Crypto’s Golden Boy: The Fall Of Sam Bankman-Fried Whose $16 Billion Fortune Evaporated
Sam Bankman-Fried woke up on Monday still a billionaire, even as his cryptocurrency empire was beginning to unravel. By Friday, his fortune was completely wiped out.
Based on net worth calculations by Bloomberg, Bankman-Fried was worth about $16 billion at the start of the week. But as his crypto exchange, FTX, collapsed, the value of his assets was reduced to zero in what Bloomberg called “one of history’s greatest-ever destructions of wealth.”
Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, Aug 17, 2022.
Crypto is in chaos as FTX files for bankruptcy
FTX on Friday said it filed for bankruptcy, and Bankman-Fried, known as SBF, resigned as chief executive.
The 30-year-old entrepreneur’s net worth, which was largely tied up in digital assets, peaked at around $26 billion this spring. Over the summer, as crypto prices plummeted, Bankman-Fried emerged as a white knight for the sector, using his FTX exchange and its sister hedge fund, Alameda, to secure lines of credit to crypto companies like BlockFi and Voyager that were at risk of collapsing.
He told Reuters in July that he and FTX still had a “few billion” on hand to shore up other firms and help stabilize the industry.
Bankman-Fried owns about 70% of FTX’s US business, which the index now estimates to be essentially worthless. His stake in online brokerage Robinhood, previously valued at more than $500 million, was removed from Bloomberg’s calculation after news reports said that stake was held through Alameda and may have been used as collateral for loans.
As a follower of “effective altruism,” Bankman-Fried has sought to make as much money as possible in order to give it away. But the fate of his philanthropic endeavors is now in doubt.
On Thursday, the entire staff of the FTX Future Fund, which says it has committed $160 million in grants, publicly quit. In a statement, the five-person team wrote that they “have fundamental questions about the legitimacy and integrity of the business operations that were funding the FTX Foundation and the Future Fund.”
“Nigeria College of Taxation and Fiscal Studies” Bill Passes Second Reading
A bill for an Act to establish the Nigeria College of Taxation and Fiscal Studies passed its Second Reading last week at the Senate.
The presentation of the Bill was made by Senator Abdullahi Aliyu Sabi CON on the floor of the Senate Tuesday last week, where he noted that the institution, if established would provide professional and academic training as well as certification for tax administrators, tax practitioners and tax professionals across the country.
In his presentation, Senator Sabi, who represents Niger North Senatorial District of Niger State stated that the College had become necessary given the important role that taxation is playing in the nation’s economy, and that this institution would help formulate and draft tax policy for the country while addressing human capital gaps in the country’s tax industry.
“It is becoming increasingly clear that diversifying the sources of government revenue to focus on sustainable sources is inevitable. This diversification puts taxation at the centre of the revenue mobilization discussion; the attainment of this laudable objective would require tax experts who have been properly and adequately schooled to formulate tax policy, draft and interpret tax legislation, carry on private tax practice, and administer taxation in the modern era.
“In view of the constant shift in the social, technological and business environment, with direct impact on the tax system, it is is important to have skills, competence, and adaptable personnel to man the tax system. There must be a conscious development of the field of taxation and fiscal policies in Nigeria to awake the society on the importance of taxation as a sine qua non to our development.
“Nigeria must go beyond the mere inclusion of taxation in the curriculum of educational institutions; instead the country must establish a modern system that facilitates the study of taxation via a well laid out academic curriculum, guided and focused by practical realities of Nigerian taxation and the revenue ecosystem,” he noted.
Senator Sabi further emphasised that the College would help in tackling the issue of lack of sufficient capacity of tax officers, which he noted has led to “the delegation of powers of revenue authorities to third parties, creating complications, multiplicity and uncertainty in the tax system,” and that it would correct “aggressive and orthodox methods for tax collection” while also carrying out a “regular review of obsolete tax laws that do not reflect modern realities.”
He noted that all these would help the country address its fiscal and revenue challenges and achieve the objectives of the National Tax Policy.
In his presentation, the distinguished Senator representing Niger North also cited that countries such as Kenya, Japan, India, Australia, Austria, Singapore, and Malaysia have established similar institutions for developing capacity in taxation, excise duty and customs and fiscal matters, and that this has impacted positively on their economy through significantly high tax-to-GDP ratios.
