The GuardianThe Guardian

Sam Bankman-Fried was hailed as a crypto wonder child. What happened?

By David Gerard

15 Nov 2022 · 3 min read

Editor's Note

If you're curious about Sam Bankman-Fried's extraordinary career, here's the lowdown from Guardian columnist David Gerard. His conclusion? Crypto is "all but unregulatable".

Last Tuesday, FTX, the second-largest cryptocurrency exchange in the world, closed withdrawals, blaming “severe liquidity problems”. By Friday, FTX had filed for bankruptcy.

After a stupendously profitable asset bubble in 2021, the cryptocurrency industry suffered harsh reversals in 2022. A string of high-profile collapses – Terra-Luna, Three Arrows Capital, Celsius Network, Voyager Digital – lost investors a fortune, tanked prices and demolished market confidence. But FTX’s sudden collapse caught almost everyone by surprise.

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