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Tag: Bankman-Fried

  • Read a letter from Sam Bankman-Fried’s father.

    Read a letter from Sam Bankman-Fried’s father.

    Case 1:22-cr-00673-LAK Document 407-3 Filed 02/27/24
    Page 3 of 4
    programming staff used it for a Hackathon. Sam lived in it and – paid rent for that privilege – for
    six months-about half of the time he was in the Bahamas. Even when he was officially living in
    the apartment, he was more likely to be found elsewhere – often sleeping on a bean bag chair in
    the office. Like everything about Sam, that wasn’t an affectation. He just doesn’t care about the
    creature comforts that most of us value. He is similarly uninterested in hobnobbing with the rich
    and famous and generally uncomfortable with attention. He did what he thought he had to do for
    the good of the company, often at some significant personal cost to himself. What FTX spent on
    advertising, travel, and housing is in line with what comparable multibillion dollar companies
    spend, and a small fraction of what many do spend. For anyone who knows Sam, the popular
    portrayal of him as a high-rolling, celebrity-secking, CEO driven by greed is simply bizarre.
    I am the son of a small businessman and told Sam what I believe my father would have told him:
    take some money out for yourself and put it somewhere safe. Or buy something special, so you
    can enjoy life more. Others, including senior counsel, told Sam the same thing. According to
    one business journal, by 2022, Sam had a net worth of more than $20 billion. He could easily
    have sold a billion dollars’ worth of stock. He wouldn’t do that, though. He wanted to leave
    every penny in the business to finance its growth. He had a salary of $200,000, which was more
    than enough for his personal consumption needs. He had nothing “salted away” when the crash
    came.
    Barbara and I stayed with Sam in the Bahamas for the month following the collapse, and
    witnessed firsthand his single-minded focus on getting money back to depositors, long after there
    was any possibility he would be able to save any of his equity or wealth. About a week after the
    implosion, Sam and I were speaking to a prospective defense counsel. The lawyer was aghast
    when Sam told him that he was spending all of his time working with the Bahamian government
    to get depositors their money back. The lawyer strongly advised Sam to focus on his defense.
    “Are you aware,” asked the lawyer, “that even as we speak, there is probably a room of bright,
    hard-working and ambitious people somewhere whose goal is to put you in jail?”
    “Yup,” answered Sam, “and that’s pretty much irrelevant to me compared to helping depositors.”
    I recognize that the Sam I have described is strongly at odds with how the public sees him, and
    may seem unbelievable to the readers of this letter, including this court. I could add hundreds of
    other examples of his kindness and genuine and deep concern for others, but I’m not sure how
    much difference they would make, and doing so would surely try the patience of readers. I will
    add only that were the social costs of saying anything positive about Sam at this moment in time
    not prohibitive, I am confident many others who have known him throughout his life would
    describe much the same person.
    I want now to return to the challenges I referred to at the start, and their implications for
    sentencing. Sam has struggled throughout his life to learn and control things most of us take for
    granted, such as eye contact, small talk, and responding to social cues.
    There is a positive side to this struggle. Sam’s life experience has made him tolerant of
    diversity in the way most of us cannot be. Sam hired employees with communication
    difficulties so great that they could not otherwise get or keep another job. I remember him
    3
    Ex. A-2

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  • Read a letter from Sam Bankman-Fried’s father.

    Read a letter from Sam Bankman-Fried’s father.

