This is the story of Sam Bankman-Fried (SBF) known as the “cryptocurrency genius”, “the king of crypto” either “the biggest crypto fraudster”, who was arrested in the Bahamas on December 13, 2022 and charged in the United States with various financial crimes, including wire fraud. Today his trial is about to conclude.
The crux of the matter is that SBF told everyone in his company including employees, customers and investors that he needed USD 8 billion to cover the crisis of his company called FTX, a cryptocurrency exchange platform. What he did was make withdrawals from his company and it went bankrupt.
What happened to Sam? Bankman-Fried?
He started selling ETFs (Exchange-Trade-Funds) or exchange-traded funds. In 2017 she founded Alameda Researcha cryptocurrency trading company and in 2019 created FTXa platform bitcoin. SBF became an investor. He proclaimed his altruism. In November 2022, FTX collapsed and he was no longer a billionaire. It is estimated that his assets fell 94% in a matter of hours.
Who is the owner of the FTX company?
Sam Bankman-Fried (SBF) is 31 years old. He was born in Stanford, California, USA. With his cryptocurrency platform, FTX, he made a wealth of USD 26,000 million that he practically lost in a crisis of his company. SBF comes from an upper middle class Jewish family. His parents are professors at Stanford University. He graduated from the Massachusetts Institute of Technology with a degree in physics and a minor in mathematics.
What did the owner of FTX do?
This entrepreneur is behind a major cryptocurrency fraud. He is responsible for the disappearance of USD 8 billion from his company called FTX, an electronic currency platform. Now they have called him “the crypto scammer.” He assures that he never thought that transferring funds from FTX to his other company, Alameda Research, would be considered a cybercrime. The money transferred included capital from FTX clients.
Where is Sam Bankman-Fried now?
He was arrested in the Bahamas in December last year and imprisoned in the United States. He was released from jail after posting bail of USD 250 million. However, in August 2023 a judge took him prisoner again for trying to defame his ex-girlfriend. Caroline Ellison, accusing her of irregularities. She worked at Alameda Research and is now a witness in the trial.
What is FTX?
The FTX is the token native to FTX, the cryptocurrency trading platform. He token is a value unit that Sam Bankman-Fried (SBF) and Gary Wang created to operate their business model and give users their own bitcoin. The FTX Token or FTT was founded in 2019.
How much money did FTX move?
At its peak FTX had 1.2 million users and daily transactions of approximately 1.75 billion euros. FTX was the third largest cryptocurrency exchange in the world. The other two leaders were Binance and Coinbase.
In bankruptcy the empire of Sam Bankman-Fried
Sam Bankman-Fried’s company (SBF) was a trading of electronic currencies through two types of contracts: futures or cash. In the first, both parties agreed to exchange an asset on an established future date. On the other hand, paying in cash means a significant capital outlay.
This is how SBF is involved in the biggest scandal that shook the world of cryptocurrencies with which you can buy video games and entertainment, software services, electronic products, etc. And at the moment when the FTX or FTT (the token native of the FTX platform), fell terribly, SBF lost his fortune in one day.
Today the crypto empire of Sam Bankman-Fried and many cryptocurrency companies were also affected, as were investors who bet on FTX since its inception. Now for all this collapse, SBF could be sentenced to 115 years in prison.
This entrepreneur did not want to invest in company shares, but preferred to make the best investments in cryptocurrencies with the help of algorithms and strategies. Many considered him a mathematical genius. He began to enrich himself by charging a commission to users who used FTX, a currency exchange platform. bitcoins. Today he is imprisoned awaiting the final decision of a historic trial.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.