History of Sam Bankman-Fried in Timeline
Samuel Benjamin Bankman-Fried, also known as SBF, is an American entrepreneur who founded the FTX cryptocurrency exchange. Once celebrated as a leading figure in the crypto world and ranked the 41st-richest American in the Forbes 400, Bankman-Fried's career took a dramatic turn when he was convicted of fraud and related crimes in November 2023.
March 5, 1992: Birth of Samuel Benjamin Bankman-Fried
Samuel Benjamin Bankman-Fried, commonly known as SBF, was born on March 5, 1992, in Stanford, California. He would later become an American entrepreneur known for founding the FTX cryptocurrency exchange.
1995: Birth of Gabriel Bankman-Fried
Around 1995, Gabriel Bankman-Fried, the younger brother of Sam Bankman-Fried, was born. He would later work as a legislative assistant, Wall Street trader, and director of the nonprofit Guarding Against Pandemics.
2004: John J. Ray III Chaired Enron Asset Recovery
In 2004, John J. Ray III began chairing the effort to recover Enron assets for creditors through litigation.
2009: John J. Ray III Chaired Enron Asset Recovery
By 2009, John J. Ray III had completed his role in recovering Enron assets for creditors.
2013: Internship at Jane Street Capital
In the summer of 2013, Sam Bankman-Fried worked as an intern at Jane Street Capital, a proprietary trading firm where he traded international ETFs. He returned there to work full-time after his graduation from MIT.
2014: Graduation from MIT
In 2014, Sam Bankman-Fried graduated from the Massachusetts Institute of Technology with a bachelor's degree in physics and a minor in mathematics. During his time at MIT, he lived in a coeducational group house called Epsilon Theta.
September 2017: Departure from Jane Street and Move to Berkeley
In September 2017, Sam Bankman-Fried left his position at Jane Street and moved to Berkeley, California, where he briefly worked as the director of development at the Centre for Effective Altruism (CEA).
November 2017: Founding of Alameda Research
In November 2017, Sam Bankman-Fried co-founded Alameda Research, a quantitative trading firm, with Tara Hedley (née Mac Aulay). This was made possible by fund injections from billionaire computer programmer Jaan Tallinn and investor Luke Ding.
January 2018: Arbitrage Trade in Bitcoin
In January 2018, Sam Bankman-Fried organized an arbitrage trade that moved up to $25 million per day to take advantage of the higher price of Bitcoin in Japan compared to the United States.
April 2019: Founding of FTX
Sam Bankman-Fried founded the FTX cryptocurrency derivatives exchange in April 2019. The platform opened for business the following month, marking a significant milestone in his career.
September 2021: Relocation to the Bahamas
In September 2021, Sam Bankman-Fried and the entire senior staff of FTX relocated from Hong Kong to the Bahamas.
October 2021: Donations to Guarding Against Pandemics
Between October 2021 and May 2022, Sam Bankman-Fried donated $35 million to Guarding Against Pandemics. However, subsequent legal complaints alleged that the funds were misused and did not contribute to pandemic prevention.
December 8, 2021: Testimony Before the Committee on Financial Services
On December 8, 2021, Sam Bankman-Fried, along with other industry executives, testified before the Committee on Financial Services about regulating the cryptocurrency industry.
2021: Donations to Republican Party Campaigns
In 2021, Sam Bankman-Fried donated an estimated $262,200 to Republican Party campaigns, including contributions to senators Susan Collins, Mitt Romney, Lisa Murkowski, and Ben Sasse. Journalist Matthew Kassel noted that Bankman-Fried's donations often went to politicians who support strong Israel–United States relations, though it remains unclear if this was due to a personal interest in Middle East policy.
2021: Forbes 30 Under 30 Recognition
In 2021, Sam Bankman-Fried was included on the Forbes 30 Under 30 list, highlighting his achievements in the cryptocurrency industry.
2021: Binance Received FTT as Part of Sale
In 2021, Binance received $529 million worth of FTT as part of a sale of its equity in FTX.