    Case 1:22-cr-00673-LAK Document 407-3 Filed 02/27/24
    Page 3 of 4
    programming staff used it for a Hackathon. Sam lived in it and – paid rent for that privilege – for
    six months-about half of the time he was in the Bahamas. Even when he was officially living in
    the apartment, he was more likely to be found elsewhere – often sleeping on a bean bag chair in
    the office. Like everything about Sam, that wasn’t an affectation. He just doesn’t care about the
    creature comforts that most of us value. He is similarly uninterested in hobnobbing with the rich
    and famous and generally uncomfortable with attention. He did what he thought he had to do for
    the good of the company, often at some significant personal cost to himself. What FTX spent on
    advertising, travel, and housing is in line with what comparable multibillion dollar companies
    spend, and a small fraction of what many do spend. For anyone who knows Sam, the popular
    portrayal of him as a high-rolling, celebrity-secking, CEO driven by greed is simply bizarre.
    I am the son of a small businessman and told Sam what I believe my father would have told him:
    take some money out for yourself and put it somewhere safe. Or buy something special, so you
    can enjoy life more. Others, including senior counsel, told Sam the same thing. According to
    one business journal, by 2022, Sam had a net worth of more than $20 billion. He could easily
    have sold a billion dollars’ worth of stock. He wouldn’t do that, though. He wanted to leave
    every penny in the business to finance its growth. He had a salary of $200,000, which was more
    than enough for his personal consumption needs. He had nothing “salted away” when the crash
    came.
    Barbara and I stayed with Sam in the Bahamas for the month following the collapse, and
    witnessed firsthand his single-minded focus on getting money back to depositors, long after there
    was any possibility he would be able to save any of his equity or wealth. About a week after the
    implosion, Sam and I were speaking to a prospective defense counsel. The lawyer was aghast
    when Sam told him that he was spending all of his time working with the Bahamian government
    to get depositors their money back. The lawyer strongly advised Sam to focus on his defense.
    “Are you aware,” asked the lawyer, “that even as we speak, there is probably a room of bright,
    hard-working and ambitious people somewhere whose goal is to put you in jail?”
    “Yup,” answered Sam, “and that’s pretty much irrelevant to me compared to helping depositors.”
    I recognize that the Sam I have described is strongly at odds with how the public sees him, and
    may seem unbelievable to the readers of this letter, including this court. I could add hundreds of
    other examples of his kindness and genuine and deep concern for others, but I’m not sure how
    much difference they would make, and doing so would surely try the patience of readers. I will
    add only that were the social costs of saying anything positive about Sam at this moment in time
    not prohibitive, I am confident many others who have known him throughout his life would
    describe much the same person.
    I want now to return to the challenges I referred to at the start, and their implications for
    sentencing. Sam has struggled throughout his life to learn and control things most of us take for
    granted, such as eye contact, small talk, and responding to social cues.
    There is a positive side to this struggle. Sam’s life experience has made him tolerant of
    diversity in the way most of us cannot be. Sam hired employees with communication
    difficulties so great that they could not otherwise get or keep another job. I remember him
    3
    Ex. A-2

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  • Riot Games Trying To Get Out Of Terrible Crypto Sponsorship Deal

    Riot Games Trying To Get Out Of Terrible Crypto Sponsorship Deal

    FTX founder Sam Bankman-Fried is led away in custody after being arrested in The Bahamas last week

    FTX founder Sam Bankman-Fried is led away in custody after being arrested in The Bahamas last week
    Photo: MARIO DUNCANSON (Getty Images)

    Back in August 2021, Riot Games—the developers of League of Legends—signed a sponsorship deal worth tens of millions of dollars with cryptocurrency exchange FTX. You know, the exchange that is now bankrupt, with its founder arrested and facing serious fraud and money laundering charges.

    As Web3 Is Going Just Great’s Molly White reports, the deal was supposed to run for seven years, and involve FTX making “substantial payments” to Riot, starting with $12.5 million for the 2022 calendar year (and escalating to $12.875 for 2023, and so on). So far only $6.25 million of that 2022 sum has been paid, and there is almost zero chance Riot will ever see another cent, so the company has filed a case with a Bankruptcy Court in Delaware seeking to have the rest of the sponsorship deal nullified.

    In strictly business terms, that’s perfectly understandable. As Riot points out in their filing, FTX have declared bankruptcy, which should send the whole deal straight into the bin, no questions asked. Just in case anyone does ask questions, though, Riot have added, “There is simply no way for FTX to cure the reputational harm already caused to Riot as a result of the highly public disrepute wrought by the debacle preceding FTX’s bankruptcy filing. FTX cannot turn back the clock and undo the damage inflicted on Riot in the wake of its collapse.”

    Basically, Riot argues that FTX’s reputation has been so thoroughly trashed in the past few weeks that being even remotely associated with the failed exchange is causing Riot harm. To put a bow on the whole thing, Riot then throws in the fact FTX’s disgraced former boss Sam Bankman-Fried became notorious for playing Riot’s League of Legends during business meetings:

    Prior to, and throughout this media firestorm, Riot’s image and reputation to its customer base, remained inextricably linked to FTX through its former CEO, Mr. Bankman-Fried. Media outlets and Twitter commentators splashed images of Mr. Bankman-Fried playing League of Legends—Riot Games’ game— at the same time that FTX was crashing. Mr. BankmanFried is famous for his affinity for the game. He is well-known among investors to play League of Legends during meetings. He acknowledged on Twitter that he played “a lot more [League of Legends] than you’d expect from someone who routinely trades off sleep vs work.” Even Mr. Bankman-Fried’s ranking in League of Legends has been the subject of online commentary with public figures Alexandria Ocasio-Cortez and Elon Musk weighing in.

    Even back when this deal was first signed, in August 2021, it was agonisingly clear what the endgame for this whole scam was going to be, whether it was video game developers or NBA teams or overly-eager celebrities.

    You would think Riot would know this, especially now in the middle of all this, but another part of the filing argues that the FTX deal needs to be terminated because it is preventing the company from further “commercializing the crypto-exchange sponsorship category…currently owned by FTX. Fool me once, shame on you, etc, etc.

    Luke Plunkett

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