Global cryptocurrency exchang FTX announced on Friday 11 November 2022, that it has commenced Chapter 11 bankruptcy proceedings and that its former billionaire CEO, Sam Bankman-Fried, has resigned from the company following a liquidity crisis that forced a sudden unraveling of the exchange at one point worth $32 billion. Following FTX’s collapse, Bankman-Fried was pulled from Forbes’ billionaire ranks.
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The company hit a major financial crisis after users began withdrawing their investments from FTX at a rapid pace. FTX was launched in 2019. 30 year old Sam Bankman-Fried who was considered a crypto wunderkind until the loss of his fortune has resigned as CEO of the company and reports have it that he's currently holing up in The Bahamas. Before his bankruptcy declaration, Bankman-Fried was worth an estimated sum of $26 billion and his net worth was estimated to have dropped 94% in a single day. Before Bankman-Fried lost his wealth on 11 November 2022, he was a major donor to the Democratic Party and many left-wing political causes. Bankman-Fried was the second-largest individual donor to Joe Biden in the 2020 election cycle, personally donating $5.2 million.
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