SBF? FTX? WTF?

Thankfully our reporters can explain it all in plain English. I was on vacation in sunny Southern California when news about [Sam Bankman-Fried and the collapse of FTX](, his crypto-exchange platform, hit. At the time, I knew absolutely nothing about this wild-haired man or what FTX actually is or does. (To be fair, that largely stems from the way I feel about crypto — like ouija boards or caving or ball pits, I just don’t mess with it.) What helped me understand who this man is, what he did, and how he screwed it all up was my colleague [Whizy Kim’s explainer]( on how Bankman-Fried got so powerful. It turns out that a lot of things he allegedly did were under the cover of altruistic intent. Much of his power came from people buying into his image of a kinder, gentler billionaire who was going to help save the world with his money, mainly by giving it away for “good” causes. Bankman-Fried’s collapse no doubt says a lot about how he and the uber-wealthy maneuver in this world, but it also says a lot about what people want to believe and the values we want to see reflected back to us. And in this instance, Bankman-Fried was [too good to be true](. —[Alex Abad-Santos](, senior correspondent Disclosure: This August, Bankman-Fried’s philanthropic family foundation, Building a Stronger Future, awarded Vox’s Future Perfect a [grant]( for a 2023 reporting project. That project is now on pause.   Sam Bankman-Fried, the disgraced boy king of crypto, explained [Sam Bankman-Fried]( Getty Images A week ago, [Sam Bankman-Fried]( was the boy-wonder face of crypto: A 30-year-old who founded [one of the biggest cryptocurrency exchanges]( in the world, a celebrated philanthropist worth an estimated $16 billion, and a [major Democratic donor]( who quickly found favor in Washington. By Friday, he was at the center of an epic flameout that left his empire and his image as an uncannily sharp, altruistic billionaire in ruins. In the annals of crypto disasters, the tale of Bankman-Fried may go down as one of the most jaw-dropping. He resigned from his crypto exchange, FTX, as it [collapsed]( from a domino effect of [a surge in customers trying to withdraw their funds](, and the company filed for bankruptcy. The Wall Street Journal has reported that Bankman-Fried may have illegally taken about [$10 billion in FTX customers’ funds for his trading firm](, Alameda Research, whose future is also in peril. And Bankman-Fried is now [worth close to nothing](. The downfall of FTX isn’t a typical story of crypto’s volatility or investor risk-taking; it didn’t crumble due to bad luck, but what now appears to be unsustainable layers of deception. On the surface, FTX appeared to be thriving — in the past year, it made several high-profile acquisitions and bailed out other failing crypto companies. In reality, it was [drowning in debt](. At least [$1 billion in customer funds]( is reportedly missing. The stunning contrast between image and reality has resulted in Bankman-Fried facing a reputational fall from grace swifter than any in recent memory. According to [reporting from several]( [news outlets](, the DOJ and SEC are[investigating FTX](, and his friends and admirers in [crypto, philanthropic, and political circles]( have quickly begun distancing themselves from the man widely dubbed the king of crypto. [Read the full story »](  [Learn more about RevenueStripe...](   Airport vendors have you right where they want you Trapped at the gate, drinking a $20 beer. [Read the full story »](   Support our journalism We aim to explain what we buy, why we buy it, and why it matters. Support our mission by making a gift today. [Yes, I'll make a gift](   All of the 2022 National Book Award finalists, read and reviewed A look at this year’s best in fiction, nonfiction, poetry, translated literature, and young people’s literature. [Read the full story »](   More good stuff to read today - [NASA’s rules for astronaut posting: No TikTok, don’t embarrass us]( - [Does it matter how real The Crown is?]( - [Hollywood's Black film problem, explained by Elvis Mitchell]( - [How to handle an overload of grief]( - [Easy ways to organize your digital life, from photos to emails](  [Learn more about RevenueStripe...]( Manage your [email preferences]( or [unsubscribe](param=goods). If you value Vox’s unique explanatory journalism, support our work with a one-time or recurring [contribution](. View our [Privacy Policy]( and our [Terms of Service](. Vox Media, 1201 Connecticut Ave. NW, Floor 12, Washington, DC 20036. Copyright © 2022. All rights reserved.