It all started in the back of 2017, when SBF was just a twenty-five-year-old, who made a decent amount of money by doing crypto arbitrage by selling bitcoin for $15,000 on Korean Exchanges where it only cost him $10,000 in the US, (because of the huge demand of bitcoin in Korea), with a crypto trading firm called Alameda, he co-founded. The news article by Yahoo indicates SBF as someone with Robinhood-like personality. He already donated $285 million to several charities and owns a charity of his own. Back then, SBF was a hero and idol for many, or at least for me.
Young SBF is a guy listed on “Forbes 30 under 30” and “2nd Richest Guy on Crypto” as of 2021 right after Brain Armstrong, the CEO of Coinbase. And it all went down to only less than $100k in his pocket with the crash of FTX. Now, he has been a headline and an important news for how his company FTX heavily shared their users' funds to its’ partner company Alameda and it’s all responsible for the crash.
Fall of SBF:
Solana, the cryptocurrency heavily backed by SBF, is caught to have drop its’ price by 62.3% as noted in early November. It also impacted on the price of Near Protocol as ‘Alameda Research’ was one of their key investors. The problem arose in the beginning of the November 2022 where FTX started seeing huge amount of withdrawals. Unexpectedly, the crash happened and SBF filed for Bankruptcy. The overall market stayed bullish as the result of crash.
His net worth dropped by whooping 94% from $10.5 billion to $630 million in a single day and this is reported to be the biggest single day drop-down in the history and now he has somewhere less than $100k in his balance. Yeah, and the recent news is that he has been caught from his apartment in the Bahamas.
Changpeng Zhao On His Tweet:
CZ indicated on his tweet that the majority of holdings of SBF and Alameda were in FTT, as BINANCE received $529 million worth of FTT for selling. FTX didn’t have enough reserve funds backed and all its’ funds were on to its token FTT which fall down by a massive 95.1% trading at just $1.4 a token for now, which before collapse was trading at $25 per token.
This is just a beginning of a collapse. And experts predict the collapse of multiple exchange (centralized ones) [Read more about non-custodial/ Decentralized wallets here] to be somewhere nearby.
