Sam Bankman-Fried, the disgraced creator of FTX, claims to have less than $100,000 in his bank account following the collapse of his cryptocurrency enterprise.
Monday’s statements were Bankman-first Fried’s attempt to explain his current personal riches under heavy criticism on his management of FTX’s finances. The company’s new executives have criticized Bankman-management Fried’s as they navigate a devastating bankruptcy.
“Am I permitted to utter negative numbers?” Bankman-Fried disclosed his personal finances to Axios. “I have absolutely no idea. I’m not sure. The last time I looked, my bank account contained $100,000.”
“It is difficult. “Pretty much everything I had was related to the corporation,” Bankman-Fried explained.
The pitiful number would represent a precipitous decline from Bankman-estimated Fried’s net worth of $16 billion before to FTX’s bankruptcy this month. Bloomberg valued FTX’s US branch at $1 and eliminated Bankman-$575 Fried’s million investment in the retail stock trading platform Robinhood from its calculations after Reuters reported that the interest was held by the bankrupt business Alameda Research.
FTX owes $3 billion to its top creditors.
As officials strive to recover FTX assets, they will continually assess Bankman-personal Fried’s fortune. According to a recent court filing, FTX owes its top 50 creditors a staggering $3 billion, while Reuters has previously reported that at least $1 billion in customer cash are still missing, and maybe much more.
According to Reuters, Bankman-Fried moved $10 billion in FTX customer assets in a fruitless attempt to support Alameda Research and its dangerous wagers. Alameda, the sibling firm of FTX, has subsequently ceased operations.
Earlier this month, Sam Bankman-net Fried’s worth was estimated to be about $16 billion.
CQ-Roll Call, Inc via Getty Imag
In her interview with Axios, Bankman-Fried did not answer bankruptcy court charges that the FTX founder ran the firm as if it were his “personal kingdom.”
FTX’s new legal team said that Bankman-Fried and his close colleagues at FTX plundered the company’s finances by spending around $300 million on Bahamas real estate, the most of which was spent on the purchase of mansions and beachfront property.
FTX is currently through bankruptcy procedures.
Separately, the Wall Street Journal stated that Bankman-Fried took out $300 million after FTX concluded a $420.69 million funding round last year. Bankman-Fried allegedly told FTX investors at the time that the money was a partial refund since he had purchased Binance’s interest in the company.
In recent years, Bankman-Fried has attempted to depict himself as a modest, T-shirt-and-shorts-wearing donor to progressive organizations and Democratic political candidates.
»Sam Bankman-Fried asserts that he has only $100,000 remaining in his bank account«