Sam Bankman-Fried (SBF) was supposed to be the "good" billionaire.
- Effective Altruism (giving all his money away).
- Lobbying for regulation.
- Saving failing crypto companies.
Turns out, it's easy to be generous with other people's money.
The Spreadsheets
When the bankruptcy lawyers took over, they found:
- No accounting department.
- Expenses approved by emoji on Slack.
- A "backdoor" that let Alameda Research (his hedge fund) borrow unlimited money from FTX customers.
It wasn't a sophisticated heist. It was just a teenager's messy bedroom disguised as a financial institution.
The League of Legends Detail
SBF famously played League of Legends during meetings with Sequoia Capital. Investors thought this was "genius multitasking."
(Narrator: He was hard-stuck in Bronze rank. He wasn't even good at the game.)
Conclusion
If your banker plays video games while handling your life savings, maybe withdraw your money. If your banker sleeps on a beanbag in the Bahamas, definitely withdraw your money.
Complexity is often a mask for fraud. Keep it simple. Keep it cold (storage).
Crypto
FTX
Fraud
SBF
