The Collapse of FTX ‘King of Crypto’ Sam Bankman Fried

Once Sam Bankman about to enter into random college students and young adults turning a couple of hundred thousand even million $1000 billion dollars congratulations that’s really quite awesome. But, there’s someone who’s making a lot more than all of you guys were picking on for less risk and that’s of course the crypto brokerages. What they say when there’s a gold rush.

You don’t wanna be digging for gold you want to be 19 platform FTX and now he’s worth 26.5. did I mention that he’s on 29 years old new crypto Nakamoto is of course richer. But if we just looking on figures Forbes is probably right so here’s the story of Sam Bankman in hockey figure Taking a look back and was born on March 6, 9090 parents were law professors at Stanford.

So, I think it’s safe to assume that Sam had a while of childhood a lot of free time reading Harry Potter and watching the San Francisco Giants after school get into the small private school in the Bay Area happy fourth grade spot at MIT. We measured in physics physics is one of the hardest majors to complete if not the hardest mighty.

So, you would think the college consumed all of the time. But, I developed a strong interest in ethics and morality isles right away. I was especially interested in effective altruism and utilitarianism. Instead of donating money to send believe. They want to do For example, but I do need it in order to make it an impact of it.

I need a big money wasn’t going to get there by being a professor so job at a quarter to the perm cottage inn suite capital billionaires. Sam never really cared about crypto and he wasn’t in early adopter by any means. In fact, I didn’t catch attention in 17,000 fundamentals of bitcoin or white good for interested in big is a big head or what do you know one day.

Tim noticed that you could buy bitcoin in the US a large amount that’s how it all started a joke. Sam says “I got involved in crypto without any idea. What crypto was it just seem like there was a lot of good trait to do something else was the lack of regulation opening up a traditional pretty firm requires a lot of licenses and helping lawyers which is not cheap but with crypto.

It basically anyone can open the greeting from especially if it is based in the US. Sam wasn’t the only one trying to leverage his opportunity though profit is actually nostalgia from afraid in code arbitrage anyway October 17. Initially, it was just him and a couple of recent college graduates of the start up it didn’t take long for them to do it at least not publicly associated with it 2017 forerunner if you months 25.

But, this was the peak of the big white bull run hill from there. Sam wasn’t worried about the high die opportunity. He crash when it came to trading all of the purchases possible for individual investors. While, they were phenomenal at this volume from traders.

So, Sam just had a greatest that would be Taylor twitch could your peters over the next several months and became more important to go to community by teddy bear scooter conferences and meeting with beer world move to Hong Kong Santa poppers from Alameda and worked a couple of a total of $8 million which he would use the beginning of 2019 with $8 million in Olympic experience.

Sam was able to develop the perfect platform for traders thousand 19. But, the same disappointment alameda was lost in the peak of the bull run. When we need to but 1980% 94% there was no I’ve left forever orders left and these guys had no interest in trading that we were locations to try to convince the outside of the box bitcoin no longer at home go to wave up and down.

But, very much had with military. So, it’s basically just left options futures and margin no I did not understand. How dangerous these are is super dangerous and you could argue that crypto. So, you’re basically trading group of Griffiths to make things even worse. There’s very little regulation you take a sky high on stocks beauty be hard-pressed meanwhile up to 20 X leverage bitcoin is bitcoin rate is just 5% you double your money.

But, the thing that people forget is that bitcoin just dropped 5% you lose everything I don’t think I need explain why did I delete it who knew the risk with leverage but naturally he ended up attracting a large number of opportunity find me a 2020 volume of $1 billion Gone to the Moon Uber at the Xbox a total of 2,000,011 dollars to put that in perspective it’s at 68 million users or 34 times FTX roebucks $74 per person per day meanwhile dollars per person per day.

But with 11.5 billion we’re talking about somewhere between a half 1 million if we asked me in the middle income $4 million look at about 1.5 billion little overhead margin is about 50% apple participate in the Americas stock market oK which now counts for a large portion of Sam’s wealth you would think that Sam is a massive believer in crypto.

