Samuel Bankman-Fried, co-founder and CEO of FTX, during his hearing before the US Senate Agriculture, Nutrition and Forestry Committee on February 9 in Washington (AFP/SAUL LOEB)
For once, Sam Bankman-Fried donned a suit and tie on Wednesday, abandoning his traditional hoodie and dark T-shirt for a hearing with US senators.
The parliamentarians had summoned the 29-year-old multi-billionaire to discuss the regulation of digital assets in his capacity as co-founder and managing director of the FTX cryptocurrency exchange platform.
Less than three years after its creation, the company has just been valued at 32 billion dollars, a capitalization that brings it closer to the giants Coinbase and Binance. The personal fortune of Mr. Bankman-Fried, who has become one of the most famous faces in cryptocurrencies, is estimated at nearly $25 billion by Forbes magazine, making him the 68th richest man on the planet.
“The tone was rather consensual,” the young boss told AFP. “Many senators sincerely want to know more about this market and the means that the government has to better supervise it”.
– From Hong Kong to the Bahamas –
The son of academics and a graduate in physical sciences from the prestigious Massachusetts Institute of Technology (MIT), Sam Bankman-Fried worked as a broker on Wall Street before moving, from 2017, towards cryptocurrencies.
He then observes significant price variations between the different exchange platforms and profits from them by buying and reselling digital assets at very high frequency.
Recently valued at $32 billion, FTX is now one of the largest cryptocurrency exchange platforms in the world (AFP/OLIVIER DOULIERY)
“At the beginning of 2018, there was a gap of 5% to 25% between American and Japanese trade,” he says. “There was gigantic demand for cryptocurrencies from Japan and not enough market makers to sustain supply,” driving Japanese prices higher.
The young entrepreneur created a cryptocurrency investment fund, Alameda Research, moved to Hong Kong, then launched FTX there with Gary Wang.
Mr. Bankman-Fried now resides in the Bahamas, where taxes are almost zero, and has moved his platform’s headquarters there. He justifies his place of residence by saying that it is “one of the few countries with a complete regime on the granting of cryptocurrencies”.
On Twitter, where he uses the pseudo SBF, and in his media interventions, Mr. Bankman-Fried champions more fluid access to the crypto market for the general public, particularly in the United States.
“It would be healthy for all players if there was a regulatory mechanism to obtain permits,” he defends, hoping that the US agency in charge of derivatives (CFTC) plays a more active role. A subsidiary for US customers, FTX US, opened in 2020.
The success of FTX has enabled the platform to forge prestigious partnerships, notably with newly retired American football legend Tom Brady and his wife, former Brazilian model Gisele Bündchen.
The group also offered an advertising insert for the Super Bowl on Sunday, promising prizes in bitcoins to viewers guessing the exact time at which the spot would be broadcast.
– Effective altruism –
Despite his billions, Mr. Bankman-Fried claims to impose a spartan lifestyle on himself, sleeping only four hours a night and having no intention of starting a family.
He identifies with the current of effective altruism, which aims to direct donations and resources in an optimal way thanks to a detailed analysis of their effects.
“The question is not only how to do good deeds in your lifetime, but what to focus on,” says the young man, who has pledged to donate almost all of the fortune he will have accumulated. .
He estimates that he has already given between 50 and 100 million dollars to causes such as the fight for animal welfare (he himself is vegan), against neglected tropical diseases or against global warming.
Asked about the ecological impact of bitcoin, potentially in contradiction with his commitment to the climate, the entrepreneur says he is convinced that the process of creating cryptocurrency as well as transactions will increasingly be made using renewable energies. .
Aware of the dizzying sums he brews, Mr. Bankman-Fried, who was one of the biggest donors to Joe Biden’s presidential campaign in 2020, has no problem with the amounts being made public.
“If you’re trying to have a strong positive impact on the world, those are things people are going to find out about,” he said.
© 2022 AFP
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