The Fall of the 'Warren Buffett of Crypto'... FTX Founder Leaves Behind 66 Trillion Won Debt

‘Cool Trader’ Image Attracts Tens of Trillions in Investment Within 2 Years of Establishment
Industry Backlash Over Crypto Regulation Support... Binance CEO Accuses “Secret Hostile Lobbying”

Sam Bankman-Fried, founder and CEO of FTX, who recently expressed his intention to resign. Photo by Reuters Yonhap News

[Asia Economy Reporter Sumi Hwang] Sam Bankman-Fried, the founder and CEO of cryptocurrency exchange FTX, who plunged the company into a liquidity crisis, has tendered his resignation. The industry was shocked as he, once hailed as the "Warren Buffett of the crypto world," fell from grace overnight.

On the 11th (local time), FTX announced on Twitter, "CEO Bankman-Fried has resigned, and John J. Ray III has been appointed as the new CEO." This announcement came alongside news that FTX, facing a liquidity crisis due to a massive withdrawal incident, filed for bankruptcy protection with the largest debt in the cryptocurrency industry’s history, reaching up to $50 billion (approximately 66.2 trillion KRW).

Bankman-Fried was recognized as a young and famous entrepreneur, often called the "JP Morgan of crypto" or the "Warren Buffett of crypto." He founded the cryptocurrency exchange FTX in 2019 and raised tens of trillions of won in investment funds in just over two years.

FTX’s aggressive strategy became prominent as it began to chase industry leader Binance by outpacing competitors and attracting investors.

According to the WSJ, Bankman-Fried fully leveraged his "cool trader" image. He branded himself by appearing at various events wearing FTX-logoed T-shirts and loose shorts. This approach gained significant popularity, helping to attract investments from major players such as Temasek, one of Asia’s largest sovereign wealth funds, WSJ explained.

He also poured substantial money into promoting FTX. Last year, Bankman-Fried purchased the 19-year naming rights for the Miami Heat’s home arena in the NBA for $135 million (approximately 178 billion KRW), renaming it the "FTX Arena." In February this year, he bought the most expensive Super Bowl advertisement in the world for the NFL finals. The 30-second ad spot during the Super Bowl broadcast reportedly costs $7 million (approximately 920 million KRW).

However, Bankman-Fried later sparked backlash in the industry by engaging in unpopular behavior during political lobbying and supporting cryptocurrency regulations in the U.S. political sphere.

WSJ pointed out that he suffered a critical blow from Binance, an early investor and rival. On the 7th, Binance CEO Changpeng Zhao publicly declared that Binance would dispose of FTT, the coin issued by FTX. This announcement fueled FTX’s liquidity crisis and led to a cryptocurrency crash. On the same day, Zhao directly criticized Bankman-Fried on Twitter, stating, "Binance cannot support those who conduct hostile lobbying behind other players' backs."

Subsequently, FTX, pushed to the brink of bankruptcy, swallowed its pride and sought help from Binance, but Binance refused. Ultimately, Bankman-Fried sent a message to employees apologizing deeply for the situation reaching this point and took responsibility for the bankruptcy by stepping down as CEO.

This content was produced with the assistance of AI translation services.