🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Factbox-Sam Bankman-Fried: The crypto mogul whose empire came crashing down

Published 11/11/2022, 01:18 PM
Updated 11/11/2022, 01:20 PM
© Reuters. Representations of cryptocurrencies are seen in front of displayed decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration
GOOGL
-
GOOG
-

(Reuters) - Sam Bankman-Fried on Friday resigned from his role as chief executive of FTX and the crypto exchange said it will initiate bankruptcy proceedings in the United States, capping off a tumultuous week for the industry.

Following are some facts about the co-founder and former CEO:

EDUCATION AND VENTURES BEFORE FTX

Born in 1992, Sam Bankman-Fried grew up in California. As a high school student, he attended the Canada/USA Mathcamp, a summer program for mathematically proficient students that also counts his future business partner Gary Wang among its alumni.

Bankman-Fried later graduated from the Massachusetts Institute of Technology (MIT) with a degree in physics. He traded currencies, futures and exchange-traded funds for Jane Street Capital.

After a more than three-year stint at the New York-based firm, he moved to crypto trading and founded Alameda Research in 2017. Besides trading major cryptocurrencies, the company also dabbled in other digital asset products and their derivatives.

FOUNDING OF FTX

More than a year and a half after starting Alameda, Bankman-Fried teamed up with Gary Wang, a former software engineer at Google (NASDAQ:GOOGL) and a fellow MIT graduate, to start FTX. The company offered trading on crypto tokens and derivatives, while also boasting of a robust risk management system. Bankman-Fried, often referred to by his initials SBF, brought Binance on board as FTX's first investor.

Bankman-Fried was based in Hong Kong, where his company was headquartered earlier. Last year, he moved to the Bahamas when FTX decided to shift its headquarters to the archipelago nation.

WEALTH

Before the FTX collapse wiped out most of SBF's wealth, he was one of the richest people in the digital asset industry. Forbes estimates his net worth to have peaked at $26.5 billion amid a wave of institutional adoption that pumped up crypto prices to record highs last year.

After a liquidity crisis at his companies, his net worth is now reported to be around $991 million.

Data released ahead of the U.S. midterm elections showed he was the sixth-largest political donor, having contributed $39.8 million with the vast majority going to help Democrats.

CELEBRITY INTEREST

© Reuters. Representations of cryptocurrencies are seen in front of displayed decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

National Football League quarterback Tom Brady and supermodel Gisele Bundchen took stakes in FTX last year. The company also signed NBA star Steph Curry as an ambassador.

In February, pop star Katy Perry posted on Instagram, "im quitting music and becoming an intern for @ftx_official ok", reportedly after a chat with SBF the day before.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.