The Chicago Journal

Sam Bankman-Fried Faces Downfall with FTX Collapse

The King of Crypto is no longer ruling his kingdom with an iron fist. 

In only eight days, Sam Bankman-Fried steps down as CEO and files FTX for bankruptcy. Moreover, he may face a federal investigation into his handling of the company’s finances.

In the recently released interviews, he speaks with an unpleasant clicking sound from his office desk in the Bahamas.

The entrepreneur’s mouse makes an impressive amount of noise as he continues to tell his story. “Click, click, click,” it goes, repeating outbursts while Bankman-Fried’s eyes stare at the screen.

He’s not sharing what he is doing on his computer, but by looking at the hints given in tweets, one can get an idea of what he’s up to. 

“I’m (in) famous for playing League of Legends while on phone calls,” he said on Twitter in February 2021. 

Bankman-Fried, the former boss of FTX exchange, explains why he loves games in several tweets to his nearly 1 million followers. Gaming allowed him to focus on one thing at a time and be creative.

“Some people drink too much, some gamble. I play a League,” he stated. 

Investors Concern

Following the news of his FTX cryptocurrency empire collapsing this week, another story about him participating in a team fantasy battle has surfaced online.

The venture capital firm Sequoia Capital claims that they’ve seen Bankman-Fried play League of Legends in a video call with their investment team.

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However, it didn’t seem like a problem at all. The group invested $210 million in Bankman-Fried’s firm FTX after all. 

It looks like Sequoia Capital is not happy with the turn of events. After all, they erased their blog post and said they were writing off their investment in the crypto exchange as a loss. 

The firm doesn’t stand alone in this dilemma of heart-stopping investment loss since Bankman-Fried’s $32 billion empire fell. FTX possessed approximately 1 million registered users who used the exchange to purchase cryptocurrency tokens like Bitcoin and more. 

Some investors are concerned about whether they will get their money back from the exchange’s digital wallets.

FTX Beginning

The story of Bankman-Fried is one filled with adventure, risk-taking and rewards. There are many twists along the way – some that he could have predicted but others that came as surprises even to him. 

The multibillionaire attended an elite research university and studied math and physics. This prestigious school is a distinguished US institution of higher learning called the Massachusetts Institute of Technology (MIT). 

However, the young and intelligent undergraduate states that these lessons contributed to his path toward riches.

Bankman-Fried said in an interview with BBC radio last month that he recounted being dragged into the “effective altruism” movement. Effective Altruism is a group of individuals “trying to figure out what practical things you can do with your life to have as much positive impact as you can on the world,” he added. 

So, he decided to dig into banking to make money and give it back through more excellent initiatives. 

He learned to trade stocks on temporary work at the Jane Street trading company, but after a while, he got bored and explored Bitcoin terrain.

Then everything fell into place.

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