This crypto-billionaire wants to give away all his wealth

Sam Bankman Fried.
Lam Yik / Bloomberg via Getty Images

FTX founder Bankman-Fried is one of the richest people in the world with assets of over $ 24 billion. But the billionaire does not care about luxury, but lives spartanly in the sense of “effective altruism”, as an interview with “Bloomberg” shows.

The philosophy is about helping as many people as possible. Bankman-Fried therefore plans to keep $ 100,000 a year for its cost of living and donate the rest.

But so far he has donated little to charity. Bankman-Fried says he will continue to maximize profits so far so he can do more good in the future.

As a mere 29-year-old, Sam Bankman-Fried has amassed a fortune of about $ 24.5 billion. That makes the American one of the 70 richest people in the world – but he does not let that hang out. In everyday life, the crypto-entrepreneur prefers a hoodie and t-shirt over a suit and tie, drives a Toyota Corolla and lives – when he is not in the office – in a shared apartment with about ten apartment mates. His spartan lifestyle, uncharacteristic of a billionaire, is in line with his plan as “crypto Robin Hood” to donate every dollar and bitcoin of his wealth to charity, according to a recent Bloomberg interview.

Bankman-Peace’s wealth can be attributed to the launch of its FTX exchange in 2019. The Bahamas-based cryptocurrency exchange has become one of the most popular cryptocurrency trading platforms in the world in three years and recently reached a valuation of $ 40 billion. But Bankman-Fried is not interested in extravagant yachts. “There are no longer really effective ways to make yourself happier by spending money,” Bankman-Fried told Bloomberg.

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The billionaire sees himself as “crypto Robin Hood”

Although he plans to maximize his profits, he does so, according to his own statements, in the sense of “effective altruism.” It is a philosophy that aims to find out, through careful analysis, how to use its resources to help as many people as possible. The cryptomogul’s plan is as follows: keep $ 100,000, which is one percent of his income, for his living expenses per year and donate the rest.

He sees himself largely as the “crypto Robin Hood” who beats the wealthy elite in their own game to win money back to the losers of capitalism. That sounds plausible in theory – but almost too good to be true. So far, the young entrepreneur has only donated a little to charity and invested the money more in the interest of his company, most recently with a $ 30 million Super Bowl ad, for example. Bankman-Fried rejects criticism, claiming that all he cares about is continuing to maximize profits so he can do as much good as possible in the future.

But the ideas of “effective altruism” are controversial, according to the report. Some say Wall Street is helping to perpetuate an unjust system, thereby destroying all the good that wealth can do. Others condemn that the sole purpose of the movement is to portray the rich as heroes.

Bankman-Fried said in an interview with “Bloomberg” that he had donated $ 50 million last year, among other things to fight the pandemic in India and global climate protection. This year, he plans to donate at least a few hundred million and up to a billion dollars. Bankman-Fried is particularly dedicated to problems that threaten humanity in the future. Asked if he ever doubts his plans, the billionaire has a clear answer: “It does not feel like a decision to me minute by minute.”

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