The Tragic Tale of Sam Bankman-Fried and the Cursed Exchange of FTX
Once upon a time, in a faraway land called California, there lived a young man named Sam Bankman-Fried. Sam was a brilliant and ambitious young man, who was determined to make a name for himself in the world.
In the kingdom of crypto, Sam found his calling. He quickly became known for his incredible intelligence and his unwavering dedication to his work. He spent long hours studying the ways of the crypto world, and before long, he had become one of the most respected and successful traders in all the land. Sam did not rest on his laurels. He founded a crypto exchange known as FTX.
FTX quickly became one of the most successful and respected exchanges in the kingdom. Its user-friendly interface and advanced features made it a favorite among traders of all levels, and its founder, Sam, was celebrated as a true hero of the crypto world. Many people flocked to Sam’s business, eager to take advantage of his expertise.
But little did they know, Sam had a secret plan. He had devised a clever scheme to defraud his investors, and he began to put it into action. First, Sam created a series of fake investment opportunities, claiming that they were sure to yield huge returns. He convinced his investors to pour their money into these “opportunities,” promising them that they would see huge returns in no time at all.
But in reality, Sam had no intention of making good on his promises. Instead, he used the money that his investors had entrusted to him to line the pockets of Democratic Party candidates, becoming the second-largest individual donor to Joe Biden in the 2020 presidential election, personally donating $5.2 million, and he donated $40 million, mostly to Democratic candidates, during the 2022 U.S. midterm elections.
And then, a fateful decision by another exchange, Binance, sealed FTX’s fate. Binance decided to sell a large amount of FTT, a coin that was closely tied to FTX. The sale caused the price of FTT to plummet, and many traders who held the coin on FTX lost a great deal of money. The news of the sale and the resulting losses caused panic among FTX traders. Many of them began to withdraw their assets from the exchange, and its market share continued to decline. In the end, FTX was unable to recover from the blow dealt by Binance. Its market share continued to decline, and the exchange was eventually forced to close its doors for good.
And so, the great exchange of FTX was no more, a cautionary tale of the dangers and challenges of the crypto world. Its founder, Sam Bankman-Fried, was free to hang out in the Bahamas and go on a press tour. Justice never caught up with him, and he was never punished for his crimes.
UPDATE: He is living under house arrest with his parents in Palo Alto, California.