FTX CEO Sam Bankman Fred quickly became a pariah in the crypto community.

After FTX’s liquidity crisis, Binance’s CEO revealed that it will be acquired by Binance.

Binance is the largest cryptocurrency trading platform in terms of trading volume.

And the acquisition of Binance’s biggest competitor will make Binance even stronger than it already is.

Meanwhile, Fred Bankman’s fortunes take a turn for the worse.

In two days, Sam Bankman Fred, the second richest person in the cryptocurrency market, lost all his wealth.

According to the Bloomberg Billionaires Index, the bankman’s fortune before the liquidity crisis was $16 billion.

Now his wealth has come down to 991 million dollars.

It seems Bankman’s problems have only just begun.

Experts believe that both FTX and its founders have a large number of lawsuits pending.

Why might SBF and FTX have legal problems?

The cryptocurrency market is experiencing a sharp decline due to the impact of the FTX crisis.

Coinbase research indicated that two-thirds of the market selloff was a direct result of the faltering macroeconomic outlook.

As the general market swings by news of inflation and recession, the cryptocurrency market swings more.

It can be argued that the current selloff is a direct result of the actions of FTX and “Sam Bankman Fred”.

Lucas Nuzzi, head of research and development at CoinMetrics, believes FTX provided a massive bailout for Alameda.

Bankman also owns this trading company.

The bailout caused FTX’s balance sheet to collapse dramatically and it could no longer meet its obligations, he says.

Algorod, one of the biggest influencers in the crypto space, believes Bankman could end up in jail.

David Bailey, CEO of Bitcoin Magazine, sees FTX as 3AC 2.0.

He told the bankman that he was running a Ponzi scheme.

On the other hand, experts fear that Binance may not complete the FTX deal.

The agreement is not yet legally binding and Binance has only made certain commitments.

If Binnas pulls out of the deal, it could be the end of FTX.

Also read:

Binance dominates spot trading volume in light of FTX crisis

Binance’s acquisition of FTX and the change in rhetoric between the heads of the two companies (Binance and FTX)