Sam Bankman-Fried faces many years in jail

Only a month has elapsed since Sam Bankman-Fried, the founder of ftx, a crypto exchange, placed the firm, along with Alameda Research, its sister hedge fund, into bankruptcy proceedings. The exchange was unable to meet customer withdrawal requests; the problem, it became clear, was that some $8bn of customer assets had ended up in the custody of Alameda, and were missing. In the intervening 32 days Mr Bankman-Fried has given countless interviews in which he has apologised, appeared confused by the unravelling of his empire, pleaded ignorance and generally tried to shift the blame.

He told Good Morning America that he “failed to have proper oversight”. In an interview with New York magazine he said: “I fucked up. I did. In multiple ways, frankly. In terms of letting a margin position get too big”. He explained to the New York Times that there were mysterious discrepancies between what “the audited financials were, the true financials, what the exchange understood…”, and…

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This article was written by and originally published on www.economist.com