It’s practically unheard of for rich people to give away their money, but this crypto billionaire gives away fortune like it’s no big deal. Sam Bankman-Fried is said to be a billionaire unlike any other. Because while most people earn to spend, this CEO earns to give his money away.
No, you won’t find him in a high-security office in Silicon Valley. And that’s because Bankman-Fried has made a name for his no-frills attitude when it comes to wealth. Despite brushing shoulders with high-profile celebrities and athletes, the young CEO lives comfortably. He drives a Toyota Corolla and has famously said he doesn’t want a yacht, unlike many of his peers.
Getting to know the man behind the money
Before Sam was making bank in crypto, he was a physics major studying at MIT. During this time, he took an interest in utilitarianism, which would eventually influence his idea of giving away money to charity.
After graduating, he took a job in Jane Street Capital, a trading firm specializing in ETFs. His interest in crypto carried on for the rest of his career. He eventually found himself working for the Centre for Effective Altruism before starting Alameda Research, a trading firm, in 2017.
Bankman-Fried was inspired by Bitcoin Cash when he attended a crypto conference in Macau in 2018. From there, in 2019, Bankman-Fried launched his own exchange platform, FTX. With a slogan of “by traders, for traders,” FTX has over one million users worldwide. The Bahamas-based software also averages a $10 billion daily trading volume.
The company reached a whopping $40 billion in value in January 2022. Because of this, he has been named the 32nd richest man globally by Forbes 400 List. And to put things in a clearer perspective, the crypto billionaire’s net worth is $25 billion.
Today, this man is one of the few, if not the only, crypto billionaire who gives away fortune.
A Robin Hood approach to wealth
He made his fortune off of the cryptocurrency craze in the 2010s but personally didn’t believe in the idea of growing his wealth for material items. In fact, rather than keeping money for himself, he is more interested in being the crypto billionaire who gives away fortune.
As one of crypto’s richest individuals, Bankman-Fried has considerable influence over the crypto scene. In fact, he testified in Congress last year to strengthen crypto regulations in the US.
He is a big believer in the concept of effective altruism, a utilitarian principle that believes in earning money to give it away. This concept works under the assumption that investing in scientific and lucrative projects can improve global well-being.
Because of this, tech-related programs from big companies are usually the ones heading charity projects. In fact, this concept is the same driving force behind the core projects of the Melina and Bill Gates Foundation, which seeks to eradicate malaria in Africa.
Too much bark, but no bite?
What sets the Bankman-Fried apart from other crypto bros is that he gives his money away. In fact, he is one of the few crypto billionaires who gives away fortune. But does that mean that he lives up to his promises?
Well, he hasn’t exactly been standing by his promises yet. The billionaire’s promise is simple: he wants to donate all of his wealth except the one percent that will help him live within his means. Currently, though, that pledge is still far from reality. He has only donated 0.1 percent of his wealth to global causes, ironically making him one of the least generous billionaires.
Whether the young CEO will live up to his promises is still an open question.
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