Former FTX exchange founder navigates barter economy in prison, using packaged mackerel for services in a stark contrast to his previous life in cryptocurrency.
Life has taken a dramatic turn for Sam Bankman-Fried, the former crypto-billionaire and founder of the now-defunct FTX exchange. Once a prominent figure in the world of cryptocurrency, Bankman-Fried's new reality involves navigating the barter economy of prison life. Reports have surfaced that Bankman-Fried, adapting to his environment, is using packaged mackerel as a form of currency to obtain services within the walls of New York's Metropolitan Detention Center.
Bankman-Fried's shift from trading digital currencies to trading fish is a stark contrast to his previous life. In the absence of money, prisoners often resort to bartering goods for services, and Bankman-Fried is no exception. It has been reported that he recently traded four mackerel packets to get a haircut. This anecdote underscores the informal economic systems that emerge in places where traditional currency is not accessible.
Mackerel packets, colloquially known as "macks," have become a popular trading commodity in U.S. prisons. They sit atop a value hierarchy that includes other items like postage stamps and soup packets. The rise of mackerel as a form of currency dates back to the ban on cigarettes in federal prisons in 2004, which eliminated the previous go-to trade item.
Bankman-Fried's ability to quickly adapt to the economic realities of prison life is noteworthy. Sharing a cell with other high-profile inmates, he has had to find ways to navigate this new world. Despite his request to be released from prison while awaiting his sentencing hearing being denied, Bankman-Fried is finding ways to maintain a semblance of normalcy through these unconventional transactions.
As Bankman-Fried faces additional charges and awaits his upcoming sentencing, the use of mackerel as currency is a poignant reminder of the vastly different circumstances he now finds himself in. This barter system, while peculiar to those on the outside, is a practical takeaway for understanding the adaptability of economic systems in closed environments and the human ability to find alternatives when traditional options are stripped away.
The story of Bankman-Fried's fall from grace and his new life trading fish for haircuts is not just a curious detail, but a reflection on the resilience and resourcefulness that individuals can exhibit when faced with challenging and restrictive situations.
