How FTX built a house of cards

A few months ago, news broke of an insider trading ring at Coinbase, one of the many crypto exchanges hoping to make the world of magical Internet money easy for normals. SEC and other authorities acted swiftly and nailed down the perpetrators; their ill-gotten gains were around million-and-a-half dollars. The accused awaits sentencing. The swift action, in that case, is in sharp contrast to the largest cryptocurrency failure at FTX. 

The founder of the bankrupt exchange, and the man at the heart of this multi-billion dollar scandal, Sam Bankman-Fried, is instead invited to the U.S. Congress for “hearings.” 

Instead of being behind bars in custody, SBF is giving interviews to publications like Vox and The New York Times. Both these articles are a disgrace because both publications failed to ask the only question that mattered. Instead, they allowed SBF to come up with justifications, reasons, and bullshit excuses. Others are giving legitimate coverage


In Good Times, FOMO beats Diligence

red and blue light streaks
Photo by Maxim Hopman on Unsplash

Ever since the FTX story broke, I have had two recurring thought. This company reminds me of Enron, the energy company that wanted to make markets in everything — especially in gullibility. I wrote about their remarkable similarities in my piece for The Spectator, which is a news outlet where I have recently become a contributor.  

In my piece, I wrote:

“Tiger Global, Sequoia Capital, Softbank, Lightspeed, Temasek, Blackrock and others invested over a billion in the company which at one time was valued at $32 billion. FTX and Alameda Research’s intermingled ownership should have raised eyebrows, but history shows greed trumps diligence.”

According to media reports, Sequoia wrote off its entire $213.5 million investment in the company. The question is not just Sequoia, but how did all these giants of risk capitalism not notice the most basic of all risks?

They aren’t


12/11: What I am reading today

Here are some of the stories that caught my attention today. Some of them are about technology, but not all of them. Updated all through the day, and shared via email newsletter in the evening. You like the links, sign-up for the email newsletter.

  • Four Days trapped at sea with Crypto’s Nouveau Riche:  How many of you remember reading about The Predator’s Ball. This story of a Crypto cruise in the Mediterranean Sea has shades of that story and is livened up by writer Laurie Penny’s skills. There are so many good lines in here. I quite enjoyed it. (Read on Breaker Magazine)
  • Nike and Boeing are paying Sci-Fi writers to predict their futures. Read on Medium.
  • How Doug Engelbart pulled off the mother of all demos. One of the best pieces you can read today or for that matter anytime. Read on Wired.