But, this is actually not the case now it’s not going to go to zero but he’s also not calling for it to go to the moon and condition and opportunity and that’s only reason he still there at this point he’s just hoping that cookie survive long enough for him to give away all is well is giving away all this money if that’s through crypto and FTX great.

But, if emerges switching to dad instead right now.5 years $25 million shampoo for that Raven holding up the shower you can do it over for about 22.5. I don’t want to take away from his generosity but I do think it should be noted for having to surely been as altruistic as you wish I promised last year Sam donated $5.2 million only been out by Michael Bloomberg.

I think we can I read it so hopefully but only time will tell Big man went from 0 to 26.5 years or through Internet all this money and if so what do you think donations will actually be Also if you wish you could be 26.5 

Sam parents involved or not ?

Cryptocurrency exchange remains in a jail cell extradition United States and the possibility of spending decades behind bars but what about his parents I’m surprised so few were asking whether either of them could be illegal Jeopardy fruits father Joseph banks and works in as a tax law professor at Stanford though is announced.

He won’t be teaching at the University next year the father Bankman work for FTX for almost a year deeply involved in the business and it’s early days help the company recruited first lawyers laughter enjoying the FTX staff meetings in Capitol Hill he consulted FTX employees on tax matters and also a large focus on FTX his charitable operations

Sam’s mom Barbara free retired from teaching at Stanford was it have a political advocacy network called mind the gap which helped start to support democratic campaigns and causes her son was among the donors for the Netwerk meanwhile back in freedom his parents together bought real estate in the Bahamas worth $121 million no interview the New York Times and

Sam’s parents “weren’t involved in any of the relevant parts of the business such as the balances are risk management both parents remain in the Bahamas and it has been reported they’ve told her friends their son is legal bills will likely wipe them out but putting aside their sons legal bills what about that particular dad could he be charged with any crimes to former assistant US attorney for the southern district of New York and Wall Street Journal reporter Justin bear whose most recent article on this is titled Sam Bankman Fried’s parents were there for FTX is rise and now it’s full thank you both for coming on the show appreciate it

I just let me start with you is there any talk of an investigation of the parents particular the dad well I think we have seen and then make a cameo appearance not in the diamonds this week but in a related lawsuit by the CFTC sold in this so one point the reread the regulator noting a number of different parties and clean the parents and what they may have been able to have FTX Pfizer berries Christmas of which you measure real estate that’s on the list private jet use a few other things out as unclear which party was received one but we do know that they did have this cameo this weekend.

I guess the question Justin is the practical matter how involved were the parents with this business I think we we we know somethings about both of them we know it is mother Barbara freight was not really involved in sales in the last month or so she’s she’s been in the Bahamas devising her son way before that was not a silly not as active as husband at your big bang update employer that he asked for nearly a year

He was in law involved a number of different person is characterized largely in but I also took an interest was involved in in the lobby in some lobby he did Washington join to sign in meetings on the hill you’ll be on that it’s it’s it’s it’s unclear we don’t know lol where can you where can you shut off of the whole case which is his use of a customer funds at FTX and how it landed I have that money landed in this related

But, there are other charges riding in the campaign finance charges charges as well here Nick Ackerman you know we’ve seen other big businesses that have failed based on Friday and it tends to be the case that numerous executives end up getting charge in this case is it doesn’t just typically end up with the CEO charged and no one else no you’re absolutely correct and in fact most of the counselors indictment alleged conspiracy conspiracy is basically in agreement to commit a crime.

We have to Sam Bankman Fried had to agree with somebody else and so the question is who are those somebody else’s I mean indictment is very clear that they’re charging other people knowing an unknown to the grand jury read to me it’s pretty clear that what’s going on here is the indictment Together quickly the government could immediately arrest an extra day on Sam Bankman Fried and then go out to the other people and put together all the evidence this is not going to be the last word in the charge is in this case thank you for watching go to knockmefornews.com 

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