Disgraced FTX founder Sam Bankman-Fried claims to have just $100,000 in his bank account. The explosion of his cryptocurrency empire.
Monday’s comments marked Bankmann-Fried’s first attempt to explain his current personal wealth amid intense scrutiny over his handling of FTX’s finances. The company’s new leaders have slammed the bank’s management for leading it into a disastrous bankruptcy.
“Am I allowed to say a negative number?” Bankman-Fried told Axios Regarding his personal finances. “I mean, I have no idea. I do not know. Last time I checked I had $100,000 in my bank account.
“It was complicated. Basically everything I had was tied up in the company,” Bankman-Fried added.
The paltry amount would be a dramatic drop from Bankman-Fried’s estimated net worth of $16 billion before FTX collapsed this month. Bloomberg kept FTX’s US branch is valued at just $1 and removes Bankman-Fried’s $575 million stake in retail stock trading platform Robinhood from its calculations.
The extent of Bankman-Fried’s personal wealth will face constant review as authorities seek to recover the FTX funds. In a recent court filing, FTX said it owed $3 billion to its top 50 creditors, while Reuters previously reported that at least $1 billion in customer funds — and more — were missing.
According to Reuters, Bankman-Fried secretly transferred $10 billion to FTX client funds in an unsuccessful attempt to shore up Alameda Research and its risky bets. FTX’s sister company Alameda later closed.
Bankman-Fried’s interview with Axios did not address the bankruptcy court’s claims that the FTX founder ran the company. His “personal incivility”.
FTX’s new legal team accused Bankman-Fried and his close associates at FTX of looting the company’s coffers and spending $300 million on Bahamas real estate — much of that money used to buy mansions and beachfront properties.
Separately, Bankman-Fried cashed in $300 million last year after FTX closed a $420.69 million fundraising round, according to the Wall Street Journal. At the time, Bankman-Fried allegedly told FTX investors that the money was a partial refund because it had bought shares in rival platform Binance.
Charges against Bankman-Fried’s efforts to portray herself as a humble, T-shirt-and-shorts-wearing philanthropist for progressive causes and Democratic political candidates have lessened in recent years.