“How did this dude steal billions of dollars and is now speaking at a summit as a free man? Make it make sense.” — the internet.
This is the question that millions of people are asking after weeks have now passed since Sam Bankman-Fried’s FTX scandal unfolded. Bankman-Fried is accused of treating FTX as a ‘personal fiefdom’ as he squandered billions in cash and digital assets of his former clients.
According to a Bloomberg News report, customer funds were seemingly used to buy real-estate while Bankman-Fried himself took a $1 billion loan out from Alameda Research, a trading firm founded by Sam Bankman-Fried. The firm was trading billions of dollars from FTX accounts and leveraging the exchange’s native token as collateral, according to reports.
Essentially, Bankman-Fried was taking assets from his customers, without their permission, and squandering them on risky trades. According to U.S. securities law, mixing customer funds with counterparties and trading them without explicit consent — is against the law.
Galaxy Digital CEO Mike Novogratz is one of the folks throwing his hands up and demanding to know why Bankman-Fried has not been arrested or even charged.