Sam Bankman-Fried, commonly known as SBF, is an American entrepreneur and the founder of FTX, a major cryptocurrency exchange. His journey—from a physics graduate to a crypto tycoon and eventually a convicted fraudster—captures the volatility and drama of the digital asset world.
Early Life and Education
- Born: March 6, 1992, in Stanford, California.
- Parents: Stanford Law professors Barbara Fried and Joseph Bankman.
- Education: Graduated from MIT with a degree in physics (2014).
- Early Interests: Utilitarianism, effective altruism, and quantitative trading.
Career Highlights
2017–2021: Building a Crypto Empire
- Alameda Research: Founded in 2017 as a crypto trading firm, managing over $1B in assets.
- FTX Launch (2019): Grew rapidly to become a top-five global crypto derivatives exchange.
- Philanthropy: Pledged to donate most of his wealth via the Giving What We Can initiative.
2022: The Collapse
- November: FTX filed for bankruptcy after a liquidity crisis involving Alameda Research.
- December: Arrested in the Bahamas; later extradited to the U.S. on fraud charges.
Legal Consequences
- 2023: Convicted on seven counts of fraud and conspiracy.
- 2024: Sentenced to 25 years in prison for misusing $8B in customer funds.
Key Controversies
- Misuse of Funds: Secretly transferred FTX client assets to Alameda.
- Political Donations: Donated $5.2M to Joe Biden’s 2020 campaign.
Personal Traits
- Lifestyle: Vegan, minimal sleep ("four hours a night"), worked from a beanbag.
- Philosophy: Strong believer in effective altruism.
FAQ
Q1: What was FTX?
A: A crypto exchange offering derivatives and leveraged trading; collapsed in 2022.
Q2: How did SBF misuse funds?
A: Used customer deposits for Alameda’s high-risk trades without consent.
Q3: What’s next for FTX creditors?
A: Bankruptcy proceedings aim to recover partial funds through asset sales.