Joseph Bankman's Role in FTX and Alameda Research

Joseph Bankman had a significant role in the operations of FTX and Alameda Research. He provided informal advice and recommendations, directed FTX towards legal and accounting firms, and participated in executive consultations. However, it wasn't until 2021 that he formalized his relationship with these entities by creating a document stating his pro bono legal work and consulting. Bankman eventually entered into a formal employment agreement with FTX US, receiving a salary of $200,000 per year plus bonuses. Notably, he initially claimed he was entitled to a $1 million salary, which was resolved after involving Sam Bankman-Fried and Barbara Freed in contract negotiations. Bankman and Freed also benefited from significant monetary compensation, including a $16 million mansion funded by FTX and personal expenses totaling $90,000.