Sam Bankman-Fried Net Worth: In 2019, Sam Bankman-Fried launched the FTX cryptocurrency exchange and saw it all fall and burn within 72 hours.
He was formerly regarded as the King of Crypto, Bankman-Fried. He even attempted to assist the government in regulating the industry and made significant return promises to investors and customers.
That is until cryptocurrency juggernaut Binance voiced concerns about FTX’s financial stability, and falling cryptocurrency prices sparked a bank run, revealing FTX and its sister company Alameda Research were reportedly working together suspiciously to pay off debts and leaving an $8 billion hole in its accounts.
FTX attracted significant investors like SoftBank and BlackRock and touted celebrity endorsements from people like Shaquille “Shaq” O’Neal and Tom Brady. The firm’s low-risk, the high-reward strategy seemed almost too fantastic to be true. It was, too.
According to Reuters, between $1 billion and $2 billion in client money has disappeared since the FTX crash.
Since his arrest and subsequent charges of fraud, SBF has been accused of orchestrating “one of the greatest financial frauds in American history,” according to the prosecution. He might spend as much as 115 years behind bars.
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Who Is Sam Bankman Fried?
Sam Bankman-Fried was a rising crypto whiz and academic standout before becoming involved in the FTX incident.
Bankman-Fried, also known as “SBF,” was raised in California by his parents, Joseph Bankman and Barbara Fried, who taught law at Stanford University, according to Reuters. He was a math prodigy who graduated from MIT in 2014 after achieving academic success.
What Was Sbf’s Source Of Income?
Bankman-Fried engaged in currency, futures, and exchange-traded fund trading while employed by Jane Street Capital in New York City after receiving his degree. At age 25, SBF left the organization after three years to launch his own cryptocurrency trading business, Alameda Research.
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Alameda, which had its headquarters in Hong Kong, made money by capitalizing on regional variations in the cost of bitcoin. According to The New York Times, the corporation would buy Bitcoin in Asia and sell it abroad to profit from the exchange rate differential.
How Much Money Does Sam Bankman-fried Make?
According to Bloomberg Billionaires Index, Sam Bankman-Fried had an estimated net worth of $15.6 billion just days before his crypto enterprise crumbled. He lost all of his money and now had $1 billion. One of the largest one-day falls the tracker has ever observed was a 94% reduction in his fortune.
SBF’s estimated net worth at his height was $26.5 billion, with most of his assets invested in his businesses.
SBF promised to donate 99% of his wealth to charities earlier this year. Vox said his FTX Foundation had given over $190 million to some causes, including animal welfare and world poverty. Additionally, SBF described his charity goals in a post to the Giving Pledge website that has since been taken down.
What Will Sam Bankman-Fried Do Next?
Bankman-Fried was detained and is now held in Fox Hill Prison in Nassau, Bahamas, after being denied release on bond. He has consented to be returned to the US.
SBF was flown from the Bahamas to New York on Wednesday, and he’s scheduled to appear in court for the first time in the United States on Thursday, according to AP News.
According to a follow-up story from the site, a judge has decided to free SBF on a $250 million bond after he agreed to forego extradition. He can also remain under house arrest while awaiting trial at his parent’s property in California.