Connect with us


Sam Bankman Fried’s FTX & Alamada Empire Collapsed. How Much Did He Actually Donate To Charity In The End?



Sam Bankman Fried’s FTX & Alamada Empire Collapsed. How Much Did He Actually Donate To Charity In The End?
  • Sam Bankman Fried, the son of Two Stanford professors and the ex-CEO of FTX exchange, painted himself as the Robin Hood of crypto.
  • SBF’s motto was effective altruism, but in the end, he did not give as much as promised to charity.
  • FTX’s philanthropic fund, FTX Future Fund, ambition was to donate $1B in new projects.
  • After FTX’s collapse, the employees of FTX Future Fund all resigned.

Sam Bankman Fried, the ex-CEO of FTX, was once one of the wealthiest people in crypto, with an estimated net worth of $17.2B before his empire came all crashing down in November 2022. The son of two Stanford law professors who studied physics at MIT and traded ETFs before switching to crypto in late 2017, Bankman-Fried was known for his generous persona, painted himself as the Robin Hood of crypto, who wanted to become so rich that he would eventually give all his wealth away. But how much of this was just a facade?

Bankman-Fried initially made his wealth through arbitrage opportunities in the crypto industry he exploited at Jane Street. He took advantage of the price difference of Bitcoin, which traded at a higher 10% premium in Japan compared to the U.S. The opportunity was there to earn 10% every day by buying bitcoin on a U.S. Exchange and sending it to a Japanese exchange to sell. With this strategy, wealth accumulated from $10,000 would turn to $1 billion in less than four months.

At just 30 years old, Sam Bankman Fried went from buying his first Bitcoin to becoming a crypto billionaire. His main goal? To give all his earnings away to charity.

How Much Did SBF Donate To Charity?

According to a report from Sequoia, SBF had adopted the philosophy that “he was going to get filthy rich, for charity’s sake.” According to an interview with CNBC, SBF gave $100M away in 2022 to charity. His motto is effective altruism; he wanted to make as much money as possible so he could donate as much out as he could to the world’s most efficient charities.

SBF hasn’t been very good with donating his billions away. In fact, the most significant donations he has made are political. According to Open Secrets, a platform following donations in politics, SBF is the 6th largest contributor who donated over $36M to Democrats and$235,200 to Republicans.

The FTX Future Fund, his philanthropy organization, claims to have committed over 160 million in grants but does not specify where these grants have gone. Following the FTX bankruptcy proceedings, The FTX Future fund’s entire staff resigned on the 11 of November. According to their resignation letter, there are many grants the fund will be unable to honor.

The fund has had incredible ambitions, announcing earlier in the year, that they would invest $1 billion in new projects averaging 100M a year.

Nathan Young, the director of Head of Forecasting at Zeitgeist, a crypto prediction market that appears to be one of the funds to have received $182K by FTX Future Fund, has expressed on Twitter that he is horrified by the whole charade.

I am more than aware that I am funded by @ftxfuturefund. And likely the fraud was already happening when the money was donated. That weighs on me.

I am horrified by the arrogance of this whole charade. And by its all the people it will hurt.

— Nathan 🔍 (@NathanpmYoung) November 11, 2022

FTX 32 Billion Dollar Collapse

Bankman-Fried’s $32B fortune evaporated after revelations of massive illiquid assets on Alameda’s & FTX’s balance sheets. It is reported that FTX had illegally siphoned user funds from the exchange to Alameda.

“I’m deeply sorry that we got into this place and for my role in it,” Bankman-Fried tells employees after his resignation. “I Fucked Up”.

In an interview published by Bloomberg, the secretary of the US Treasury also commented on FTX’s collapse.

“It shows weakness in the entire sector,” Yellen said. ” The notion that you could use the deposits of customers of exchange and lend them a separate enterprise that you control to do risky leveraged investments – this wouldn’t be something that’s allowed.

Go to Source


Elon Musk Says Sam Bankman-Fried Probably Donated Over $1B To Support Democratic Elections



Elon Musk Says Sam Bankman-Fried Probably Donated Over $1B To Support Democratic Elections
  • Elon Musk hints on his official Twitter account that SBF may have donated more than $1B to the Democratic elections.
  • SBF the ex-CEO of FTX confirmed that he has made undisclosed donations to the republican party, and donated the same amount to both parties.
  • Republican Senator Ted Cruz also called FTX “a Bernie Maddof style fraud that cost investors Billions”.

Sam Bankman-Fried, the ex-CEO of now-bankrupt exchange FTX and FTX.US, is said to have donated “dark money” to the democratic party. Elon Musk took to Twitter to say that he believes the undisclosed number of democratic party donations probably reached over $1B, whereas only $40M were disclosed.

That’s just the publicly disclosed number. His actual support of Dem elections is probably over $1B. The money went somewhere, so where did it go?

— Elon Musk (@elonmusk) December 3, 2022

In a recent interview with crypto journalist Tiffany Fung, SBF stated that he donated to both parties equally.”I donated to both parties. I donated about the same amount to both parties,” Bankman-Fried tells Tiffany Fung on a phone interview.

“All my Republican donations were dark,” he said, referring to political donations that are not publicly disclosed. “The reason was not for regulatory reasons; it’s because reporters freak the fuck out if you donate to Republicans. They’re all super liberal, and I didn’t want to have that fight.”

As SBF admits that some of the donations were not publicly disclosed, it seems likely that more non-publicly disclosed donations to the democratic party.

Undisclosed donations have been made possible by the supreme court’s decision in the Citizen United case, which allows donors to donate anonymously. Since this decision, more than $1bn have poured into federal elections since 2010.

