The Democrats’ millennial cash cow is collapsing, as his business collapsed and 94% of his net worth was wiped out in an election in which he donated millions to liberal campaigns.
Sam Bankman-Fried, 30, known in online circles as SBF, is the founder and former CEO of FTX, a huge cryptocurrency exchange that collapsed last week after it failed. lacked the necessary funds to support users’ requests to liquidate their assets.
Among the supposed reasons for FTX’s underfunding was SBF’s misuse of billions of dollars in consumer investments, including its now-defunct $135 million purchase of the rights to name of the American Airlines Arena where the Miami Heat play. The 30-year-old also allegedly used user funds to fund risky bets through his trading company, Alameda Research.
Prior to the company’s embarrassing crash, SBF’s net worth was estimated at $16 billion – and $26 billion at its peak – and many in the crypto and banking world saw him as the next messiah. financial.
However, SBF’s outlook quickly darkened as his newly acquired fortune plummeted to less than $1 billion on election day – the biggest ever drop in a billionaire’s net worth, according to Bloomberg.
On Friday, FTX announced that it had filed for bankruptcy with its roughly 130 FTX Group companies — including Alameda Research — and that SBF was stepping down as CEO.
While the SBF’s seemingly self-inflicted financial loss is notable, the Democratic Party is also on the verge of losing one of its most valuable megadonors. The nearly $40 million the SBF gave to the Democratic Party for the 2022 midterms was the second largest donor in the world, according to Open Secrets, behind George Soros, who regularly pours more than $100 million into Democratic entities. during election cycles.
SBF was one of the first and largest driving forces behind new super democrat PAC Protect Our Future, who funded candidates who would “give our nation the best chance to ensure the devastation that has occurred as a result of the COVID-19 pandemic never happens again” , according to Politico.
Initially drawing comparisons to JP Morgan and Warren Buffett – although the latter has repeatedly expressed his skepticism cryptocurrency – SBF now looks set to bear more similarities to a convicted fraudster Elizabeth Holmes.
An anonymous source familiar with the massive crypto scandal Told The Wall Street Journal that the Securities and Exchange Commission and the US Department of Justice are currently investigating FTX, also claiming that the SEC has been studying the crypto exchange for months.
While there has been no confirmation from the SEC or the US Department of Justice regarding an ongoing investigation, it certainly seems like something is rumbling beneath the surface.
SBF, FTX co-founder Gary Wang, and FTX engineering director Nishad Singh are all currently under the supervision of local authorities in the tropical tax haven of the Bahamas, where the company is headquartered, according to Corner Telegraph.
The oversight is likely in response to media reports that the three executives, along with Alameda Research CEO Caroline Ellison, were seeking to flee to Dubai. After the company filed for bankruptcy on Friday, it was rumored that SBF fled to Argentina, although he has since refuse this claim.