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FTX CEO Lost 14.6 Billion Dollars Because Of 1 Mistake

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1

After his wealth fell to nearly 94%, Sam Bankman-Fried, CEO of FTX, disappeared from the Bloomberg Billionaires Index.

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2

Changpeng Zhao, Binance CEO, announced that he had signed a provisional agreement for the FTX acquisition. 

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3

This was in response to concerns about the exchange's apparent insolvency in the Bahamas. 

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4

The announcement led to a slowdown of withdrawals and a freefall in the price of FTX's native token.

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5

Bankman-Fried's company was valued at $15.2 billion before the cash crunch. Bloomberg reports that $14.6 billion was lost overnight. 

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6

Bankman-Fried, a self-described "effective altruist", made considerable promises to give the bulk of his fortune, 

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7

Valued at $21billion at the time, to charity earlier this year. He also pledged to donate up to $1B to political candidates 

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8

Although Bankman-Fried spent $40 million in advance of the midterm elections, with only middling success, he later backtracked from his promise. He called it "a dumb quote."

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