Sam Bankman-Fried
Crypto Trends & News

Profile Sam Bankman-Fried, from exalted young visionary at FTX… to fallen ‘wolf’ of crypto

-The founder of FTX has been charged with eight counts of “fraud” by the New York Prosecutor’s Office.

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Sam Bankman-Fried has gone this year from being considered a young billionaire crypto visionary to becoming the ‘wolf’ of FTX. What he hasn’t lost along the way are the millions. This 30-year-old American, with disheveled curls, and a fan of T-shirts, shorts, and hoodies, has just been arrested in the Bahamas, a month after the bankruptcy of his emporium, the FTX cryptocurrency exchange, on suspicion that his management was not only erratic but also fraudulent.

The New York Prosecutor’s Office, obeying the US Government and “based on a secret accusation,” arrested Bankman-Fried for “electronic fraud” and “money laundering”, among other crimes, in his paradise, where he has acquired a portfolio of homes with his family. The New York Times also pointed out a few days ago that the founder of FTX maneuvered in the spring to cause the fall of two cryptocurrencies that destabilized the market in May. Bankman-Fried tried to profit from the crisis and ended up getting burned.

Who is Sam Bankman-Fried?

A young man who wanted to play hard with the volatility of cryptocurrencies, risked everything, saving the unsolvable, was wrong, and asked for forgiveness, or someone more similar to the ‘wolf of Wall Street’, a strategist who maneuvered, won, set aside assets, and hid millions.

Son of two law professors

Sam Bankman-Fried was born to two Stanford Law School professors, who are now pilloried for making a living off of FTX, on March 6, 1992, in California. He completed his high school studies at Crystal Springs Uplands School in Hillsborough, California. He also enrolled in a summer academic program for high-ability high school students in mathematics. At the university, he graduated in Physics and Mathematics from the prestigious MIT (Massachusetts Institute of Technology), in Cambridge, Massachusetts. He learned about markets and the Stock Market in New York.

Founder of FTX, valued at 32 billion

But SBF, as Bankman-Fried is better known, became world famous in 2019 with the founding of a cryptocurrency exchange: FTX. There, it centralized the purchase and sale of cryptocurrencies, assuming risks with their profits or losses. It was so clever that it came to compete with the biggest ones: Binance and Coinbase.

In 2022, amid the cryptocurrency earthquake, SBF took the risk of providing coverage as a financial lifeline to companies on the tightrope. He bought several platforms that went bankrupt. He covered his unbridled expansionary strategy in part with a currency token, manufactured by FTX, of his own, called FTT, as collateral and while transferring funds to another company of his own, Alameda Research, without consulting investors.

The lack of transparency was precisely what ruined his company, FTX. A company that was valued at 32,000 million Euros, until many investors at the same time wanted to quickly withdraw their deposits, forcing the bankruptcy of ‘mega exchange’ in November. SBF couldn’t find anyone to throw him a life preserver in time.

Is Fortune hidden or lost?

During an interview with The New York Times in late November, Bankman-Fried said she had about $100,000 in the bank. According to Forbes, Bankman-Fried had an estimated maximum net worth of $26.5 billion. However, much of that value was tied to the value of FTX and its FTT cryptocurrency token. It has also been known that, together with his parents and FTX colleagues, he acquired a real estate portfolio in the Bahamas. Subsequent investigations have found signs of theft during the company’s peak days. If Bankman-Fried is as opaque with his finances as he was at FTX, he will surely have “saved” some of the loot, and once the legal storm passes, he will live very well. It is crucial to note that his current detention may take a long time for his horizons to clear.

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