This article has been translated from English to Gen Z Slang.
Sam Bankman-Fried, aka SBF, is that big-brain American boss who hit the headlines for birthing the crypto exchange FTX and pulling the strings at Alameda Research, his crypto hedge fund. 🚀
Fast forward to November 2022, and whoa, SBF’s stack of $15 billy and FTX's worth of $35 billy did a major nosedive because FTX ran dry on cash flow. 💸 Allegedly, my guy SBF slid $10 billion from FTX's piggy bank over to Alameda Research. His hedge fund got infamous for going big with bets on other crypto peeps, using loans backed by FTX’s own coin, FTT. 💶
When people found out that most of Alameda’s fortune was all about FTT and not-so-juicy non-crypto stuff like that cold, hard cash, 😬 everyone hit the panic button. FTX clientele and investors were like, “Nah fam!” and started pulling out and dumping their FTT pronto. 🚨
FTX dealt with a $6 billion run from users in the first three days of media buzz on Alameda’s stash. Then they had to hit pause on withdrawals 'cause, surprise surprise, they ran short on money to fulfill everyone’s bank run. 🏃♂️
Bankman-Fried is the prodigy spawn of Stanford University law pros. SBF snatched his diplomas in physics and math from MIT back in 2014, and hopped onboard Jane Street Capital, a big-league trading hub pushing $17 trillion in securities worldwide. 🔍
SBF bailed from Jane Street in 2017 and set sails on Alameda Research. His baby, the FTX exchange, officially made landfall in 2019. 🎉
Through all his mad wins with Alameda and crafting one of the globe’s mega crypto exchanges, SBF was dubbed the golden child of the crypto scene – the knight in shining armor against hacker baddies and wonky snake oil merchants. ⚔️
He tossed around that fat stack, donating close to $50 million to squad goals politicians like President Joe Biden during the 2020 elections. 🗳️
He also had Blockfi’s back with $250 million rolling credit when they hit money woes in June 2022, 'cause the crypto market’s digital assets kinda took a dive. 📉
Bankman-Fried and Alameda would also pledge $500 million to float Voyager Digital, which is basically a crypto brokerage move. 🤝
Come October 2021, Forbes shouted out Bankman-Fried as the wealthiest young buck under 30, with a whooping $20 billion score. 🤑
By November 2022, SBF had pulled the plug on Alameda Research, declared Chapter 11 for FTX, stepped down from the CEO throne, and is looking at potential probing from the feds – DOJ, SEC, CFTC, and the Bahama Regulators. FTX calls the Bahamas home, after all. 😬🔍