Everyone likes a story about an underdog, someone out of the ordinary an unlikely genius who comes once in a lifetime, someone who wants to change the world for good… this is not one of those stories.
In the span of about one week, Sam Bankman-Fried went from being a crypto billionaire to bankruptcy. In November 2022, one of the biggest tales of financial fraud was unraveling and it all centered around one man and a web of lies spun over the course of a few years.
Prior to the financial downfall of FTX, Sam Bankman-Fried held significant positions on wealth rankings. He secured the 41st spot among the wealthiest Americans in Forbes’ 400 list and was also recognized as the 60th wealthiest individual globally by The World’s Billionaires. At the peak of his financial success, his net worth soared to a staggering $26 billion.
However, as of November 11, 2022, amid the unfortunate bankruptcy of FTX, the Bloomberg Billionaires Index reported that Bankman-Fried’s net worth had plummeted to zero. This abrupt change in fortune marked a dramatic shift from his earlier status as a billionaire.
Before the dissipation of his wealth, Bankman-Fried played an influential role in U.S. political circles. He made substantial contributions to political campaigns, openly supporting Democratic candidates while covertly extending support to Republican campaigns. Notably, he announced his intention to allocate approximately $1 billion toward the 2024 U.S. presidential election, signifying his significant involvement in the American political landscape.
On December 12, 2022, a pivotal event unfolded as Bankman-Fried was apprehended in the Bahamas and subsequently extradited to the United States. The turning point came when, on December 13, an indictment was unsealed by the U.S. District Court for the Southern District of New York. This indictment revealed a total of eight criminal charges against him, including allegations of wire fraud, commodities fraud, securities fraud, money laundering, and violations of campaign finance laws.
Subsequently, in February 2023, an additional four charges were announced, further intensifying the legal challenges facing Bankman-Fried. Despite these serious allegations, on December 22, he was released on a substantial $250 million bond. A crucial condition of his release was that he resided at his parents’ residence in California.
However, on August 11, 2023, a significant development occurred when his bail was revoked. This action was taken due to alleged attempts at tampering with witnesses, adding another layer of complexity to the legal proceedings surrounding Sam Bankman-Fried’s case.
Directed by: James Jani
Many people have become rich because they are excellent fakers and scammers. It’s miserable for those who are deceived. connections game
Like watching ‘The Big Short’. Hard to feel sorry for fools who failed to do due diligence and tried to get a chunk of the crypto pie only to lose their gamble (a.k.a. “investment”) to a bunch of nose picking millenials. The gamblers own personal greed was their guiding behaviour in all this. Definitely a lesson to be learned in all this.
Binance is next.
Scary is that most people don’t know if they’re even invested in FTX…because so many speculative hedge funds believed the hype created by the people who are the know it alls.