Bankman’s Background and Credentials
- Yale Law School graduate (1980).
- Licensed attorney and psychologist.
- 35-year tenure as a Stanford Law School professor.
- Leading scholar in U.S. tax policy with multiple testimonies before Congress.
- Authored numerous scholarly works on federal income taxation.
Early Involvement in FTX Group
- Provided legal and business advice to Alameda from 2018.
- Leveraged his legal reputation and familial ties to influence FTX Group’s operations.
- Connected FTX Group to its primary accounting and law firms.
- Referred to FTX Group’s organization as “our corporate structure.”
Formalization of Role
- By January 2021, served as a de facto officer, director, and/or manager of multiple FTX entities.
- December 2021: Became Senior Advisor to the FTX Foundation (later renamed FTX Philanthropy).
Influence and Decision-Making
- Played a pivotal role in executive-level decisions.
- Selected law and accounting firms for the FTX Group.
- Involved in hiring processes and strategic discussions.
- Authorized significant expenses and payments.
Financial Benefits and Perks
- Lobbied for a salary increase from $200,000 to $1M/year.
- Received gifts, properties, and stock options worth millions.
- Made a cameo in a 2022 FTX Super Bowl commercial.
Tax and Charitable Endeavors
- Played a key role in navigating tax issues for the FTX Group.
- Directed millions in charitable donations, including to Stanford University.
- Oversaw the “FTX Million Dollar Hackathon and Crypto Summit.”
Ignoring Red Flags and Cover-Ups
- Overlooked significant operational and financial red flags.
- Participated in efforts to squash a whistleblower complaint.
- Continued involvement despite knowledge of the FTX Group’s shaky financial state.
Final Days Before Bankruptcy
- November 2022: Flew to The Bahamas to find capital sources for the FTX Group.
- Involved in last-minute efforts to salvage FTX Trading through a sale to Binance.
- To Fried: “I’m not sure how much more I can give without causing problems for me or FTX.”
- To Singh: “We need to be careful. The more we give, the more attention we draw.”
- To SBF: “We are so touched by this gift. Mom is announcing retirement, which she would not have done otherwise.”
- To SBF and Fried: “[t]he easiest way is to add 10M to the 250M loan Sam has from Alameda. Then, Sam gifts the money. No current tax on either transaction. Eventually, Sam recognizes income when the loan is paid off or cancelled, at the dividend/capital gain rate, but that can happen in a year when he donates a lot, offsetting some or all of the tax.”