The crypto star faces scrutiny after the collapse of his $32 billion company.
November 19, 2022, 5:59 AMSamuel Bankman-Fried, founder and CEO of FTX, testifies during a Senate Committee on Agriculture, Nutrition and Forestry hearing about"Examining Digital Assets: Risks, Regulation, and Innovation," on Capitol Hill in Washington, DC.of $32 billion cryptocurrency exchange FTX, like other scandal-ridden corporate failures, has yanked a once-celebrated executive into the harsh light of public scrutiny.
Lately, however, he faced withering questions over the mismanagement of billions in customer funds. Meanwhile, his net worth plummeted from $16 billion to $0 in less than a week, according to an estimate fromConcerns of financial instability at FTX -- a top platform where users buy and sell crypto -- triggered a wave of customer withdrawals totaling billions of dollars. But FTX lacked sufficient funds to pay sellers, instead imposing a halt on withdrawals altogether.
He attended an elite prep school, where he excelled academically, spending his leisure time playing video games like League of Legends and the card game Magic: The Gathering, according to aFormer FTX CEO Sam Bankman-Fried poses for a picture, in an unspecified location, in this undated handout picture, obtained by Reuters on July 5, 2022.
Almost immediately, he spotted an arbitrage that could deliver massive returns: Bitcoin was trading 10% higher in Japan than it was in the U.S. If Bankman-Fried could buy large amounts of the popular token in the U.S. and sell them in Japan, he stood to make a handsome profit.
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