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Business & Money • Cryptocurrency

Sam Bankman-Fried

Sam Bankman-Fried, also known as SBF, is an American former cryptocurrency entrepreneur and the founder of FTX and Alameda Research.

By Ethan Anderson| Reviewed by Olivia Bennett, Standards & Fact-Checking Lead| Updated July 26, 2026|2 min read| Fact-checked

Sam Bankman-Fried, also known as SBF, is an American former cryptocurrency entrepreneur and the founder of FTX and Alameda Research. He was convicted in 2023 on federal fraud and money-laundering-related charges and sentenced in 2024 to 25 years in prison.

Early life and education

Sam Bankman-Fried was born in Stanford, California, in 1992. Reports describe him as the son of Stanford Law School professors and note that he studied at the Massachusetts Institute of Technology before entering finance and cryptocurrency.

FTX and Alameda Research

He founded Alameda Research in 2017 and later launched FTX in 2019. FTX grew into a major cryptocurrency exchange and made him a highly visible figure in the digital-asset sector.

Collapse of FTX

FTX collapsed in November 2022 after it could not meet customer withdrawal demands and bankruptcy proceedings began. Subsequent investigations alleged that customer funds had been misused to support Alameda Research and other expenses.

Criminal trial and sentencing

In November 2023, a federal jury convicted Bankman-Fried on seven counts, including fraud and money laundering-related offenses. In March 2024, he was sentenced to 25 years in prison and ordered to pay forfeiture.

Key facts

  • Founded FTX, a cryptocurrency exchange, and Alameda Research.
  • Became one of the most prominent figures in the cryptocurrency industry before FTX collapsed in 2022.
  • FTX filed for bankruptcy in November 2022 after a liquidity crisis and revelations of misused customer funds.
  • A U.S. jury found him guilty on all seven counts in November 2023.
  • He was sentenced in March 2024 to 25 years in prison and ordered to forfeit about $11 billion.
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Canadian context

FTX and Sam Bankman-Fried were widely covered in Canada because Canadian investors and cryptocurrency users were affected by the broader fallout from the exchange’s collapse and the resulting global scrutiny of crypto regulation.

Frequently asked questions

Who is Sam Bankman-Fried?
He is an American former cryptocurrency entrepreneur who founded FTX and Alameda Research and was later convicted of federal fraud-related charges.
What is Sam Bankman-Fried known for?
He is known for building FTX into a major cryptocurrency exchange and for his 2023 conviction in connection with its collapse.
When was he convicted?
A federal jury convicted him in November 2023 on all seven counts.
What sentence did he receive?
He was sentenced in March 2024 to 25 years in prison and ordered to forfeit about $11 billion.
What happened to FTX?
FTX collapsed in November 2022, filed for bankruptcy, and became the subject of investigations into the handling of customer funds.

References

  1. Reutershttps://www.reuters.com/technology/who-is-sam-bankman-fried-onetime-crypto-mogul-facing-decades-prison-2024-03-28/
    Supports: Biographical details, FTX founding context, and 2024 sentencing.
  2. U.S. Department of Justicehttps://www.justice.gov/archives/opa/pr/samuel-bankman-fried-sentenced-25-years-his-orchestration-multiple-fraudulent-schemes
    Supports: Sentence of 25 years, supervised release, and forfeiture order.
  3. BBC Newshttps://www.bbc.com/news/business-66990173
    Supports: Guilty verdict on seven counts and prison exposure context.
  4. Encyclopaedia Britannicahttps://www.britannica.com/money/Sam-Bankman-Fried
    Supports: Overview of FTX, Bankman-Fried’s role, collapse, conviction, and sentence.
  5. Biography.comhttps://www.biography.com/crime/a68080292/sam-bankman-fried
    Supports: FTX timeline, bankruptcy, and allegations about customer funds.