Factbox: Sam Bankman-Fried: The crypto mogul whose empire crumbled
Nov 11 (Reuters) – Sam Bankman-Fried stepped down from his role as CEO of FTX on Friday, and the crypto exchange said it will enter bankruptcy proceedings in the United States, ending a turbulent week for the industry.
The following are some facts about the co-founder and former CEO:
EDUCATION AND INVESTMENTS BEFORE FTX
Sam Bankman-Fried was born in 1992 and grew up in California. As a high school student, he attended the Canada/USA Mathcamp, a summer program for mathematically gifted 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 switched to crypto trading and founded Alameda Research in 2017. In addition to trading major cryptocurrencies, the company also dabbled in other digital asset products and their derivatives.
FOUNDATION 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 and another MIT graduate, to start FTX. The company offered trading in crypto-tokens and derivatives, while boasting a robust risk management system. Bankman-Fried, often referred to by the initials SBF, brought Binance on board as FTX’s first investor.
Bankman-Fried was based in Hong Kong, where his company was previously headquartered. Last year he moved to the Bahamas when FTX decided to move its headquarters to the archipelago.
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 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 in his companies, his net worth is now reported to be around $991 million.
Data released ahead of the US mid-term elections showed him to be the sixth largest political donor, having contributed $39.8 million, with the vast majority going to help Democrats.
CELEBRITY INTEREST
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, “I’m quitting music and becoming an intern for @ftx_official ok”, reportedly after a chat with SBF the day before.
Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta
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