Cryptocurrency exchange FTX went from being valued at nearly $32 billion to filing for bankruptcy last week, and its founder, Sam Bankman-Fried, went from being the only ethical genius in the crypto space to being just a dude like the rest of us, albeit one who has lost a fortune to both clients and investors. He was even a regular at League of Legends. Despite famously play while pitching large venture capital firms on $200 million investmentsa new investigation reveals he was pretty crappy at that, too.
To recap: Bankman-Fried ran FTX. In just a few years, the cryptocurrency exchange has gone from nothing to plastering its name on all kinds of sporting events and magazine covers. It was seen as super valuable because it charged customers fees to buy and bet on cryptocurrencies, but also because Bankman-Fried was thought to be the next tech whiz to use FTX to launch a finance “super app” that would make cryptocurrencies legit.
One version of this is what he told venture capital firm Sequoia Capital, for example, during a meeting where he was actually playing League of Legends. Sequoia knew it, provided Bankman-Fried with more than $200 million in funding, gloated about the League of Legends playing in a profile on his website, e then he deleted it after FTX flattened and Sequoia had to tell investors it was one of those left holding the stock in what appeared to be the latest cryptocurrency Ponzi scheme.
Where has all the money gone? No one knows for sure yet, but one place he certainly didn’t go was paying for Bankman-Fried’s League of Legends educate. According to a investigation by the Financial Times, was seemingly terrible at Riot Games’ MOBA, playing over 1,000 games without hitting platinum. In fact, it appears he never left Bronze Tier II.
“There is no clear pattern here: as you would have expected [sic] for a suitably low-level player, SBF maintained low-to-medium win ratios with its top champions (plant mistress Zyra, crossbow-wielding witch hunter Vayne, and Egyptian-inspired dog god Nasus), “the Financial Times relationships.
Bankman-Fried’s last known game appears to be in September 2021, possibly not long after Sequoia’s now infamous pitch. In it, she played Vayne, the monster hunter who dedicated her life to destroying the demon that killed her family. He had six kills and four assists, but died 11 times. A highly recognizable performance, though arguably not inspiring cosmic brain state.
But having its mediocre League the revealed record is the least of Bankman-Fried’s worries at this point. Things somehow only kept getting worse for him and the investors and clients he stole billions. He was questioned by the Bahamian police and the United States Attorney’s office in Manhattan now he is looking into it. FTX may have been hacked over the weekend after $600 million just mysteriously drained from the exchange. And the balance sheet passed off to potential buyers and which has now become public following the start of bankruptcy proceedings makes absolutely no sense.
It appears to consist almost exclusively of cryptocurrencies that Bankman-Fried was personally involved in creating, as well as hidden columns, underexplained entries, seemingly confusing numbers, and typos. Worse yet, he doesn’t actually explain where all the money went. “It’s an Excel file full of howls of ghosts and screams of tortured souls,” wrote Matt Levine to Bloomberg. “If you look at that spreadsheet too long, you’re going to go crazy.”