FRAUDBATCH S19CRYPTO

FTX

Stole $8B in customer funds to gamble on shitcoins

$1.8B
Capital Raised
$32B
Peak Value
3 YRS
Lifespan
1M+ customers affected
Body Count

AUTOPSY REPORT

YC's poster child for effective altruism turned out to be effectively stealing. Built a crypto exchange, funneled $8 billion in customer deposits to his hedge fund Alameda Research while sleeping on a beanbag in a Bahamas penthouse. Sentenced to 25 years. YC quietly scrubbed him from their website.

DAMAGE: 1M+ customers affected

TIMELINE

2019Founded in Antigua, joins YC S19
2021-07Raises $900M Series B at $18B valuation
2022-01Super Bowl ad featuring Larry David
2022-11-02CoinDesk exposes Alameda balance sheet
2022-11-08Binance backs out of acquisition
2022-11-11FTX files for Chapter 11 bankruptcy
2022-12Sam Bankman-Fried arrested in Bahamas
2024-03SBF sentenced to 25 years in prison
DelveIRL

Satirical project. Not affiliated with Y Combinator. All information from public records.