2021: Living Arrangements in 2021
As of mid-2021, Sam Bankman-Fried, a vegan raised in a Jewish family, lived with approximately ten roommates in a five-bedroom Bahamian penthouse bought by FTX co-CEO Ryan Salame. Following the collapse of FTX, the penthouse was listed for sale at close to $40 million.
2021: Ownership of Alameda Research
As of 2021, Sam Bankman-Fried owned approximately 90 percent of Alameda Research, highlighting his significant stake and control in the firm.
February 2022: Second-Largest Donor to Democratic Causes
In February 2022, Sam Bankman-Fried was recognized as the second-largest individual donor to Democratic causes for the 2022 U.S. elections, donating a total of $39.8 million. A significant portion, $27 million, went to the Protect Our Future PAC. Despite his substantial contributions, Bankman-Fried claimed his donations were not aimed at influencing cryptocurrency policy, although FTX was actively suggesting policy changes to lawmakers.
April 15, 2022: End of Relationship with Caroline Ellison
On April 15, 2022, Sam Bankman-Fried's relationship with Caroline Ellison, the CEO of Alameda Research, ended after lasting around six months.
April 25, 2022: Offer to Fund Elon Musk's Twitter Purchase
On April 25, 2022, it was revealed that Sam Bankman-Fried was willing to commit up to $5 billion to help fund Elon Musk's purchase of Twitter. However, no investment took place when Musk finalized the acquisition.
May 12, 2022: Investment in Robinhood Markets
On May 12, 2022, it was disclosed that Emergent Fidelity Technologies Ltd., majority-owned by Sam Bankman-Fried, had bought 7.6 percent of Robinhood Markets stock.
May 15, 2022: FTX Donates to TOGETHER Trial
On May 15, 2022, FTX announced a donation of $18 million to support the 'TOGETHER Trial,' an international research consortium conducting clinical trials to test existing drugs for various conditions, including COVID-19.
May 2022: Donations to Guarding Against Pandemics
Between October 2021 and May 2022, Sam Bankman-Fried donated $35 million to Guarding Against Pandemics. However, subsequent legal complaints alleged that the funds were misused and did not contribute to pandemic prevention.
May 2022: Lobbying for Digital Commodities Consumer Protection Act
In May 2022, Sam Bankman-Fried actively lobbied Congress to support the proposed Digital Commodities Consumer Protection Act (DCCPA), which was seen as beneficial for FTX but potentially harmful to its decentralized finance competitors. He also announced plans to spend over $100 million in the 2024 presidential election, though he later retracted this statement.
June 2022: Signed the Giving Pledge
In June 2022, Sam Bankman-Fried signed the Giving Pledge, committing to donate the majority of his wealth to charitable causes.
September 1, 2022: Future Fund's $160 Million Commitment
As of September 1, 2022, the Future Fund, founded by Sam Bankman-Fried, had committed around $160 million to 110 nonprofits.
September 2022: Investment in Anthropic and Sequoia Capital
In September 2022, it was reported that Sam Bankman-Fried had invested $500 million in Anthropic and more than $500 million in venture capital firms, including $200 million in Sequoia Capital.
October 2022: Retraction of 2024 Election Spending Pledge
In October 2022, Sam Bankman-Fried walked back his earlier pledge to spend over $100 million in the 2024 presidential election, calling it a "dumb quote on my part." It was later revealed that he had considered the legality of directly paying Donald Trump not to run for president in 2024, with Trump's team allegedly suggesting a figure of $5 billion.
October 2022: Return of Donations by Political Campaigns
In October 2022, in the wake of the FTX scandal, several political campaign recipients of Sam Bankman-Fried's donations chose to return the funds or donate equivalent amounts to charity. Notably, Beto O'Rourke's campaign returned a $1 million donation from Bankman-Fried in early November, prior to the election.
November 8, 2022: Misleading Statements About FTX's Solvency
On November 8, 2022, Sam Bankman-Fried tweeted that 'FTX is fine. Assets are fine.' This statement was later revealed to be misleading, as FTX executives clarified it was false and only technically true in terms of solvency, not liquidity. The statements were part of a pattern of public misinformation contrasting with private realities.
