In the book ‘The League of Legends,’ I analyze the intricate case of FTX’s collapse, meticulously orchestrated by its founder, Sam Bankman-Fried (SBF). SBF succeeded in executing one of the most significant Ponzi schemes in the brief history of cryptocurrency financial markets. My exploration of this case began in 2022, where I immersed myself in gathering information and closely monitoring unfolding developments.
As the narrative unfolds, it becomes evident that Sam Bankman-Fried, following the contours of a classic Ponzi scheme, reached a critical juncture where he could no longer fulfill the repayment of billions of dollars in loans, primarily due to his mismanagement at FTX and Alameda Research.
My approach to this story transcends the boundaries of conventional finance and cryptocurrency expertise; I have embraced an investigative and sociological perspective to unveil aspects that may have eluded prior scrutiny.
The structure of this narrative takes on a unique form, resembling a series of episodes, each dedicated to different phases and key figures involved in this saga. This episodic segmentation aims to provide readers with an immersive and rhythmic experience, reminiscent of a television series, thereby alleviating the potential tedium associated with technical details. Consequently, the narrative unfolds by placing the spotlight on the founder of FTX, known as Sam Bankman-Fried or SBF. Subsequently, I delve into the surrounding milieu and the pivotal individuals constituting what we might term his inner circle. The exploration continues with a detailed description of the Ponzi scheme meticulously crafted by FTX and Alameda Research, providing a chronological account of the days preceding the collapse of FTX. In the concluding chapter, I scrutinize the historical ties that FTX maintained with Deltec Bank, based in the Bahamas, a key custodian of Tether reserves.
What has particularly caught my attention is the remarkably deceptive manner in which Sam Bankman-Fried, along with a seemingly inexperienced group of individuals, managed to build a financial empire worth billions of dollars practically from…