Elon Musk is very vocal on Twitter regarding the SBF case and the FTX bankruptcy scandal. On 13th of November Musk tweeted to hint that SBF is a major donor on the democratic party therefore he believes there will be no investigation by the SEC towards the exchange.

Republican Senator Ted Cruz also called FTX “a Bernie Maddof style fraud that cost investors Billions”.

On December 1st Senate held a hearing to discuss and urge lawmakers to act quicky in installing a regulatory framework for digital assets.The hearing was hosted by the Senate Agriculture Comittee and did not include the main person at the center of this scandal, CEO Sam-Bankman Fried. The person invited to testify was Rostin Banham, the Chairman of Commodity Futures Trading Commission (CFTC), agency that regulates the derivate markets. Benham called on immediate oversight of most crypto markets and “comprehensive market regulation.”

Benham’s testimony is controversial as he had a very close working relationship with Bankman-Fried over the last year. The Bill advocated in the hearing was the same one that Bankman-Fried encouraged himself earlier this year which has been questionable.

Denis Keheller, the president of advocacy group Better Markets argued over the influence SBG would have had on the CFTC. It is unclear how much access influence Sam-Bankman Fried may have bought at the agency.

“When something like this happens, typically you have an overreaction of elected officials of the need to crack down on the industry,” he says. “Instead, this hearing is to push a bill that was endorsed and pushed by FTX.”

Go to Source

Continue Reading


FTX’s Sam Bankman-Fried Knew More About Alameda Research Finances Than Let On: Forbes Report



FTX’s Sam Bankman-Fried Knew More About Alameda Research Finances Than Let On: Forbes Report
  • A report by Forbes reveals that Sam Bankman-Fried knew about Alameda Research’s financial dealings.
  • SBF previously denied being “deeply aware” of Alameda’s finances. 
  • The former FTX chief regularly shared documents related to Alameda with Forbes over the past 2 years. 
  • The report indicates that SBF was well aware of Alameda’s business activities. 

An exclusive report published by Forbes has shed light on information that is in contradiction with recent claims made by Sam Bankman-Fried, the man behind the bankrupt crypto exchange FTX. 

Sam Bankman-Fried was aware of Alameda’s finances

In an interview at the DealBook Summit, SBF claimed that he was surprised by how big Alameda’s position was, referring to the risky trades made by his quantitative trading firm. The disgraced CEO tried to avoid accountability for Alameda’s actions by claiming that he was not involved in its day-to-day operations. “Alameda’s finances I was not deeply aware of. I was only surface-level aware of Alameda’s finances” he claimed. 

However, the report by Forbes provides an insight into the discussions they had with SBF in order to calculate his net worth for their annual World’s Billionaires list. During these discussions, Bankman-Fried shared several details that indicated that he was in fact well aware of Alameda Research’s finances. 

In order to prove his net worth, SBF detailed some of Alameda’s major holdings and several transactions involving Solana and Serum tokens as well as the notorious FTT. Some of these details were shared as recently as August 2022. The level of information found in the documents shared by Sam Bankman-Fried suggested that he knew more about Alameda than he revealed during his controversial interview. The former FTX CEO included details about his quant trading firm’s funds along with its token holdings, which at the time included 53 million SOL, 176 million FTT, and more than 3 billion SRM. According to this, the value of his share of Alameda’s funds under management was $8.6 billion. 

FTX's Sam Bankman-Fried Knew More About Alameda Research Finances Than Let On: Forbes Report 11

While it is still unclear as to how involved Sam Bankman-Fried was in the day-to-day operations at Alameda Research, the detailed description of the trading firm’s finances shared by him suggests that he knew more than he let on. 

Go to Source

Continue Reading


Mike Novogratz’s Galaxy Digital might buy crypto custodian GK8 from Celsius



Mike Novogratz’s Galaxy Digital might buy crypto custodian GK8 from Celsius


  • Galaxy Digital won a bid to buy one of Celsius’s assets as part of bankruptcy proceedings for the crypto lender.
  • Mike Novogratz’s company will buy GK8, a custodial business that Celsius acquired over a year ago in November 2021.
  • The custodian plans to launch crypto trading and lending for institutional investors.

Galaxy Digital submitted a successful bid for GK8, a crypto custodial service listed as an asset by Celsius during the lender’s bankruptcy proceedings. Both entity did not disclose the acquisition sum at press time. 

GK8 was acquired by Celsius in November 2021 when the bull run was near its peak. Months after, the lender was crippled by slumped crypto prices and Terra exposure. Celsius paused withdrawals shortly after LUNA and UST imploded in May, before declaring bankruptcy in July,

CEO Mike Novogratz said in a statement that adding GK8 to Galaxy Digital’s businesses offers a key ingredient for growth. Novogratz also addressed concerns regarding possible conflict of interest from the deal, ensuring that “clients will have the option to store their digital assets at or separate from Galaxy”.

Adding GK8 to our prime offering at this pivotal moment for our industry also highlights our continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner.

Galaxy will also expand its workforce by some 40 employees as part of the deal. The firm hopes to onboard blockchain developers and cryptographers to name a few.

Galaxy Digital scoops Celsius asset after $76.8 million FTX exposure 

The digital asset firm reported losses in Q3 earnings after weathering contagion from Terra’s $40 billion crash. Galaxy’s earning report also revealed exposure to the bankrupt crypto exchange FTX. 

EWN reported that Novogratz’s firm tried to withdraw $47.5 million of the total sum from FTX before Sam Bankman-Fried’s exchange froze withdrawals.  The company

Go to Source

Continue Reading
Home | Latest News | Cryptocurrency | Ethereum | Sam Bankman Fried’s FTX & Alamada Empire Collapsed. How Much Did He Actually Donate To Charity In The End?