November 11, 2022: FTX Declares Bankruptcy
On November 11, 2022, FTX, Alameda Research, and more than 130 associated entities declared bankruptcy.
November 2022: FTX's Bankruptcy and Initial Fraud Allegations
In November 2022, significant problems and potential fraud at FTX began to surface. This led to a mass withdrawal of assets by depositors, forcing the company into bankruptcy.
November 2022: Loan for Robinhood Investment
In a November 2022 affidavit before the Eastern Caribbean Supreme Court, Sam Bankman-Fried stated that he and FTX co-founder Gary Wang borrowed over $546 million from Alameda Research to finance Emergent Fidelity Technologies' purchase of Robinhood Markets stock.
November 2022: Binance's Intent to Sell FTT
In November 2022, Binance CEO Changpeng Zhao announced on Twitter that his firm intended to sell its holdings of FTT, FTX's token, leading to a spike in customer withdrawals that FTX couldn't fulfill.
November 2022: Bankman-Fried Denies Knowledge of Fund Mismanagement
In November 2022, Sam Bankman-Fried denied knowledge of how Alameda accessed customer funds. He claimed to have believed the funds were either held in a bank account or sent to FTX. It wasn't until October or November 2022 that he confirmed Alameda had taken $8 billion, with these transactions not being tracked properly on Alameda's main account.
November 2022: Revelation of Insincere Advocacy
In November 2022, Sam Bankman-Fried revealed in an interview with Vox that his and FTX's advocacy for crypto regulation was insincere and primarily a PR move.
December 12, 2022: Arrest of Sam Bankman-Fried
On December 12, 2022, Sam Bankman-Fried was arrested in the Bahamas and subsequently extradited to the United States. He was indicted on seven criminal charges, including wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance law violations.
December 2022: FTX Begins Clawback Efforts
In December 2022, FTX's new management initiated efforts to 'claw back' donations made to politicians, celebrities, and charities as part of its bankruptcy proceedings. The company announced plans to require the return of such payments with interest, as allowed by U.S. legislation.
December 2022: Prepared Testimony for Congress
In December 2022, Sam Bankman-Fried prepared testimony for the House Financial Services Committee, claiming FTX was solvent but that he was pressured to declare bankruptcy. He did not testify due to his arrest.
December 2022: Parents Support Bankman-Fried Amid Arrest
In December 2022, around the time of his arrest, Sam Bankman-Fried's parents expressed their support by writing a letter declaring his innocence. His mother, Barbara Fried, criticized the prosecution and bankruptcy team in an email to The New Yorker, calling their actions "McCarthyite."
December 2022: Extradition from the Bahamas
In December 2022, federal prosecutors brought additional charges against Sam Bankman-Fried, including bank fraud and bribery, after he was extradited from the Bahamas. He requested these charges be dismissed or resolved under a separate trial as they were not part of the extradition agreement.
December 2022: Removed from the Giving Pledge
In December 2022, following his arrest, Sam Bankman-Fried's name was removed from the Giving Pledge list.
2022: Illegal Campaign Finance Indictment
In 2022, Sam Bankman-Fried was indicted for using $100 million in stolen FTX customer funds for U.S. election campaign contributions.
2022: Transfer of Funds to Alameda Research
In 2022, Sam Bankman-Fried transferred at least $4 billion from FTX to Alameda Research without disclosure, including customer funds.
January 3, 2023: Pled Not Guilty
On January 3, 2023, Sam Bankman-Fried pled 'not guilty' to fraud and other charges.
February 1, 2023: Bail Conditions Tightened
On February 1, 2023, Judge Lewis Kaplan tightened Bankman-Fried's bail conditions, forbidding him from contacting current or former FTX employees without attorneys present.
February 23, 2023: Additional Criminal Charges
On February 23, 2023, four additional criminal charges were announced against Sam Bankman-Fried, focusing on illegal political donations.
March 2023: Indictment for Bribing Chinese Officials
In March 2023, an indictment accused Sam Bankman-Fried of transferring at least $40 million in cryptocurrency to Chinese government officials to unfreeze Alameda Research accounts.
