From Crypto Billionaire to Fish Trader – Convicted FTX CEO Sam Bankman-Fried Navigates Prison Economy

Sam Bankman-Fried, the disgraced founder of the now-defunct crypto exchange FTX and trading firm Alameda Research, has found an unlikely replacement for his cryptocurrency trading days – trading mackerel fish in New York’s Metropolitan Detention Center. This unlikely shift in economic activity was reported by the Wall Street Journal, citing sources familiar with the matter.

The former Jane Street trader, once living a luxurious lifestyle in a $30 million Bahamas penthouse, is now adapting to the economic realities of prison life. Within the confines of federal prisons, mackerel fish, or “macks,” have become the unofficial currency following a ban on cigarettes in 2004.

The use of tangible commodities such as mackerel as currency shows a unique side to prison economics, where inmates have adapted to the absence of traditional money. However, even within these conditions, the outside world’s inflationary pressures and prison demand are evident, with a pouch of mackerel filets now costing $1.30 in the Brooklyn jail’s commissary, a significant increase from $1 in 2020.

Bankman-Fried’s fall from grace began a little over a year ago, when his leadership caused to the collapse of FTX and losses of billions for customers, which prosecutors later dubbed “one of the biggest financial frauds in U.S. history.” He was convicted on November 2nd on all seven criminal counts of defrauding customers, lenders, and investors of FTX, his former crypto exchange.He now faces a sentencing date on March 28th and could be looking at up to 115 years in prison.

Bankman-Fried is currently sharing a cell with the former Honduran President Juan Hernández and a former senior Mexican police officer. Despite his circumstances, he continues to offer crypto tips to prison guards, according to sources.

Bankman-Fried is not alone in using “macks” as currency. Prison consultant Bill Baroni, who has spent time in jail himself, told the WSJ that he paid four macks for his own haircut. He even quipped, “The mack currency system is far more stable than crypto.”

Controversial tech figure Martin Shkreli, known as “pharma bro,” who has served over four years in federal prison, confirmed the widespread use of macks in U.S. prisons. In a comparison of the value hierarchy within prison, he noted that mackerel packets are the most sought-after trading commodity since the ban on tobacco products, followed by postage stamps and soup packets.

Despite the harsh reality, Bankman-Fried’s spokesperson, Mark Botnick, told the WSJ, “Sam’s doing the best he can under the circumstances.” With no sign of release in sight, it seems that the former crypto billionaire will continue his mackerel trading days for the foreseeable future.