Bankman-Fried, who has reportedly lost over 94% of his net worth in just a few short days, has to deal with a federal probe into his failing companies.
The problems surrounding the collapse of crypto-trading firm FTX continue to escalate with an alleged « hack » now responsible for the disappearance of hundreds of millions — perhaps billions — of dollars worth of user funds. FTX, which was co-owned by « King of Crypto » Sam Bankman-Fried, filed for bankruptcy on Friday following a liquidity crisis and the collapse of a buy-out attempt by rival trading platform Binance. Initially, withdrawals were paused and customers were warned of the risks of putting any more money into the platform.
Now, Bankman-Fried, who has reportedly lost over 94% of his net worth in just a few short days, has to deal with a federal probe into his failing companies and an angry customer base that may have witnessed their savings evaporate. According to Reuters, Bankman-Fried transferred up to $10 billion of customer funds from FTX to Alameda Research, a trading company he also owns.
