Apparent crypto mogul Sam Bankman-Fried aka SBF and his FTX crypto exchange may not have been as financially strong as always presented themselves. After FTX users complained on Twitter about withdrawal issues, Binance CEO Changpeng Zhao aka CZ announced on Twitter that Binance had signed a non-binding LOI to bail out and acquire FTX, which had slipped into a liquidity crisis. SBF‘s image as a deep-pocket crypto mogul has probably suffered massive damage in the process.
In his tweet, CZ made it clear that this move was made to protect FTX users and arguably to avert harm to the crypto market as a whole. A collapse of FTX would probably have massive negative effects. Also, on the regulatory side. The prices of the leading currencies, Bitcoin (BTC) and Ether (ETH), plummeted after the CZ announcement.
Sam Bankman-Fried has vanished from the Bloomberg Billionaires Index after his estimated personal wealth plummeted nearly 94% to $991.5 million in a single day.