How Sam Bankman-Fried, Fall from a Billionaire Opens Questions About His $10Bn ‘Secret’ Transfer to Girlfriend
- Customers with trapped funds worth over $2 billion are asking questions about how a company doing so well went bankrupt
- FTX was founded in 2019 by two smart young men Sam Bankman-Fried and also ex-Google employee Gary
- The company is broke, and the founders also broke, but there are questions on why Bankman made a transfer of $10bn to a company managed by his girlfriend
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In the last few days, news of the collapse of FTX, a crypto exchange, has reverberated worldwide.
Dailymail reports that about $2 billion of customer funds vanished with the sudden collapse.
Founder and CEO Sam Bankman-Fried was also severely hit as he lost his status as a billionaire.
Source: UGC
However, new information has emerged about what happened prior to the collapse and how it occurred.
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FTX founder, Sam Bankman-Fried, who lost his fortune says he will speak about what happened
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Reuters reports that at the heart of FTX's problems were losses at Alameda Research, which is run by his girlfriend, Caroline Ellison.
It was revealed that before the problem started, Bankman-Fried made a secret transfer of $10 billion of customer funds from Alameda.
Bankman-Fried confirmed to Reuters that the transaction occurred but insisted that it was not secret.
CNN revealed that a large portion of that total has since disappeared, with one source putting the missing amount at about $1.7 billion.
Caroline Ellison's biography, networth
Report has it that Caroline Ellison has a mathematics major and was born in 1994 to two esteemed academics.
She started her trading career at Jane Street - a New York-based trading firm in 2018.
She then moved to Alameda Research in 2020 after meeting FTX founder - and fellow Jane Street alumni - Sam Bankman-Fried.
Ellison reportedly described the opportunity as “too cool of an opportunity to let go.”
Over the next two years, Ellison rose to the rank CEO, and said the stint offered her insights into how companies work,
Were Caroline Ellison and Sam Bankman-Fried dating?
Ellison is widely thought to be part of Bankman-Fried's inner circle.
According to a CoinDesk report, she was among the nine people living with the tycoon in a luxury penthouse in the Bahamas where FTX is based.
The other housemates include FTX co-founder, Gary and FTX Engineering Director, Nishad Singh.
The outlet believes Ellison and Bankman-Fried dated at one stage, citing those close to the FTX hierarchy.
What is Caroline Ellison's net worth?
Ellison’s net worth is estimated to be around $ 15 million as of November 2022.
Most economists believe her wealth is tied to a highly profitable trading firm.
But at the time of writing, it's unknown how her net worth has been affected by the subsequent collapse of FTX.
Crypto billionaire richer than Dangote 8-months ago now poor, begs
Legit.ng had earlier reported on Sam Bankman-Fried, one of the world's youngest billionaires, fall from grass to grace.
At the peak of his wealth, he was ranked higher than Aliko Dangote on the Bloomberg billionaire powerful list.
However, in the last few months, he has lost all and is completely broke as his major source of wealth filed for bankruptcy.
Source: Legit.ng
