What is Sam Bankman-Fried's Net Worth?
Sam Bankman-Fried is an American entrepreneur and convicted criminal who has a net worth of $0. Sam co-founded the cryptocurrency exchange FTX and founded Alameda Research, a quantitative cryptocurrency trading firm. He was arrested in connection to FTX's collapse in December 2022 and was found guilty of all charges on November 2, 2023. On March 28, 2024, he was sentenced to 25 years in prison and ordered to forfeit $11 billion.
At his peak, Sam was one of the richest people in cryptocurrency with a net worth that topped $25 billion in January 2022. During his tenure at FTX, he avoided many of the legal issues that other exchanges faced. Through Alameda Research, Sam owned a 7.6% stake in Robinhood, which he acquired for $648 million in May 2022. In January 2023, the U.S. government seized Sam's Robinhood stake.
FTX Bankruptcy & Arrest
Rumors about FTX's liquidity surfaced in early November 2022, largely driven by rival tycoon Changpeng Zhao (CZ). On November 8, FTX was forced to sell itself to CZ's company, Binance. By November 11, FTX had filed for bankruptcy and Sam stepped down. In December 2022, Sam was arrested in the Bahamas and extradited to the U.S. He faced multiple charges, including fraud and money laundering, and could be sentenced to 115 years in prison if convicted on all counts.
While out on a $250 million bond, Sam lived at his parents' home near Stanford University. On August 11, 2023, a federal judge revoked his bail due to witness tampering allegations.
Early Life
Sam Bankman-Fried was born on March 6, 1992, in Stanford, California, to two Stanford Law School professors. He developed an interest in utilitarianism and mathematics early in life. Sam attended MIT, graduating with a degree in physics. During college, he blogged about sports, politics, and utilitarianism.
FTX
After earning his physics degree, Sam worked at Jane Street Capital but soon moved to Berkeley in 2017. He became the director of the Centre for Effective Altruism and founded Alameda Research. In 2018, he moved to Hong Kong and founded FTX, a cryptocurrency derivatives exchange, which owns 90% of Alameda Research.
FTX rapidly grew, raising $900 million in 2021 and achieving an $18 billion valuation. The company secured marketing contracts with Major League Baseball and the Miami Heat. In January 2022, FTX's valuation soared to $32 billion.
(Photo by Alex Wong/Getty Images)
Robinhood Investment
In May 2022, Sam acquired a 7.6% stake in Robinhood for $648 million. In January 2023, the U.S. government seized this stake as Sam tried to prove it belonged to him rather than FTX.
Binance Takes Out FTX
Initially, Binance was an investor in FTX. However, on November 6, 2022, CZ announced he was uncomfortable with FTX's finances and would dump Binance's $2 billion FTT holdings. This caused a 60% price drop in FTT over two days, forcing FTX to seek acquisition by Binance. Terms were undisclosed, and FTX filed for bankruptcy shortly after.
Philanthropy and Politics
Sam pledged to give away most of his fortune and joined organizations like Giving What We Can. FTX donated 1% of its revenue to charity each year. Politically, Sam donated $5.2 million to Joe Biden's 2020 campaign and over $40 million to various Democratic candidates for the 2022 midterms.
Personal Life
Sam is a vegan who sleeps about four hours each night, often on a bean bag chair near his computer. He was reportedly in a romantic relationship with Caroline Ellison, CEO of Alameda Research. In mid-2021, Sam lived in a five-bedroom penthouse in the Bahamas with about ten roommates. After FTX's collapse, the property was listed for $40 million.
