They Bought Crypto From a Klepto
FTX founder Sam Bankman-Fried's trail of tears spills into court
“The pressure and hopelessness of our predicament led me to entertain thoughts of suicide, marking the darkest period of my life.” - FTX victim.
Sam Bankman-Fried’s victims had dreams, too.
While the convicted FTX founder was buying Super Bowl ads, plying politicians with cash, courting venture capitalists, wooing celebrity endorsements, and snapping up real estate in the Bahamas, FTX customers were trying to secure their futures.
The Department of Justice filed victim impact statements this week ahead of Bankman-Fried’s March 28 sentencing. They detail decimated savings, emotional duress, anxiety, uncertainty, life disruption, and shaken faith in the legal and financial systems.
Here’s an instructive look at the misery following the collapse of Bankman-Fried’s $40 billion company and his $8 billion loot-job. (Names redacted in the court filing.)
“The money I had in the FTX.com platform was money I received as compensation for a car crash that left me disfigured when I was 19 years old. I kept this money ‘untouched’ for 30 years because I thought they could be the only way to give me an old age with dignity.”
“I have experienced sleep disturbances, loss of appetite, and heightened levels of anxiety, which have significantly impacted my ability to function on a daily basis. Furthermore, the financial strain resulting from this loss has caused significant personal problems, including difficulty in meeting financial obligations, strained relationships, and a sense of hopelessness about the future.”
“SBF’s actions not only robbed me of my financial security but also shattered my confidence in the integrity of financial systems.”
“Without SBF’s crimes … I would potentially be married. … I would potentially be having my own kids right now. … My family could rely on my and my financial stability. … PS: I would like to speak at the sentencing, but I wouldn’t be able to afford the cost associated with the journey.”
“We were brought to the brink of losing our home, struggling to meet mortgage payments and maintain a semblance of normalcy for our child. The pressure and hopelessness of our predicament led me to entertain thoughts of suicide, marking the darkest period of my life.”
“I had envisioned purchasing a home and starting a new chapter in life alongside my girlfriend. … My relationship … along with connections to friends, suffered irreparable damage as I became ensnared in a cycle of endless work. The ensuing isolation propelled me into a state of depression, a battle I have only recently begun to emerge from.”
“For days I didn’t know how to tell my whife [sic] (she had also given me money to put on FTX!!!) and to this day my father still doesn’t know anything because he couldn’t bear something like that (he had given me money to put on FTX!!!).”
“I am a father of 2 kids, hoping to get a third one. I receive the news about almost my entire capital being stolen by Sam and his crew. At first I got positive, believing in american justice. But with time, got anxiety problems, mood disorder, my plans to get a third child are hopeless and gone, because all my profit has been stolen.”
“In 2022, at the age of 24, I lost my entire life savings, which amounted to over $20,000. I had entrusted my savings to FTX.com not to buy or sell crypto, but to take advantage of the interest-bearing savings account offered by the platform. … The experience has eroded my trust in financial institutions.”
“I am a Singapore citizen and have been a cryptos investor since 2021. … Sam Bankman-Fried (SBF) was a MIT graduate with ties to people in the government. So, I trusted his management of FTX.”
“The investment … was a symbol of hope and a means to build a life with my partner. The delay in our marriage, caused by the financial instability that followed the collapse of FTX, is a stark reminder of how far-reaching the consequences of this ordeal are.”
“This ordeal was more than a financial setback; it was a threat to the foundation of my family and my own existence.”
“Justice is when the rich and powerful are prevented from abusing the weak and the poor.”
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