Sam Bankman-Fried Is One of Worldcoin's Early Investors: Is He Keeping an Eye on Investing From His Parents' House?

Sam Bankman-Fried, the former crypto billionaire once famous for his philanthropy and savvy investments, is back in the spotlight after OpenAI CEO Sam Altman launched his ambitious Worldcoin project on Monday.

What happened: Before Bankan-Fried's difficult legal situation, which placed him under house arrest following allegations of massive fraud involving $8 billion on his FTX trading platform, he was an investor who generously funded fledgling cryptocurrency and fintech projects

Worldcoin was one of them — but let's back up a bit.

Altman launched Worldcoin on Monday with a vision to create a globally inclusive identity and financial network, intending to blend AI, identity and finance, but the company was founded in 2019.

The Worldcoin project found significant support with an initial venture capital funding of $25 million in October 2021 that included high profile investors such as Andreessen Horowitz (a16z), Coinbase Global Inc COIN Ventures, Digital Currency Group and Bankman-Fried, according to Dealroom.

The project's value proposition at the time was that it was developing a physical device called an "Orb" to scan people's eyes to generate a "world ID", which attracted both interest and criticism.

Also read: OpenAI CEO Sam Altman launches Worldcoin: A bold crypto experiment at the intersection of AI, identity and finance

Why it matters: Bankman-Fried's involvement with Worldcoin in 2021 was emblematic of his aggressive investment strategy, which saw him "backing" struggling companies in the crypto industry in 2021 and early 2022.

His investments in 2022 included Voyager Digital, BlockFi, a 7.6% stake in Robinhood Markets Inc HOOD, and many others.

His current house arrest — he lives at his parents' house in Palo Alto — stands in stark contrast to his past successes. Bankman-Fried's legal challenges stem from accusations of exploiting the money of clients and investors for personal gain, charges that could see him spend decades in prison if convicted.

Read next: Is Sam Bankman-Fried a fan of Thanos? New lawsuit reveals FTX founder's plan to buy island in population annihilation scenario

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