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Crypto giant FTX to file for bankruptcy, CEO Sam Bankman-Fried steps down

“In less than a week, Sam Bankman-Fried's $16 billion fortune evaporated”

“New York(CNN Business) Sam Bankman-Fried woke up on Monday still a billionaire, even as his cryptocurrency empire was beginning to unravel. By Friday, his fortune was completely wiped out.

Based on net worth calculations by Bloomberg, Bankman-Fried was worth about $16 billion at the start of the week. But as his crypto exchange, FTX, collapsed, the value of his assets was reduced to zero in what Bloomberg called "one of history's greatest-ever destructions of wealth."

“The crypto giant FTX and its affiliated companies have started the process of filing for Chapter 11 bankruptcy, with founder Sam Bankman-Fried stepping down as CEO.

The filing represents a staggering turn for the cryptocurrency exchange, once reportedly valued at $32 billion and seen as the face of the industry thanks to its voluminous marketing and advertising efforts.

The resignation of Bankman-Fried, 30, is stunning. He was a crypto wunderkind who graced the cover of Forbes and Fortune and had emerged as a major Democratic donor and a leader of what has been dubbed the "effective altruism" movement, which sought to reshape philanthropy.”

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by Anonymousreply 23December 13, 2022 12:29 PM

Has Kanye weighed in?

by Anonymousreply 1November 11, 2022 8:07 PM

Why do people do this in the first place? Give someone a net worth of an astonishing $16 bn when it isn't even real. The media should be doing more due diligence on crypto.

by Anonymousreply 2November 11, 2022 11:43 PM

R2 Ha. The media promoted crypto, esp. CNBC. Watch them take no responsibility now. They're despicable.

by Anonymousreply 3November 11, 2022 11:47 PM
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by Anonymousreply 4November 11, 2022 11:50 PM

To his credit, he never personally lived like a Billionaire and drove a Corolla and slept on a beanbag. To his detriment, he should have cashed out even a fraction of his holdings before the going got tough and he never would have had to have worked again.

by Anonymousreply 5November 11, 2022 11:52 PM

[quote]To his credit, he never personally lived like a Billionaire and drove a Corolla and slept on a beanbag. To his detriment, he should have cashed out even a fraction of his holdings before the going got tough and he never would have had to have worked again.

While I agree with this statement, for him specifically, it's a lot harder to do.

Timing is everything. He either would have had to sell so long ago that there wasn't a hint of trouble - so why would he - or he risks insider trading charges because he sold when he had knowledge that there were concerns. Given the general mindset of the tech bros who all beat the drum for crypto (see dozens of DL threads), it's unlikely he would have seen any direction but up when there weren't any hints of trouble.

by Anonymousreply 6November 12, 2022 12:03 AM

Regardless of success or failure you should always cash out half just in case.

by Anonymousreply 7November 12, 2022 1:50 AM

[quote]Regardless of success or failure you should always cash out half just in case.

Again, don't disagree, but as I pointed out, that cautious mindset is hardly the psychological profile of tech bros or crypto evangelists.

by Anonymousreply 8November 12, 2022 1:51 AM

Easy come, easy go. Hope crypto dies.

by Anonymousreply 9November 12, 2022 1:54 AM

You don't think he cashed out and stashed away some of his money, R5?

by Anonymousreply 10November 12, 2022 1:59 AM

Poor kid: Speeding uncontrollably, on CAMERA

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by Anonymousreply 11November 19, 2022 8:55 PM

The Judy Garland Diet

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by Anonymousreply 12November 19, 2022 8:57 PM

Is this a legacy of these Zoomers/young Millennials’ Aderral-fed childhood?

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by Anonymousreply 13November 19, 2022 8:59 PM

R5 You have to be pretty gullible to lap up very calculated PR like that.

by Anonymousreply 14November 19, 2022 9:02 PM

So they’re all on meth. Rumors of amphetamine use among top FTX and Alameda brass have run wild in recent days. In a resurfaced podcast interview from October 2020, Bankman-Fried himself admitted to experimenting with Adderall and other amphetamines.

Bankman-Fried said nootropics, or brain-boosting drugs, can be “life-changing,” though the effects for most aren’t much “different than coffee.”

“In general, probably half of all people or more should be taking meds of some kind, because they just make your life a lot better,” Bankman-Fried said while touting the benefits of Adderall and other drugs.

by Anonymousreply 15November 19, 2022 9:11 PM

They practice polygamy. In posts widely circulating on social media, the account holder, purported to be Ellison, wrote about her “foray into poly” — a reference to polygamy. Ellison, Bankman-Fried are others are said to have been in a “polycule,” or network of interconnected romantic relationships with multiple participants.

“When I first started my foray into poly, I thought of it as a radical break from my trad past, but tbh I’ve come to decide the only acceptable style of poly is best characterized as something like ‘imperial Chinese harem,’” the account’s owner said.

“None of this non-hierarchical bulls—t; everyone should have a ranking of their partners, people should know where they fall on the ranking, and there should be vicious power struggles for the higher ranks.”

by Anonymousreply 16November 19, 2022 9:16 PM

Their lifestyle, eg use of speedy substances, non-exclusive sexual/romantic relationships, doesn’t bother me at all

Let them experiment while they’re still young

How they’re using/ abusing other people’s money, however, is a matter of concern

by Anonymousreply 17November 20, 2022 6:01 AM

According to therealcpa_ey, FTX court filings reveal that they didn't keep proper books and records for digital assets and that they used customer funds to purchase properties in the Bahamas.

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by Anonymousreply 18November 20, 2022 6:18 AM

You have to be on a lot of meth to fuck Ellison

by Anonymousreply 19November 23, 2022 7:59 PM


"FTX’s Sam Bankman-Fried Is Arrested in the Bahamas

A statement by the government of the Bahamas said Mr. Bankman-Fried was arrested after prosecutors in the United States filed criminal charges."

by Anonymousreply 20December 13, 2022 12:44 AM

The idea that he wouldn't hide billions all over the world is ludicrous. He's not poor.

by Anonymousreply 21December 13, 2022 12:46 AM

[bold]FTX founder Sam Bankman-Fried arrested in the Bahamas after U.S. files criminal charges[/bold]

FTX founder Sam Bankman-Fried was arrested by Bahamian authorities Monday evening after the United States Attorney for the Southern District of New York shared a sealed indictment with the Bahamian government, setting the stage for extradition and U.S. trial for the onetime crypto billionaire at the heart of the crypto exchange’s collapse.

His arrest is the first concrete move by regulators to hold individuals accountable for the multibillion-dollar implosion of FTX last month.

Before his arrest was announced, Bankman-Fried had been expected to testify virtually before the House Financial Services Committee on Tuesday, but his attorneys told CNBC that he will not appear. Rep. Maxine Waters, D-Calif., who oversees that committee, said that she was “surprised” at his arrest, and disappointed that Congress would not be able to hear from him on Tuesday.

Damian Williams, the U.S. Attorney for the Southern District of New York, said on Twitter that the federal government anticipated moving to “unseal the indictment in the morning.” CNBC has confirmed that the charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.

Meanwhile, the Securities and Exchange Commission has initiated a separate set of charges against Bankman-Fried, relating to “violations of our securities laws, which will be filed publicly tomorrow in the Southern District of New York,” enforcement director Gurbir Grewal said in a statement....

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by Anonymousreply 22December 13, 2022 12:27 PM

So much for the libertarian dream of crypto as an unregulated paradise. Which never made sense to me - governments were always going to step in and they legitimately have the power to.

by Anonymousreply 23December 13, 2022 12:29 PM
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