In 2022, the fall of FTX and Sam Bankman-fried began with a series of events. Leading to implications for the cryptocurrency industry. In September, Bankman-fried, the CEO and founder of FTX, was accused of insider trading.
This sparked an investigation by the United States Securities and Exchange Commission (SEC). In June, FTX settled with the SEC and paid a fine in excess of $200 million.
As a result of the settlement, Bankman-fried stepped down from his role as CEO and was replaced by Gary Gensler. However, this did not stop the downward spiral for FTX. Months later in August its parent company was forced to file for bankruptcy. This was due to financial issues caused by the SEC investigation and settlement.
FTX fell last year
The fall of FTX continued into October. However, this was when it announced it would be delisted from several major exchanges after failing to meet certain criteria. This led to a sharp decline in its market capitalization as investors
The charges against FTX crypto exchange co-founder Sam Bankman-Fried, a thirty-something with a disheveled appearance, have been steadily mounting. He is now accused of a variety of violations, including fraud, conspiracy, and breaking campaign finance laws.
In what may seem like an ironic foreshadowing of his current downfall, the apex of his success. FTX’s Super Bowl ad last year featured comedian Larry David poking fun at Bankman-Fried’s eccentric character.
The Bahamas-based exchange, valued at multi-billion dollars, had attained a position of prominence in the global market. However, it had established itself as a reliable and straightforward portal for those wishing to enter the world of cryptocurrencies.
In the advertisement, David is portrayed as an individual who has remained hesitant with every technological advancement that has occurred across history.
The message that is ultimately conveyed is one urging viewers not to be like Larry and to not miss out on this revolutionary opportunity to invest in cryptocurrencies and NFTs (Non-Fungible Tokens).
Additionally, any other forthcomings that could prove to be potentially lucrative. Nine months after David’s schmuck character had been introduced to the public, it became apparent that he had gotten the last laugh.
Despite the fact that David himself was now facing a lawsuit due to the advertisement. In November, a series of events orchestrated by Binance FTX s biggest competitor resulted in an unexpected and dramatic downfall of FTX.
However, this consequently led to Bankman-Fried’s dethronement from his influential positions in both the crypto world and in the philanthropic niche known as effective altruism.
