Sam Bankman-Fried was the great reference in the financial world two years ago, but what promised to be a bright future in the field of cryptocurrencies for the young man was dynamited this Thursday by a court sentence for which he will spend the next 25 years in prison .
Today’s ruling resonates especially in the world of finance due to the youth of Bankman (32 years old), co-founder of the cryptocurrency platform FTX, which Now he will grow old behind bars and with the rejection of those who previously admired him due to his multiple crimes of fraud and money laundering.for which he was convicted in November.
In today’s hearing, in which he was also sentenced to repay more than 11,000 million dollars, the young man assumed the end of his “useful life”, referring to his career as a businessman.
Today also appeared to take on the disdain of his former associates, including the platform’s co-founder Gary Wang and the convict’s ex-partner, Caroline Ellison, who had testified against Bankman.
According to the young man, together they built “something nice” that he himself threw overboard.
Bankman, also known by his initials SBF, He began his journey through the crypto world as a 27-year-old “child prodigy” who earned the trust of investors and large economic media (in which he starred on covers and extensive reports) thanks, in part, to a youthful and disheveled appearance and some ‘nerdy’ interests that generated curiosity in the public.
His intelligence and particular personality were recognized today by the judge in the case, Lewis Kaplan, who assured that SBF “is capable of achieving great achievements” and highlighted his “unusual and sometimes unpleasant” way of interacting with people.
The former businessman also stood out for the million-dollar investments he allocated to US political parties (both Democrats and Republicans).civil organizations, solidarity causes, sports centers and even cryptocurrency platforms that were in trouble.
But the founder of what became the second cryptocurrency platform in the world – valued at one point at $32 billion – turned out to be, in reality, a scammer, who today saw how his former life, marked by luxuries (reflected in an imposing chalet in the Bahamas), took an impressive 360 degree turn.
A premature and prolific career
Born in 1992 into a wealthy family, Bankman graduated in Physics with a specialty in mathematics from the Massachusetts Institute of Technology (MIT) in 2014, the year in which he began working at the Jane Street firm, focused on stock fund arbitrage.
He took his first steps in the cryptocurrency business in 2017, with the Alameda Research foundation, which later became the investment arm of the FTX platformcreated two years later.
The cryptocurrency sector suffered a blow with the 2022 crisis (fueled by the pandemic, inflation, the war in Ukraine and high interest rates), a moment that SBF took advantage of to buy and lend money to companies that suffered significantly from this period.
From savior to scammer
His savior complex disappeared the moment he began his downward spiral, when Changpeng Zhao, CEO of Binance (the world’s largest cryptocurrency exchange), sold his stake in FTX to Bankman and expressed concern about the financial stability of the platform.
Like a domino board, Zhao’s decision had repercussions on other investorswho withdrew from FTX in a chain reaction that led the platform to suffer an $8 billion deficit and declare bankruptcy some time later.
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2024-04-10 20:00:44