The Tragic Tale of Sam Bankman-Fried and the Cursed Exchange of FTX

Once upon a time, in a faraway land called California, there lived a young man named Sam Bankman-Fried. Sam was a brilliant and ambitious individual determined to make a name for himself in the world.

In the kingdom of crypto, Sam discovered his true calling. He quickly became known for his incredible intelligence and unwavering dedication. Spending long hours studying the intricacies of the crypto world, he soon emerged as one of the most respected and successful traders in all the land. However, Sam did not rest on his laurels; he founded a crypto exchange known as FTX.

FTX rapidly became one of the most successful and respected exchanges in the kingdom. Its user-friendly interface and advanced features made it a favorite among traders of all levels, while its founder, Sam, was celebrated as a true hero of the crypto realm. Many flocked to his platform, eager to benefit from his expertise.

But little did they know, Sam harbored a secret plan. He devised a cunning scheme to defraud his investors and began putting it into action. First, Sam created a series of fictitious investment opportunities, claiming they would yield enormous returns. He convinced his investors to pour their money into these “opportunities,” promising them substantial profits in no time.

In reality, Sam had no intention of fulfilling his promises. Instead, he used the funds entrusted to him by investors to line the pockets of Democratic Party candidates, becoming the second-largest individual donor to Joe Biden in the 2020 presidential election with a personal donation of $5.2 million. He further contributed $40 million, primarily to Democratic candidates, during the 2022 U.S. midterm elections.

Then, a fateful decision by another exchange, Binance, sealed FTX’s fate. Binance decided to sell a large amount of FTT, a coin closely tied to FTX. This sale caused the price of FTT to plummet, leading many traders holding the coin on FTX to incur significant losses. The news of the sale and the resulting panic prompted a mass withdrawal of assets from the exchange, further diminishing its market share. Ultimately, FTX was unable to recover from the blow dealt by Binance and was forced to close its doors for good.

Thus, the great exchange of FTX became a cautionary tale of the dangers and challenges within the crypto world. Meanwhile, its founder, Sam Bankman-Fried, found himself free to relax in the Bahamas and embark on a press tour. Justice finally caught up with him, and he was sentenced to 25 years in prison for his actions.

The end.