The Fall of Sam Bankman-Fried

Summary

Sam Bankman-Fried's rise and fall in the cryptocurrency industry, from the establishment of FTX and Alameda Research to the revelation of one of the biggest crypto scams, is detailed alongside the upcoming trial that will expose the dark side of cryptocurrency and finance.

Abstract

The article titled "The Fall of Sam Bankman-Fried" delves into the dramatic downfall of the crypto entrepreneur, who was once hailed as a rising star for founding FTX and its associated hedge fund, Alameda Research. The narrative quickly shifts from his initial success, where FTX became a leading platform for crypto trading, to the unraveling of his empire when it was discovered that he used the platform's native cryptocurrency, FTT, as collateral for substantial loans. The report highlights the irony in Bankman-Fried's espoused beliefs in utilitarianism and altruism, contrasting them with the reality of his actions. As the case progresses, the article promises to provide further insights into the scandal, emphasizing the broader implications for the cryptocurrency industry and the financial sector at large.

Opinions

The author views Sam Bankman-Fried's actions as part of a long line of crypto scams, putting FTX in the same category as notorious schemes like OneCoin and Bitconnect.
There is a clear sense of skepticism regarding Sam's philosophical stances on utilitarianism and altruism, suggesting that these beliefs were not reflected in his business practices.
The article implies that the upcoming trial is significant not just for uncovering the truth behind FTX's collapse but also for shedding light on the systemic issues within the cryptocurrency and finance industries.
The author seems to have a cynical view of the mega-rich and their strategic donations for the 'greater good,' indicating a perceived discrepancy between their public image and private dealings.
The use of imagery from Envato Elements suggests a visual narrative that complements the article's portrayal of the rise and fall of a crypto magnate.

How it started

Sam founded FTX and it’s hedge fund associate Alameda Research not many moons ago and pretty much hit the stratosphere. FTX was pitched as the safe option when it came to Crypto trading.

Shortly, FTX along with Binance would pretty much process most crypto trades worldwide and Sam amassed BILLIONS.

Sam studied Utilitarianism, the idea that moral action is what accomplishes the most good for the most amount of people. He also believed in Altruism, convincing the mega-rich to donate strategically for the ‘greater good’

What a load of sh*t

Image from Envato Elements

How its going

In late 2022 his empire collapsed. Coin desk reported that he held billion’s in FTX’s own cryptocurrency FTT which was being used as collateral for loans amounting to hundreds of millions of dollars.

This then prompted a ‘run’ on FTX and as they say, goodnight Vienna.

On Tuesday, Bankman-Fried will go on trial. Most people are just keen to hear what happened and how it all came about.

For others, it will lay bare the dark side of Cryptocurrency and Finance in general.

I will be writing more on this topic throughout the coming weeks as the case progresses.

The Fall of Sam Bankman-Fried

The darkside of Cryptocurrency and Finance in general.

How it started

How its going