How Sam Bankman-Fried Sportswashed an $8 Billion Crypto Fraud, Starring Tom Brady and Steph Curry

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Pablo Torre Finds Out 50 min 18 speakers 8 chapters transcribed
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What is the story behind Sam Bankman-Fried and FTX?

Unnamed 1:32
It put him on the cover of Fortune as the next Warren Buffett and Forbes as the next Mark Zuckerberg. And it put him all over sports itself. You may remember this. FTX had a Super Bowl commercial. Sam was famously endorsed by Tom Brady, Steph Curry and Shohei Ohtani and many of the best athletes in America. all of which turned out to be an enormous problem.
Unnamed News Anchor 1:59
One of the most powerful people in the cryptocurrency industry, Sam Bankman-Fried, arrested overnight in the Bahamas. The federal charges just unsealed. They include eight counts, including wire fraud, securities fraud, and intent to defraud the United States government.
The government also contends that Bankman-Fried was using these customer deposits to both cover bad bets that he made at his crypto hedge fund, Alameda Research, and to make $100 million in campaign contributions. All in, we're talking about more than $8 billion worth of FTX customer money that went missing. Bankman-Fried has pleaded not guilty to all charges. This is always sort of a gamble, right? The defendant taking the stand in their own trial, the defense putting him up there. How's he doing so far?
Michael Lewis 2:45
poorly to really poorly. A jury has found FTX founder Sam Bankman-Fried guilty. Guilty. Guilty on all seven counts against him.
Unnamed 2:59
Yeah, f***ing insane. That trial was this month, by the way, not so far from our office here in New York. And it did feel like one minute Sam Bankman Freed was the good guy in charge of our entire technological future. And the next minute he was in jail. And all of this was humiliating for sports for many reasons. Like this next video, which I just had to show to producer Ryan Cordes, which is from June 2021.

How did celebrity endorsements impact FTX?

Unnamed Sports Commentator 3:27
It's official. The home of the Miami Heat is now FTX Arena. The name was formally converted at an event at the arena just a short time ago. The name will stick around for the next 19 years. Officials with FTX say today marks the start of a new era. A new era.
Will Manso 3:45
What an era. Do you remember that era? It looked like the celebration for the big three with the heat. I don't know why there was so much confetti.
Unnamed 3:50
Yeah, yeah, yeah. It was them saying, not 17, not 18, 19. 19 years. That's right. It lasted 19 months, dude. Well, they got one number right. You got to give them that, bro. So FTX, that crypto exchange, is Sam Bankman Freed's company, right? This was Mr. FTX. This was Mr. Miami Heat. And that deal was supposed to be worth $135 million over the 19-year span between Sam Bankman Freed and FTX and Miami-Dade County. Yeah, make that clarification. It was the county, not the heat. Except the heat also annually, we're going to be making $2 million a year. Oh. And so all of the optimism of that confetti, it made me think about who we know who might have been there when all of this was going down. And of course, we found someone.
Will Manso 4:40
Dude, of course, you know I watch every single Heat game. And my boy, Will Manso, my boy, one of the best reporters in the country. I remember he interviewed Sam Aikman-Fried one time on a game.

What led to Sam Bankman-Fried's arrest?

Unnamed 4:49
Yes. Will Manso, in-arena reporter for the Miami Heat, was right there courtside with the man in question.

How did FTX's branding strategy involve sports?

Unnamed Journalist 5:00
That morning I get up. As normal, my producer sends me an email for the Heat show that night and says, hey, you're interviewing this guy, Sam Bankert-Fried. He's the founder, the owner, the CEO, whatever you want to call it, of FTX. And the arena being FTX, tonight's a big opening night. It's going to be all in Miami shirts everywhere. Everybody's going to be excited.

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