If there’s a single image that defines the crypto frenzy of 2021 and 2022, it’s that of the actor Matt Damon, calm and muscled, delivering the immortal proverb “Fortune favors the brave.” It was part of an ad for Crypto.com, yet it somehow captured the absurdity of what the crypto industry promised at the time: not just a digital asset, but a ludicrously magnified vision of the future.
Sam Bankman-Fried was the opposite of all that.
There was a time, not so long ago, when you actually had to show up at a concert to get ripped off. Scalping, the process of buying tickets for cheap and reselling them to desperate fans, usually on the day of a show, used to be limited to crowded stadium entranceways and sidewalk waiting areas.These days it all happens on Ticketmaster.
In the hours before Sam Bankman-Fried surrendered to police at his home on the Bahamian island of New Providence, he was still engaged in something like a last-ditch press tour: a final, desperate attempt to make amends after his $32 billion crypto empire unraveled last month. Asked during a Monday-afternoon roundtable on Twitter Spaces whether he thought the prospect of returning to the U.S. might result in his arrest, Bankman-Fried responded with a resounding no.
After losing more than $1 billion of his customers’ money, the disgraced crypto titan Sam Bankman-Fried had just one thing to say.“1) What.”That inscrutable message, posted on Twitter last weekend, followed a cataclysmic week for the 30-year-old. FTX, the cryptocurrency-trading site he’d founded and turned into a global behemoth, went insolvent. Bankman-Fried’s personal wealth plummeted from $15 billion to $0 in just one day, and the company filed for bankruptcy.
When I spoke with Sam Bankman-Fried three weeks ago, he was crypto’s golden boy. Worth about $15 billion, this quirky 30-year-old led one of the industry’s largest empires. Over the past few years, he’s palled around with Bill Clinton, graced the cover of Fortune magazine, and turned himself into a three-letter initialism: SBF. Toward the end of our rambling, 90-minute interview, Bankman-Fried dropped a casual hint at the state of his finances.
Sam Bankman-Fried, a 30-year-old co-founder of the cryptocurrency exchange FTX, is a $15 billion enigma. As one of the richest and most powerful men in crypto, “SBF” is already a political megadonor in the vein of Peter Thiel and George Soros: He spent millions in support of Joe Biden’s presidential campaign, and was one of the biggest Democratic donors in the country in the lead-up to this year’s midterm elections.
Last Monday marked one of the biggest TV events of June—Game 5 of the NBA finals. So naturally the crypto exchange Coinbase used the opportunity to air an ad poking fun at crypto’s more enthusiastic doomsayers. A series of tweets declaring “Crypto is dead”—some new, others nearly a decade old—fades in and out over a rendition of Chopin’s funeral march. Then a new slogan rises up in a harsh blue font: “Long live crypto.