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How SBF Lost $30 Billion in 1 Week - The Fall of Sam Bankman-Fried and 130 Companies Bankrupting at Once
Manage episode 346906491 series 2095096
How SBF Lost $30 Billion in 1 Week - The Fall of Sam Bankman Fried and 130 Companies Bankrupting at Once - Learn about how SBF (Sam Bankman-Fried) helped stand up the entire Crypto market and then collapse it in 1 full sweep - bankrupting 130+ companies at the same time.
In late 2019, Sam Bankman-Fried (SBF) was one of the most well-known and respected figures in the cryptocurrency industry. He was the CEO of FTX, a successful cryptocurrency derivatives exchange, and also ran Alameda Research, one of the largest and most successful crypto trading firms.
However, in 2022, SBF files for bankruptcy, and FTX is forced to shut down. So, what happened?
It all started with a dispute between FTX and another cryptocurrency exchange, Binance. FTX had been listing a number of “BinanceCoin Futures” contracts, which allowed users to bet on the price of BinanceCoin (BNB), the native token of the Binance exchange.
Binance objected to these contracts, and threatened to delist FTX from its platform if they did not stop offering them. FTX complied, but the damage was done. Binance had already begun to research FTX, and discovered that the exchange was using a number of questionable practices, including wash trading, spoofing, and market manipulation.
Binance delisted FTX, and the exchange’s reputation was irreparably damaged. FTX lost a lot of users, and their trading volume dropped dramatically. SBF was forced to sell Alameda Research to cover FTX’s losses, and in 2022, FTX was shut down and SBF declared bankruptcy.
It’s a cautionary tale of how quickly things can change in the cryptocurrency industry, and how even the most successful companies can fall victim to bad publicity and regulation.
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