FTX collapse: BlockFi sues a Bankman-Fried company

The disgraced Jewish king of crypto Sam Bankman-Fried was not named as a defendant in BlockFi's complaint.

  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. (photo credit: FTX/Handout via REUTERS)
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.
(photo credit: FTX/Handout via REUTERS)

Cryptocurrency lender BlockFi Inc has sued a holding company for FTX founder Sam Bankman-Fried, seeking to recover collateral pledged three weeks ago, before BlockFi and failed cryptocurrency exchange platform FTX filed for bankruptcy protection.

BlockFi in a complaint filed on Monday in New Jersey bankruptcy court said Emergent Fidelity Technologies Ltd has defaulted on its obligations under a Nov. 9 pledge agreement.

 Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph (credit: REUTERS) Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph (credit: REUTERS)

Who is the Jewish king of crypto Sam Bankman-Fried? 

Bankman-Fried, who was not named as a defendant in the BlockFi complaint, was once known as the king of crypto, with his FTX cryptocurrency exchange making him a billionaire and putting him on top of the market.

And seemingly overnight, it all came crashing down – along with his net worth.

 But who is the 30-year-old cryptocurrency wunderkind, and where is he now? 

Bankman-Fried hails from an upper-middle-class family of Jewish academics and grew up steeped in higher education.

 Starting out his career at Jane Street, SBF opened up the Alameda Research trading firm and soon got into the cryptocurrency game.

 By late 2018, Bankman-Fried opened up the FTX cryptocurrency exchange. 

 Based in the Bahamas, FTX achieved renown as one of the most stable and reliable players in the crypto field.

 In his position, SBF made use of his assets for what he described as Effective Altruism, bailing out ailing digital asset firms and donating his money, including to many causes aligned with the Democratic Party. 

At his peak, SBF's crypto investments and business activities proved to be incredibly profitable. Estimates had placed SBF's net worth at $26 billion at his peak, though he averaged around $10-$16 billion in October.

 Despite this, SBF famously eschewed most material pleasures associated with the super-rich, having little in the way of physical material assets like fancy cars, clothes or jewelry.

 But everything changed come November when FTX came crashing down.

 This happened on November 8 when Binance, the world's largest cryptocurrency exchange, announced it would try to purchase FTX, which had undergone a liquidity crisis after the firm sold its holdings in the FTX token FTT, completely tanking the token's worth. By November 9, Binance pulled out.

 By the end of it all, SBF lost his billionaire status. SBF made a new record for the Bloomberg Billionaires Index, which said that his net worth dropped by 94% in just a single day, plummeting to a mere $991 million, though current estimates say he has no material wealth whatsoever and a net worth far closer to 0.

 He resigned as CEO of FTX, which has since declared bankruptcy. 

 FlightRadar24 claims that Bankman-Fried had fled to Argentina, but he reportedly has insisted he's in the Bahamas. 

 Currently, SBF and other executives from FTX are being watched by the Bahamanian authorities. However, the fintech news outlet Cointelegraph claims that Bankman-Fried may be trying to flee to Dubai.

Billionaire entrepreneur and Dallas Mavericks owner Mark Cuban believes Bankman-Fried should be worried about ending up in prison, Fortune reported on Sunday.