Hello The_Krakenite, Sam Bankman Fried is no different from the sellers who sell trading courses and trading book, he is just a failed trader, who chose to scam customers and investors so he can live a rich life. He took customers money from FTX accounts and traded with them, and he lost the money. And fooled investors and banks because he "looks" "smart" and talks "smart". PIMPS, LIARS, and SCAMMERS ALWAYS LOOK AND TALK SMART!
Here is another good and I think more nuanced discussion with Michael Lewis about his book and SBF: https://www.youtube.com/live/pJ_0wFR88cg?feature=shared
Read Lewis book. Seen practically all of the YouTube interviews. I didn't have any crypto so my views aren't tainted by the money lust. There was a lot of criticism for Lewis since the book went easy on SBF. But I think he got the narrative right. The book was entertaining and informative. SBF is basically a modern day Rainman (for those who are too young, Dustin Hoffman/Tom Cruise 80s movie). Raymond Babbitt (Hoffman) suffered from Savant Syndrome which gave him the incredible ability to count cards which was invaluable in winning a ton of money at the BJ tables in Vegas but also left him incapable of living a normal life. Mental disorder disabled his everyday interactions. SBF did not suffer from any medically diagnosed ailment but as Lewis mentioned in his book, had basically zero friends when growing up since he was so different and emotionally withdrawn. He had an innate ability to solve mathematical probability puzzles which proved invaluable in finding lucrative trading opportunities ie Trump trade and Kimchi crypto trade. Rated highly by the secretive Wall Street firm Jane Street. He earned $300k his first year, $500k 2nd year, then $1 mil his third year. SBF asked his Jane Street mentors where they saw him in 5-10 years. They told him he would be making anywhere from $15-$75 mil/year. He decided it wasn't enough and left to start his own crypto firm. Effective altruism had become his driving force. In order to do maximum good for the world, he had to earn as much as possible so that he could give the money to worthy causes. In a famous scene in the movie, Rainman, Hoffman tries to cook a meal by himself but sets off the smoke alarm, he starts panicking and screaming, not knowing what to do. Cruise (his brother in the movie) rushes to him in order to claim him down. Cruise realizes at that point, his brother needed medical supervision for the rest of his life. Similarly, SBF, left without "guardrails", would prove to be destructive, as he did not understand that continually betting BIG for some supposedly positive EV event could lead to catastrophe. Most "normal" people would have mental alerts to warn them that they were on the edge of the cliff and to back off but not SBF. He stayed on the edge.
On the other hand... His fellow FTX conspirators, like Caroline Ellison, are testifying AGAINST SBF... with very damning evidence and testimony. Sam may get all the alone time he wants in the near future in an upstate Big House. Karma is a Bitch.
Ponzi? Doesn't seem to fit this particular case. FTX had a $500 million investment in Anthropic, when it was worth $4.6 billion. Google may invest, bringing valuation up to $30 billion so FTX stake could be 6x more at $3 billion. Anthropic worth $30 billion Prosecutors don't want Anthropic investment to be allowed Also according to the book, multiple FTX insiders were shocked that there was such a shortfall, as they knew that the FTX exchange was very profitable due to the cryptos' large trading spreads. Alameda blunder trading activity and SBF's reckless spending were main culprits for the shortfall. There was a viable business among all the recklessness. It would be quite ironic if there is a SURPLUS of funds after all is said and done.
Spending OPM jetting to and fro The Bahamas, Silicon Valley, NY etc as well as political donations to your favorite politicians and gambling/pissing more money away thru Alameda Investments all the while using the cover of a wardrobe of "Phil Specter" hairdoo, tee shirts, shorts and sandals I'm just a regular geekie guy. Fellow Ponzi Bernie Madoff will roll over in his grave if SBF gets off, or gets much of a light sentence.
I am very relieved in a way that it all blew up. Just before the epic collapse, I watched that infamous clip of Ellison laughing how little and pointless math is for calculating risk etc... Did we really not see it coming?