This College is expected to provide training for tax officials, including officers of the Federal Inland Revenue Service (FIRS), Nigeria Customs, sub-national revenue authorities, and even the general public. It is to consist of a main campus and 12 regional centres.
The Bill proposes that the College would be funded chiefly by the extant yearly subvention of the FIRS for training thus requiring no direct impact on government spending.
Senator Adamu Aliero representing Kebbi Central District, Kebbi State, commenting on the Bill noted that the only sustainable source of revenue for the Federation was taxation, and that the proposed College would train tax officials who would be instrumental to widening the country’s tax net.
He also added that there is currently no institution in Nigeria that offers specialised training in taxation.
NLC, CBN meet in Abuja over Cash scarcity
In less than 24 hours after the leadership of the Nigeria Labour Congress, NLC, directed all its branches and affiliate unions to mobilize members for a shut down of all the branches of the Central Bank of Nigerian, CBN, across the country, over cash scarcity, the apex bank on Thursday evening met with the NLC at the Labour House Abuja.
Recall that the Comrade Joe Ajaero-led NLC, had on Wednesday while addressing journalists said that activities in all branches of the CBN nationwide and the Abuja headquarters will be shut down on Wednesday next due to the cash crunch in the country.
Comrade Ajaero had advised workers to stockpile food items as the industrial dispute with the CBN will be total.
He said Nigerians have been subjected to untold hardship occasioned by the scarcity of naira notes to attend to medical needs and other areas of need.
Vanguard gathered that the NLC threat to paralyze activities at the CBN necessitated the impromptu meeting which started at about 5 pm on Thursday.
The two man delegation made up of the CBN Deputy Gpvrrnor in charge of operations and the Deputy Governor in charge of Economic Pokicy, told the NLC President that about two billion naira was pushed out on Thursdsy in a bid to address the hardship.
A source privy to the meeting told Vanguard that the CBN promised to ensure that the scarcity of naira notes will come to an end as quickly as possible.
“They said the money they pushed out today is equivalent to the whole money pushed out within the week. They also promised to work day and night starting from this night to ensure that there is enough money in the banks,” the source said.
He further said that the CBN denied the allegation that it was printing money out of the country and that the Governor, Godwin Emefiele has directed that the old naira notes should be made available to customers.
Besides, the source denied the allegation that the old naira notes have been burnt, assuring that there will be remarkable improvement in few days to come.
It was gathered that the NLC President, Comrade Ajaero told the CBN delegation that he was not interested in how much that was pushed out, but only interested in seeing that workers and other Nigerians collect their money in banks without stress..
“The President told them that it does not bother us how much they pushed out, our concern is to see that this hardship comes to a stop.
“He also told them that they should work day and night to solve the problem and will depend on the feedback from the average Nigerians who go to the banks to make withdrawals whether there is improvement before Wednesday next week NLC planned to picket the apex bank ,” the source said.
When contacted, the NLC President, Comrade Ajaero, confirmed the meeting and said that the interest of the leadership is to see that Nigerians are able to withdraw their money devoid of the hardship they are passing through.
“We will only know that they are serious when we see improvement,” he added.
EFCC Arraigns FCMB Manager Over N55Million Overdraft Fraud
The Economic and Financial Crimes Commission, EFCC, has arraigned one Kichime Gomwalk, a bank manager and two others for alleged fraud.
Gomwalk of First City Monument Bank (FCMB), Michael Damkas Buayam of Tan Global Energy Limited, and Abbas Andrew Dayilim of Castlegate International Limited were arraigned on Tuesday before Justice P. S. Gang of the Plateau State High Court Jos.
The accused persons were arraigned on five counts bordering on stealing, cheating and obtaining by false pretence money to the tune of N55,000.000.00 (fifty-five million naira).
Gomwalk, while serving as the manager of the bank’s branch at Murtala Mohammed Way in Jos, the Plateau State capital, was alleged to have forged COCIN Gratuity Certificate of Pledge/Letter of Set-Off dated December 30, 2019, purportedly co-signed by Mrs. Monica Bitrus Tang and Rev (Dr.) Amos Musa Mohzo, Directors.
It was allegedly used to secure an overdraft facility from FCMB Plc to the tune of N55 million with COCIN Gratuity account number 100GOMWALK379 domiciled with FCMB Plc.
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