Sam Bankman-Fried : FTX Crypto Wonderkind who lost his $17billion fortune

Sam Bankman-Fried

Sam Bankman-Fried is an unusual CEO. The 30 year old American has a story behind him that is nothing short of dramatic.

He started his career at a hedge fund, Jane Street Capital, as he said purely to make money. And make money he did!

The founder of FTX, one of the largest crypto exchanges in the world, Sam, is known for his signature fluffy hair, t-shirts and shorts that he adorns in executive meetings. Very unusual, but that is the story of Sam Bankman-Fried.

He first started a crypto research firm, Alameda Research in 2017 before founding FTX in 2018.
After founding FTX, he amassed a fortune of $26.5billion by doing price arbitrage which took advantage of price differences in Bitcoin in the United States and Asia.

So how did he lose it all? Apparently, there was some unaccounted movement of customer funds to Alameda to the tune of $10billion. Those funds were apparently invested in illiquid investments. When traders rushed to FTX to withdraw funds, FTX apparently collapsed.
Another crypto exchange, Binance, unsuccessfully tried to help with liquidity. It was all in vain, as FTX filed for bankruptcy on Friday.

With this bankruptcy, customer funds are assumed to have vanished into thin air.
FTX was long gone, and so was the fortune of Sam Bankman-Fried.

As his last name states, he got “Fried”

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Photocredit: Bloomberg

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