Sam Bankman-Fried (SBF)
19 hours agoSam Bankman-Fried, often referred to as SBF, is an American entrepreneur recognized for establishing and managing the cryptocurrency exchange FTX and the cryptocurrency hedge fund Alameda Research.
In November 2022, Bankman-Fried’s personal wealth of $15 billion and the $35 billion FTX exchange collapsed due to a liquidity crisis. Allegations surfaced that SBF withdrew $10 billion in customer funds from FTX and covertly redirected it to Alameda Research, his hedge fund known for making significant investments in other crypto companies. These investments were primarily in the form of loans secured by FTX’s native cryptocurrency, FTT.
As it became clear that Alameda’s assets were largely composed of FTT and other cryptocurrencies (with nearly $6 billion of Alameda’s $14 billion balance sheet consisting of FTT), FTX customers and investors grew concerned and began withdrawing and selling their FTT from the exchange.
FTX experienced $6 billion in withdrawals within the first three days following media reports on Alameda’s holdings. The exchange was forced to suspend withdrawals when it became evident that there were insufficient funds to meet customer withdrawal requests.
Bankman-Fried is the son of law professors at Stanford University. He graduated from MIT in 2014, where he studied physics and mathematics, and subsequently worked at Jane Street Capital, a global proprietary trading firm and liquidity provider that traded $17 trillion in securities.
SBF left Jane Street in 2017 to establish Alameda Research, and he founded the FTX exchange in 2019.
Through his achievements with Alameda and the creation of one of the largest cryptocurrency exchanges globally, SBF was viewed as the golden child of crypto and a potential savior for an industry plagued by hackers and unscrupulous actors.
He utilized his considerable wealth and influence to donate nearly $50 million to various Democratic Party politicians, including President Joe Biden, during the 2020 elections.
In June 2022, he also agreed to provide Blockfi with a $250 million revolving credit line as the company faced financial difficulties due to the declining value of many digital assets in the crypto market.
Bankman-Fried and Alameda also pledged $500 million in financing to Voyager Digital, a crypto brokerage.
In October 2021, Forbes included Bankman-Fried in its list of the wealthiest individuals in the world under 30, estimating his net worth at $20 billion.
As of November 2022, SBF has shut down Alameda Research, filed for Chapter 11 bankruptcy protection for FTX, resigned as CEO of FTX, and is potentially under investigation by the Justice Department, the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Securities Commission of the Bahamas, where FTX is headquartered.
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