11 Bankruptcy In The US

In the press release stated “ [FTX Group] have commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware in order to begin an orderly process to review and monetize assets for the benefits of all global stakeholders.”

New CEO John. J Ray III continued by saying, “The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders.”

“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness, and transparency.” Ray further stated.

Sam Bankman-Fried also gave out his optimism on his replacement John. J Ray III on handling the FTX Group, “Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US… This doesn’t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly, and can be consistent with other routes. Ultimately I’m optimistic that Mr. Ray and others can help provide whatever is best.”

Read More: Crypto Lender Genesis Trading Exposes a $175M of funds are Locked on FTX

SBF Net Worth Fall From $16 Billion To $0

Bloomberg’s Billionaire Index gave out their new report on Sam Bankman-Fried’s new net worth. When the news of FTX insolvency broke out, SBF quickly fall out out of the billionaire’s list, losing more than 90% of his net worth.

SBF Net Worth

Bloomberg placed a value of $1 to FTX following their collapse and this in turn resulted in SBF having a net worth of $0. His entire fortune of more than $16 Billion dollars has just disappeared in a matter of days and that is due to the worth of FTX valued today.

Additionally, according to Bloomberg, due to rumors that it was held through Alameda Research, Bankman-Fried’s  stake in Robinhood Markets Inc., which was worth more than $500 million, is not factorable. The FTX trading house is reportedly facing criticism, and it has been disclosed that $500 million will probably be kept as collateral.

Read More: Chain CEO Deepak Sells Massive NFT Collection Following FTX Collapse 

Bankman-Fried has been busy these past few days trying to raise money for FTX. First, Binance looked like they are going to acquire FTX before pulling back their offer after doing their due diligence.

Justin Sun has offered a small lifeline with FTX by allowing holders of TRX, BTT, JST, SUN and HT to swap assets from FTX 1:1 to external wallets but that seems to not worked out as well.

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