The Daily The Man Who Was Supposed to Save Crypto
9 snips
Nov 18, 2022 
David Yaffe-Bellany, a New York Times reporter specializing in cryptocurrencies, dives deep into the rise and fall of FTX and its founder, Sam Bankman-Fried. He discusses how Bankman-Fried became the charismatic face of crypto, garnering immense trust before the catastrophic collapse. The episode reveals the warning signs ignored by Bankman-Fried and the emotional fallout experienced by investors. Yaffe-Bellany also explores the ethical implications of FTX's demise and the evolving landscape of cryptocurrency regulation.
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SBF's Crypto Start
- Sam Bankman-Fried, a physics graduate, wanted to make a lot of money quickly.
- He entered the crypto world during the 2017 boom and started a trading firm, Alameda Research.
The Bitcoin Arbitrage
- SBF exploited a price difference between Bitcoin in the US and Japan.
- This arbitrage opportunity, despite logistical challenges, became his springboard to success.
FTX and Alameda: A Conflict of Interest
- SBF created FTX, a crypto exchange offering simpler trading and riskier bets (derivatives).
- FTX's lending model, coupled with Alameda Research's trading, posed a conflict of interest.