After FTX arrest, how borked is Sam Bankman-Fried’s net worth?

It’s ironic how wealthy net worths are frequently followed by legal charges, and what’s the point of having all those millions behind bars? Or even worse, what if money entirely vanishes? Sam Bankman-Fried, Co-Founder and Former CEO of FTX got arrested last Monday, December 12th in The Bahamas and was extradited to the United States.

Is always good to remember that money comes & money goes, yet when there are criminal charges we’re talking about, and cryptocurrency, money evaporates. Sam Bankman-Fried, the former CEO of crypto exchange FTX, woke up last Monday with a $16 billion dollar net worth. Nevertheless, as his crypto exchange, FTX, collapsed, the value of his assets reduced to zero. 

This recent case has been described by Bloomberg as: “one of history’s greatest-ever destructions of wealth”. Yet Bankman-Fried’s net worth wasn’t the only one affected. FTX exchange represents one of the most important digital asset platforms on the planet. Its debacle has certainly left at least a million investors in trouble. According to Sam, he did not attempt to commit fraud against anyone. But what happened?

How does money vanish?

As we mentioned, Sam’s current net worth leads to zero. However, due to the kind of currency he managed, his net worth was never actually stable. This year, his net worth topped $26 billion in spring, marking his peak. A few months later in July, he shared in an interview in July that he & FTX were still counting on a “few billion” in order to stabilize the industry.

Yet, it seems that those billion weren’t enough to solve their problems, since FTX filed for bankruptcy in November. Some days after the company’s collapse, Bankman-Fried used $10 billion in secret. This money was used in funds from users of the platform to prop up its lending business. The delicate situation here is that at least $1 billion is missing in depositors’ accounts.

Just like Anna Delvey, Elizabeth Holmes, and other figures that have been charged with fraud, FTX counted with several important investors. Only at the beginning of this year, FTX raised more than $ 31 billion in funds from Silicon Valley investors. And the fundraising would keep following in order to make the firm grow even more. 

Believe it or not, Sam Bankman-Fried even claimed himself an altruist. He once said his interest in raising more money was also to give it away. Currently, that statement is as sustained as his actual net worth. Please have in mind this will not only affect wealthy crypto investors but all bitcoin and other digital currencies users.

What’s next for Sam Bankman-Fried?

The United States & The Bahamas are combining forces to investigate all individuals who have been associated with FTX. In this precise moment, having something to do with it is automatically related to betraying public trust and violating the law.  Nevertheless, the captain will always sink deeper than their helpers, and 115 years in prison sounds pretty much like the bottom of the sea. 

The sentence hasn’t been determined yet, anyway, if Bankman-Fried’s eight different charges turn out to be true. Bankman-Fried is currently charged By federal U.S. prosecutors with two different counts of wire fraud and fraud conspiracy, as well as money laundering. Only the charges from this bach carry a maximum sentence of twenty years, for each one. 

Finally, Fried was charged as well with conspiracy to commit commodities fraud, and on the other hand, with conspiracy to commit securities fraud. We’re missing conspiracy to defraud the US as well as campaign finance violations, of which each charge carries a sentence of five years. Feel free to make numbers of Fried’s sentence & pray for crypto to maintain stability.