Sam Bankman-Fried started the cryptocurrency exchange FTX in 2019 at watched it all come crashing down in 72 hours.
Photo By Tom Williams/CQ-Roll Call, Inc via Getty Images
Bankman-Fried was once seen as the King of Crypto. He promised big returns for customers and investors and even tried to help the government impose regulations on the industry. That was until crypto giant Binance expressed concerns over FTX’s financial stability and falling crypto prices sparked a bank run, revealing FTX and its sister company Alameda Research were suspiciously working together to pay off debts, according to The New York Times — and leaving an $8 billion hole in its accounts.
FTX attracted major investors including SoftBank and BlackRock and boasted celebrity endorsements from the likes of Tom Brady and Shaquille “Shaq” O’Neal. Still, the company’s low-risk, high-reward business model appeared almost too good to be true. And it was.
In the wake of the FTX collapse, between $1 billion and $2 billion in client money has gone unaccounted for, according to Reuters.
SBF has since been arrested and charged with several counts of fraud, and prosecutors say he orchestrated “one of the biggest financial frauds in American history.” He could face up to 115 years in prison.
While the crypto scandal is still unfolding, here’s everything to know about Bankman-Fried.
Who Is Sam Bankman-Fried?
Before Sam…
