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Sam Bankman-Fried spent a fortune. Now, lawyers say 'the emperor had no clothes.' Here's where the money went.

Business Insider Logo By lvaranasi@insider.com (Lakshmi Varanasi) of Business Insider | Slide 1 of 7:  At his peak, Sam Bankman-Fried's net worth was $26 billion. He spent his money on properties, political donations, and funding sports teams. Here's a list of many of the places where Bankman-Fried is reported to have spent his money. Sam Bankman-Fried told Bloomberg in April that years down the road, he'd subsist on $100,000 a year — that's it.He'd keep a small percentage of the billions he had generated from his cryptocurrency empire and donate the rest. Bankman-Fried billed himself as an effective altruist, a person who would rack up stacks of money — or coins— to one day put it all toward the betterment of the world. And he donated money to several organizations founded on the principles of so-called effective altruism. But Bankman-Fried also wrote out big checks to sports teams, property owners, and political leaders. His spending appeared to reflect a desire to buy influence as much as it has reflected his philosophical beliefs. It all came crashing down in early November, when Bankman-Fried saw the bulk of his net worth drop from $15.6 billion to $1 billion in a single day — after news broke that his cryptocurrency exchange, FTX, needed a bailout.Now, it's come out that as much as $2 billion in customer funds are missing — and questions are arising over just how Bankman-Fried bankrolled his high-end lifestyle, with lawyers now arguing that the former mogul, known as SBF, appeared to have run FTX like a "personal fiefdom."Those lawyers are helping guide FTX through the bankruptcy process, where customers hope they can recover at least some of their funds after FTX filed for bankruptcy and Bankman-Fried stepped down as CEO. Some of those customer funds — possibly $300 million — might have found their way to the Bahamas to buy pricey homes for FTX executives, lawyers have argued.Sullivan & Cromwell restructuring partner James Brumley, a lawyer on FTX's bankruptcy team, told a US court this week that "substantial amounts of money were spent on things not related to the business," a recording of the Tuesday hearing reviewed by Insider showed.A team of lawyers is now working to track down FTX's assets to start repaying the firm's creditors. The company's new CEO, John J. Ray III, a lawyer who's guiding it through bankruptcy, said Tuesday that FTX would reorganize or sell FTX's assets around the world and had already received interest from potential buyers.Meanwhile, Bankman-Fried will likely not be making major donations any time soon. Here's a list of how he spent some of his once-massive fortune.Read the original article on Business Insider

Sam Bankman-Fried spent a fortune. Now, lawyers say 'the emperor had no clothes.' Here's where the money went.

  • At his peak, Sam Bankman-Fried's net worth was $26 billion.
  • He spent his money on properties, political donations, and funding sports teams.
  • Here's a list of many of the places where Bankman-Fried is reported to have spent his money.

Sam Bankman-Fried told Bloomberg in April that years down the road, he'd subsist on $100,000 a year — that's it.

He'd keep a small percentage of the billions he had generated from his cryptocurrency empire and donate the rest. 

Bankman-Fried billed himself as an effective altruist, a person who would rack up stacks of money — or coins— to one day put it all toward the betterment of the world. And he donated money to several organizations founded on the principles of so-called effective altruism. 

But Bankman-Fried also wrote out big checks to sports teams, property owners, and political leaders. His spending appeared to reflect a desire to buy influence as much as it has reflected his philosophical beliefs. 

It all came crashing down in early November, when Bankman-Fried saw the bulk of his net worth drop from $15.6 billion to $1 billion in a single day — after news broke that his cryptocurrency exchange, FTX, needed a bailout.

Now, it's come out that as much as $2 billion in customer funds are missing — and questions are arising over just how Bankman-Fried bankrolled his high-end lifestyle, with lawyers now arguing that the former mogul, known as SBF, appeared to have run FTX like a "personal fiefdom."

Those lawyers are helping guide FTX through the bankruptcy process, where customers hope they can recover at least some of their funds after FTX filed for bankruptcy and Bankman-Fried stepped down as CEO

Some of those customer funds — possibly $300 million — might have found their way to the Bahamas to buy pricey homes for FTX executives, lawyers have argued.

Sullivan & Cromwell restructuring partner James Brumley, a lawyer on FTX's bankruptcy team, told a US court this week that "substantial amounts of money were spent on things not related to the business," a recording of the Tuesday hearing reviewed by Insider showed.

A team of lawyers is now working to track down FTX's assets to start repaying the firm's creditors. The company's new CEO, John J. Ray III, a lawyer who's guiding it through bankruptcy, said Tuesday that FTX would reorganize or sell FTX's assets around the world and had already received interest from potential buyers.

Meanwhile, Bankman-Fried will likely not be making major donations any time soon. Here's a list of how he spent some of his once-massive fortune.

Read the original article on Business Insider
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