April 2023: Recuperation of Liquid Assets
As of April 2023, $7.3 billion of the original $8 billion in missing funds had been recuperated in liquid assets. An anonymous bidder valued the remaining portfolio at 'at least $2 billion,' though legal experts noted this does not absolve any fraudulent activities.
July 2023: Consideration of Purchasing Nauru
In July 2023, allegations emerged that Sam Bankman-Fried had considered purchasing the island country of Nauru to use as a bunker in the event of an apocalyptic event. This project was described as "misguided and sometimes dystopian."
July 20, 2023: Insiders Avoidance Complaint Filed
On July 20, 2023, an Insiders Avoidance Complaint was filed against Sam Bankman-Fried and three former FTX/Alameda executives to recover 'hundreds of millions of dollars that Defendants misappropriated.' The complaint included allegations that Guarding Against Pandemics, which received $35 million from Bankman-Fried, failed to prevent pandemics.
August 11, 2023: Bail Revoked for Witness Tampering
On August 11, 2023, after Judge Kaplan concluded that witness tampering likely occurred, Sam Bankman-Fried's bail was revoked. He was remanded into custody at the Metropolitan Detention Center in Brooklyn.
August 22, 2023: Concerns Over Jail Conditions
On August 22, 2023, Bankman-Fried's counsel raised concerns about his client's jail conditions, stating he wasn't provided a vegan diet and had low medication supplies for ADHD and depression. By November, he had access to a vegetarian diet and prescription drugs and participated in the prison's informal economy.
October 3, 2023: Trial Began
On October 3, 2023, Sam Bankman-Fried's trial began at Manhattan federal court, where he faced seven counts of fraud and conspiracy.
October 2023: Caroline Ellison Testifies Against Bankman-Fried
In October 2023, Caroline Ellison testified against Sam Bankman-Fried in court, claiming that his hairstyle and clothes were part of a "well calculated" image intended to influence perceptions and bonuses, particularly noting its importance to FTX's narrative and image.
October 2023: Proposed Settlement of Customer-Property Disputes
In October 2023, FTX and its affiliated debtors announced a proposed settlement of customer-property disputes to be presented for approval to the bankruptcy court. The settlement estimated that customers of FTX.com and FTX US would collectively receive over 90% of distributable value worldwide.
November 2, 2023: Bankman-Fried Found Guilty on All Counts
On November 2, 2023, Sam Bankman-Fried was found guilty on all seven counts at the end of his trial. The sentencing was scheduled for March 28, 2024, and experts began speculating on the amount of prison time he might face.
November 2023: Conviction of Sam Bankman-Fried
In November 2023, Sam Bankman-Fried was convicted of fraud and related crimes. This marked a significant downfall for the entrepreneur who was once celebrated as a "poster boy" for the cryptocurrency industry.
December 30, 2023: Prosecutors Announce No Second Trial
On December 30, 2023, prosecutors announced they would not proceed with a second trial against Sam Bankman-Fried. They stated that the benefits of a second trial were outweighed by the public interest in promptly resolving the case, and it would not affect his potential prison time under federal guidelines.
2023: Inclusion in Forbes 2023 Hall of Shame
In 2023, Sam Bankman-Fried was included in Forbes' Hall of Shame list, featuring individuals the publication wishes it could take back from their previous accolades.
February 2024: Mother Advocates for Lenient Sentencing
In February 2024, Barbara Fried wrote a letter to the judge advocating for lenient sentencing for her son, Sam Bankman-Fried, emphasizing the extreme danger he faces in prison.
March 28, 2024: Sentencing of Sam Bankman-Fried
On March 28, 2024, Sam Bankman-Fried was sentenced to 25 years in prison and ordered to forfeit $11 billion after being convicted of all seven counts of fraud, conspiracy, and money laundering in the case of United States v. Bankman-Fried.
April 11, 2024: Bankman-Fried Appeals Conviction
On April 11, 2024, Sam Bankman-Fried appealed his conviction and the 25-year prison sentence. The appeals process could take years, and it would need to show that significant errors were made during the trial that deprived him of his legal rights.