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Gambling, dating, orgy and fun of SBF in Bahamas

Sam Bankman-Fried, FTX, Alameda, Caroline Ellison, Massachusetts Institute of Technology, MIT

International

Gambling, dating, orgy and fun of SBF in Bahamas

The entire operation of fraudulent and now collapsed FTX crypto exchange was run by Sam Bankman-Fried (SBF) and his cabal of roommates, who were engaged in unlimited fun by spending lavishly in gambling, dating, and orgy parties. According to analysts who have already done certain level of studies on the mysterious case of Sam Bankman-Fried (SMF), they said, shocking is a word that aptly described the rapid fall of the FTX gang who had played cruel foul with people’s money. The entire operation of FTX was run by a gang of kids under the leadership of Sam Bankman-Fried. Sitting in luxury penthouse in the Bahamas, they were spending more than 18 hours every day on online gambling, video games, dating and organizing orgy parties. Many of the FTX members are former co-workers from quantitative trading firm Jane Street, others he met at the Massachusetts Institute of Technology (MIT), his alma mater. All 10 are, or used to be, paired up in romantic relationships with each other. That includes Alameda CEO Caroline Ellison, whose firm played a central role in the company’s collapse – and who, at times, has dated Sam Bankman-Fried.

Among Sam Bankman-Fried’s nine housemates are FTX co-founder and Chief Technology Officer Gary Wang, FTX Director of Engineering Nishad Singh and Caroline Ellison of Alameda, Bankman-Fried’s trading business that’s at the center of the current chaos and on which the Wall Street Journal reported got US$10 billion of FTX customer money. The remaining six are also FTX employees.

“Gary, Nishad and Sam control the code, the exchange’s matching engine and funds”, the first person familiar with the matter told reporters. “If they moved them around or input their own numbers, I’m not sure who would notice”.

A third person familiar with how the company operated said: “They’ll do anything for each other”.

FTX insiders say, the company was a place full of conflicts of interest, nepotism and lack of oversight.

“The whole operation was run by a gang of kids in the Bahamas”, a person familiar with the matter told media.

FTX and Alameda employees say, they have been kept in the dark about the events of the past week, adding that only CEO Bankman-Fried’s inner circle may have had knowledge that the exchange, as reported by the Wall Street Journal, siphoned customer funds into corporate sibling Alameda.

Sam Bankman-Fried’s father, Stanford Law professor Joseph Bankman, also plays a role at the company. He appeared on an episode of the “FTX Podcast” in August 2022, describing charity and regulation-related projects in which he was involved in for the company.

Wang, Singh and Ellison also comprise the board of Bankman-Fried’s FTX Foundation, the philanthropic arm of the company. Several housemates, including Bankman-Fried and Ellison, are active participants in effective altruism, a movement that “aims to find the best ways to help others”, possibly through philanthropy.

In the Bahamas, FTX and Alameda’s offices are also located steps apart in a coworking compound that also housed Solana developers and other crypto incubation projects.

While Sam Bankman-Fried and Caroline Ellison were the chief thugs of FTX and Alameda, they were enjoying encouragement and cooperation from other friends and buddies, who knew they were running a massive scam venture and robbing-off hundreds of millions of dollars from people, including some employees of FTX who had put their life-savings in this fraudulent venture as they trusted that everything was fine.

Meanwhile, a section of FTX and Alameda employees are receiving life threats and threats of intimidation and asked to remain silent on what actually were happening in these companies. Most of the employees are in fear of not only losing their jobs but also never getting refund of their life savings that had been put in these Ponzi schemes.

Tajul Islam is a Special Correspondent of Blitz.

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