Effective altruism: Crypto billionaire wants to donate entire fortune

Forbes estimates Bankman-Fried’s net worth at around $24 billion

The crypto billionaire wants to give away 99 percent of his annual income

Despite his wealth, Bankman-Fried lives a simple lifestyle

This is how Sam Bankman-Fried became a crypto billionaire

Few people have become a billionaire as quickly as Sam Bankman-Fried. Until his 30th birthday in March 2022, Bankman-Fried was ranked number one on Forbes’ “30 under 30” list. The magazine estimates the entrepreneur’s fortune at around 24 billion US dollars (as of April 11, 2022). As Bankman-Fried told Business Insider, that estimate may still be underestimated.


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Bankman-Fried built his fortune with the FTX exchange, which he co-founded in 2019 and is now one of the largest cryptocurrency exchanges in the world. Prior to his entrepreneurial success, Bankman-Fried earned a physics degree from MIT and got a job at Wall Street trading firm Jane Street in 2014. However, over time he realized that the existing crypto exchanges were not good enough, so he co-founded the FTX exchange with co-founder Gary Wang – also an MIT graduate. In the past few months, the Bahamas-based crypto trading venue has reached a valuation of $32 billion.

Bankman-Fried plans to donate 99 percent of his fortune

Now the self-made billionaire plans to give away most of his fortune. Despite his large fortune, the 30-year-old leads a rather simple lifestyle. Now, Bankman-Fried tells Bloomberg that, in the spirit of effective altruism, he plans to keep just 1 percent of his income each year. This equates to around $100,000 a year. The crypto billionaire got to know effective altruism during his studies. This philosophy uses mathematical calculations to determine how people can do the most good with their money and time.

Bankman-Fried was particularly fascinated by the concept of “earning to give,” which is why he donated 50 percent of his income to animal welfare every year while he was on Wall Street. As recently as February, after Russia invaded Ukraine, Bankman-Fried tweeted that its crypto exchange was making cash available to all Ukrainian users.

The young crypto billionaire lives so simply

And indeed, the young billionaire does not squander his fortune on a luxurious lifestyle. His lifestyle is more like that of a student, according to Bloomberg. He drives a Toyota Corolla and when he’s not working in the office he usually lives in an apartment, in a prime location, but with about ten roommates. “There are no more effective ways to make yourself happier by spending money. I don’t want a yacht,” Bankman-Fried told Bloomberg.

E. Schmal / Editor finanzen.net

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