Fried Sam Bankman She monopolized the pages and ratings of the world’s youngest billionaires not so long ago. This Physics graduate from MIT would have touched the sky if he reached the age of thirty, with Wealth estimated at $26.5 billion With his name the end of 2021. The boy that everyone wanted to be in the picture with was an example of an American dream that had just become a nightmare.
Until this week, Bankman-Fried, or SBF as his relatives call him, was the CEO of FTX, the US cryptocurrency exchange that was the envy of half the world. Under his leadership it has become the world’s fourth largest group in cryptocurrency, but Poor management with the Alameda Research merger And Binance’s panic to save them ended with not only the company’s bankruptcy declaration, but also Bankman-Fried’s private account in the red.
It is no coincidence that he was known as The new Mark Zuckerberg. Only the Facebook creator (who doesn’t have his best moments) made such a fortune before his thirties, so this middle-class California native but far from being a millionaire since birth has won praise from the business world for a fine. Tino.
Zuckerberg’s “Cryptocurrency” or “The New Warren Buffett,” as “Fortune” baptized him in 2020, unanimously He is cited as the culprit in the FTX crashwhose sequels are not yet known.
He himself did not cover up and was very clear in apologizing after Binance announced that a much larger than expected hole was found in his accounts. “I’m sorry. That’s basically it. I screwed up, and I should have done better,” he admitted in a Twitter thread in which he provided his explanations.
1) I’m sorry. This is the most important thing.
I had sex, and I should have been better.
– SBF (SBF_FTX) November 10, 2022
It was he who failed to find an investment of $ 4 billion to avoid bankruptcy. Changpeng ZhaoBinance, the owner of Binance, was very close to contributing to it, but the complex financial engineering provided by SBF made them flee.
This is how the story ends with shades of ‘The Wolf of Wall Street’ mixed with That Zuckerberg mentioned earlier. It all started in 2014, when a recent MIT physics graduate became a judging agent at Jane Street Capitala financial services firm where he understood what leverage he had to activate to maximize returns on equity assets.
Only three years later, he was already riding the crest of the first wave of cryptocurrencies: he bought bitcoins in the United States, and sold them in Japan at a profit of 10%. was established Alameda Research And in May 2019 he was already working FTX, as a crypto asset trading company and as an exchange respectively. The first rescue attempt with investors’ money in the second, summer 2022, was one of the first nails in her coffin.
Major support for the Democratic Party
Under an aura of supposed transparency, Bankman-Fried watched his account grow exponentially and his gaze turned to Washington DC Pennsylvania Street.
In this 2022 election cycle, he has donated more than $40 million to various Democratic candidates (only billionaire George Soros has given more money to this cause) and He promised to contribute $1 billion to help defeat Donald Trump If he ran again to return to the White House in 2024. Such was his self-confidence that he signed multi-million dollar endorsement deals with teams like Miami Heat of the NBA (their stadium was to be christened the FTX Arena) or Mercedes Formula 1 Teamwhich was one of the first companies to file for bankruptcy that caused the “cryptocurrency earthquake”.
After the bankruptcy of FTX, it is estimated that he lost 96% of his fortune, although he still has to finish balancing his balance as he does not rule out that creditors will start knocking on his door. Sam Bankman-Fried has gone from being a world leader to an outcast.