The rise and fall of FTX and SBF: The ‘crypto king’ is facing 110 years in prison
I’m sure you’ve seen the headline — 110 years. That’s how much time fallen crypto king Sam Bankman-Fried could spend in prison. After a month-long trial, the FTX founder was just found guilty of seven counts, all revolving around $8 billion the crypto exchange stole from users.
Flashback to 2021, and SBF’s company was trading $20 billion in crypto daily, naming stadiums, buying mansions in the Bahamas and taking out Super Bowl commercials. What went wrong? Short answer: Everything.
Now, he’s in the same conversation as Bernie Madoff. This is so fascinating that I wanted to take you down the winding road of the biggest crypto mess we’ve seen yet.
“Kim, I don’t know anything about crypto”
That’s OK. The big question the jury had to decide on was simple — no knowledge of blockchain, wallets or keys required. Did SBF, now 31, intentionally trick customers and use all the money they invested as his own? The answer (which you know will be challenged in an appeal) is yes.
$26.5 billion
That’s how much SBF was worth when his crypto trading platform peaked. I bet even before the trial, you saw him — a guy with a big mop of curly hair who wore sneakers and a sloppy suit to testify before Congress.
The MIT graduate co-founded FTX (short for Futures Exchange) in 2019. By July 2021, it had an $18 billion valuation and investments from Softbank, Sequoia Capital and other big hitters. It only grew from there.
Remember the Super Bowl commercials with Larry David? That was FTX. (His parents are apparently huge fans.) The company was shelling out money in the Bahamas, too, where it set up its official headquarters.
SBF bought a $35 million penthouse he shared with nine people. All told, FTX spent $256.3 million to buy and maintain 35 different properties.
Spoiler: It didn’t end well
While FTX was raking in money, it was cozying up to trading firm Alameda Research. SBF had an on-again, off-again thing with the CEO, Caroline Ellison. Seriously, this thing is like a soap opera.
Crypto tip: What you should know about wallets
Cryptocurrency is a viral sensation, with social media influencers hyping its merits and usefulness. The digital currency has taken on the air of a get-rich-quick scheme, promising enormous profits with minimal investment.
Be careful mixing crypto with real estate - or this could happen
When it comes to real estate, it’s a seller’s market right now. Everyone wants homes, and thanks to the demand, prices are higher than the Empire State Building. At least, that’s how it can feel to folks who can’t afford to buy a house.
That random cryptocurrency you received? Here's how to tell if it's a scam
Cryptocurrency is a hot topic on social media. It seems like everybody is making a killing with digital currency, and that has people feeling left out. This makes crypto a prime target for scammers to use as bait to lure in victims.
10 cryptocurrency terms people use every day that you need to know, too
Despite Bitcoin launching way back in 2009, it’s only until recently that you can’t turn on the news or browse the web without coming across some mention of cryptocurrency.
I got so many questions from my readers and national radio show listeners that I wrote an eBook about crypto to help. I demystify digital currency, mining, and how to get started trading. Tap or click here to get your copy on Amazon.
We may receive a commission when you buy through our links, but our reporting and recommendations are always independent and objective.
Cryptocurrency and donations: How digital currency is changing how we give and receive money
Right now, the world of cryptocurrency is like the Wild West. Just think about all of the modern-day prospectors searching for their fortunes. If you’re looking for gold in the digital world, I’ve got a ton of resources to help you!