Behind the Bastards CZM Rewind: How Sam Bankman-Fried Conned the Crypto World & The Sam Bankman-Fried Update
11 snips
Nov 25, 2025 AI Snips
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Unregulated Exchange Became A Crypto Bank
- Sam Bankman‑Fried built FTX/Alameda as an unregulated crypto bank that mixed trading and custody functions.
- That structural blend made it easy to move customer funds into risky bets and hide losses on paper.
Charity Rhetoric Masked A Wealth-First Strategy
- Sam framed his greed as effective altruism: get very rich to give away money later.
- That justification let him recruit supporters and cloak profit-seeking as moral urgency.
Grand Guarantees Signal Fraud Risk
- FTX marketed impossible guarantees like '15% annualized loans' to lure investors.
- Promises of 'no downside' signaled fraud risk because no legitimate investment can guarantee that.