- Sam Bankman Fried, son of two Stanford professors and former CEO of the FTX exchange, portrays himself as the Robin Hood of cryptocurrencies.
- SBF’s motto is effective altruism, but in the end he doesn’t give to charity as promised.
- FTX’s charitable fund, the FTX Future Fund, aims to donate $1B to new projects.
- After the collapse of FTX, all employees of FTX Future Fund resigned.
Former FTX CEO Sam Bankman Fried was once one of the richest people in the crypto space, with an estimated net worth of $17.2B in his empire in 2022 Before the total collapse in November. The son of two Stanford law professors who studied physics at MIT and traded ETFs before turning to cryptocurrencies in late 2017, Bankman-Fried is known for his generous persona, portraying himself as the Robin Hood cryptocurrency he Want to be so rich that he will eventually give up all his wealth. But how much of this is only superficial?
Bankman-Fried originally made his fortune through arbitrage opportunities in the cryptocurrency industry that he developed at Jane Street. He took advantage of the price difference of Bitcoin, which trades 10% higher in Japan than in the U.S. There is an opportunity to earn 10% per day by buying Bitcoin on a U.S. exchange and sending it to a Japanese exchange to sell. With With this strategy, wealth accumulated from $10,000 will turn into $1 billion in less than four months.
At age 30, Sam Bankman Fried bought his first bitcoin from Become a cryptocurrency billionaire. His main goal? Donate all his earnings to charity.
How much does SBF donate to charity?
According to a Sequoia report, the SBF adopted the philosophy of “He’ll Get Dirty Rich for Charity.” According to a CNBC interview, SBF is donating $100 million to charities in 2022. His motto is effective altruism; he wants to make as much money as possible so he can donate as much as possible to the most efficient charity in the world.
SBF has not been very good at donating billions of dollars. In fact, the most significant donations he made were political. The SBF is the sixth-largest donor, giving more than $36 million to Democrats and $235,200 to Republicans, according to political donation platform Open Secrets.
His charitable organization, the FTX Future Fund, claims to have committed more than $160 million in grants, without specifying where those grants are going. Following FTX’s bankruptcy proceedings, the entire staff of the FTX Future Fund resigned on November 11. According to their resignation letter, the fund will not be able to honor many grants. $1 billion will be invested in an average of 100 million new projects per year.
Nathan Young, head of forecasting at Zeitgeist, a crypto prediction market that appears to be one of the $182K for FTX Future Fund, tweeted, He was shocked by the whole game.
I am very aware that I am funded by @ftxfuturefund. When the money is donated, fraud is likely to have already occurred. This is heavy for me.
I was freaked out by the arrogance of this whole game. It will hurt everyone.
— Nathan 🔍 (@NathanpmYoung) November 11, 2022
FTX $32 billion Crash
Bankman-Fried’s $32B wealth evaporated after the exposure of large illiquid assets on the balance sheets of Alameda and FTX. FTX reportedly illegally moved user funds from the exchange to Alameda.
“For us to get into this place and for me to be in it,” Bankman-Fried told employees after his resignation. “I screwed up”.
In an interview published by Bloomberg, the U.S. Treasury Secretary also commented on FTX’s collapse.
“It’s indicative of weakness across the industry,” Yellen said. ” The idea that you can use deposits from exchange clients and lend them to independent businesses you control for risky leveraged investments – this is not allowed.
Bankman-Fried’s $32B wealth evaporated after the exposure of large illiquid assets on the balance sheets of Alameda and FTX. FTX reportedly illegally moved user funds from the exchange to Alameda.
“For us to get into this place and for me to be in it,” Bankman-Fried told employees after his resignation. “I screwed up”.
In an interview published by Bloomberg, the U.S. Treasury Secretary also commented on FTX’s collapse.
“It’s indicative of weakness across the industry,” Yellen said. ” The idea that you can use deposits from exchange clients and lend them to independent businesses you control for risky leveraged investments – this is not allowed.
