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FTX founder Sam Bankman-Fried turned out to be a gambling addict


POKERMAN
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Crypto Exchanges, these casinos are the largest, most profitable and most dangerous for players.

Any casino provided with good traffic can fail only in one case - if its owner himself gambles.

The FTX exchange was in fact one of the largest casinos in the world, with over a million players and billions in turnover.

Billionaire Sam Bankman-Fried's crypto empire has officially been split into two main parts: FTX (his exchange) and Alameda Research (his trading firm), both giants in their respective industries.

Roughly speaking. FTX is a casino. Alameda Research is a player. Thus, Sam Bankman-Fried, at the same time owned a casino, and played at other sites (casinos).

You can do this, but only if you follow a strict rule. The assets must be segregated. You can not take money from the cashier of your own casino (which includes player deposits) to play in other casinos. Sam Bankman-Fried broke this rule.

Until at least 2022, Sam Bankman-Fried played "+" through his company for the game Alameda Research. Including making huge bets on a large number of different altcoins.

In 2022, the cryptocurrency market, under the influence of various reasons, dipped heavily. Many altcoins especially got it. Sam Bankman-Fried went to "-". Apparently at that moment he had an idea to recoup.

His "gaming company" Alameda Research, got into the cashier of his "casino" FTX to win back on these funds.

This was technically done through the issuance of FTT, FTX native tokens, which eventually made up the bulk of Alameda Research's balance sheet. Again, roughly speaking, the player began to tinker with "shares of his own casino."

How much money Sam Bankman-Fried pulled out of the FTX "casino" cash desk in order to tinker with Alameda Research is still unknown. Now we are talking about about $ 8 billion US dollars.

On 11/02/22, everything that happened became known to the general public, after a journalistic investigation on CoinDesk.

On 11/03/22-11/10/22, players massively withdraw deposits from FTX, investors dump FTX tokens (FTT).

One of the largest investors in FTX, and at the same time the owner of the competitor - the Binance exchange, Changpeng Zhao, quickly understands the situation, and using the principle of "falling and pushing", under the "help sauce", pours a tank of gasoline on a flaring fire. Warming up the scandal with posts on Twitter.

On November 11, 2022, the FTX crypto exchange filed for bankruptcy. Sam Bankman-Fried has lost at least 94% of his fortune and is no longer a billionaire. In the future, with a high degree of probability, he may face criminal prosecution and prison.

p.s. Why did Sam Bankman-Fried play as a casino owner? In financial gambling, as in classic gambling, this is a common story. Think of affs losing their own commissions. This happens in our business.

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