Sam Bankman-Fried
Sam Bankman-Fried, also known as SBF, is an American former cryptocurrency entrepreneur and the founder of FTX and Alameda Research.
Sam Bankman-Fried, also known as SBF, is the American former cryptocurrency entrepreneur who founded FTX and Alameda Research. He was convicted in 2023 on federal fraud and money-laundering charges and sentenced in 2024 to 25 years in prison.
What it is
Sam Bankman-Fried was a prominent figure in the crypto world, building FTX into a major exchange and Alameda Research into a trading firm. His net worth was estimated in the billions before FTX collapsed in November 2022.
Why it matters
The collapse of FTX revealed that customer funds were allegedly misused to support Alameda Research and other expenses. The case triggered global scrutiny of crypto regulation, including in Canada, where investors and users were affected by the fallout.
Key details
Bankman-Fried was born in 1992 in Stanford, California, and studied at MIT. He founded Alameda Research in 2017 and FTX in 2019. In November 2023, a jury convicted him on all seven counts. He was sentenced in March 2024 to 25 years in prison and ordered to forfeit about $11 billion.
In short
- Founded FTX and Alameda Research, becoming a billionaire crypto entrepreneur.
- FTX collapsed in November 2022 after a liquidity crisis and misuse of customer funds.
- Convicted in 2023 on seven federal fraud and money-laundering counts.
- Sentenced in 2024 to 25 years in prison and $11 billion forfeiture.
FTX and Sam Bankman-Fried were widely covered in Canada because Canadian investors and cryptocurrency users were affected by the broader fallout from the exchange’s collapse and the resulting global scrutiny of crypto regulation.
Quick questions
Who is Sam Bankman-Fried?
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What happened to FTX?
Sources
- Reuters — https://www.reuters.com/technology/who-is-sam-bankman-fried-onetime-crypto-mogul-facing-decades-prison-2024-03-28/Supports: Biographical details, FTX founding context, and 2024 sentencing.
- U.S. Department of Justice — https://www.justice.gov/archives/opa/pr/samuel-bankman-fried-sentenced-25-years-his-orchestration-multiple-fraudulent-schemesSupports: Sentence of 25 years, supervised release, and forfeiture order.
- BBC News — https://www.bbc.com/news/business-66990173Supports: Guilty verdict on seven counts and prison exposure context.
- Encyclopaedia Britannica — https://www.britannica.com/money/Sam-Bankman-FriedSupports: Overview of FTX, Bankman-Fried’s role, collapse, conviction, and sentence.
- Biography.com — https://www.biography.com/crime/a68080292/sam-bankman-friedSupports: FTX timeline, bankruptcy, and allegations about customer funds.