Crypto billionaire Sam Bankman-Fried’s net worth could decline by more than $13 billion

Sam Bankman-Fried, crypto billionaire and chief executive of digital asset exchange FTX, could see his net worth decline by more than $13.6 billion if Binance’s proposed acquisition of FTX is completed, according to an estimate by Bloomberg.

Bankman-Fried was estimated at $15.6 billion before the Binance takeover, according to Bloomberg Billionaires Index.

On Tuesday, Changpeng Zhao, co-founder and chief executive of Binance, said the exchange had signed a letter of intent to acquire FTX’s non-US assets, after the latter had “requested help” amid a shortage of cash.

Lily: Bitcoin drops to two-year low after crypto exchange Binance offered to buy rival FTX

Terms of the agreement were not disclosed, and representatives for Binance and FTX did not respond to MarketWatch’s request for comment on this story.

Bankman-Fried, a 30-year-old Massachusetts Institute of Technology graduate, quickly amassed his fortune of billions in just five years in crypto, through his digital asset trading house Alameda Research and FTX exchange. It has been referred to by some industry players as the crypto version of JP Morgan JPM,
after his companies offered lines of credit or equity to some struggling companies like BlockFi and Voyager on several occasions this year.

Of Bankman-Fried’s more than $15.6 billion in wealth, $6.22 billion comes from FTX, the company that may soon be sold to Binance, according to Bloomberg Billionaires Index. His stake in Alameda was valued at around $7.4 billion, according to Bloomberg.

All existing FTX investors, including Bankman-Fried, Softbank Vision Fund, and Temasek, among others, could be wiped out by the Binance takeover, according to Bloomberg. Meanwhile, as FTX’s liquidity problems stemmed from its connection to Alameda research, Bankman-Fried’s stake in the latter could also be worthless, Bloomberg noted.

See: Despite $11 million in donations from Sam Bankman-Fried, Founder of FTX, Carrick Flynn loses big in Oregon primary

See also: The 5 Most Influential Players In The Crypto Market In The Year That $2 Trillion Was Wiped Out

Bankman-Fried also has around $1.99 billion of his wealth tied to the US branch of FTX, but that branch of FTX is not part of this most recent deal with Binance. It is unclear to what extent the Binance deal would impact the valuation of FTX.US.

Bankman-Fried is also a key stakeholder in financial services firm Robinhood Markets Inc. HOOD,
representing over $677 million of his net worth. It has liabilities of around $650 million, Bloomberg noted.

FTX’s native FTT token has fallen over 75% in the past 24 hours to around $5.42, according to data from CoinMarketCap.

Zhao — a Chinese-Canadian executive commonly known as “CZ” — founded Binance in 2017. The company has become the world’s largest crypto exchange by 24-hour trading volume, compared to FTX, which ranks third, according to CoinMarketCap.

“It is clear that FTX did not enter into this agreement with Binance from a position of strength,” according to Ryan Shea, crypto economist at Trakx.

See also: Matt Damon’s “Fortune Favors the Brave” ad is now one year old. Here is how much you would have lost if you had bought crypto then.

The news around FTX comes amid an extended crypto winter. BitcoinBTCUSD,
the price briefly fell to its lowest level in two years on Tuesday. The price of ether ETHUSD,
was down 15% on Tuesday and down 60% over the past year.

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