SBF was found guilty of seven counts of various frauds against FTX customers and Alameda lenders.
But it didn’t have to be this way. To change the outcome, he didn’t have to make any changes to the salacious tidbits that the public ridiculed him for — crypto, creative trading practices, lavish spending on high-end real estate, tawdry relationships and almost-communal living amongst the execs, playing video games during public interviews, massive celebrity endorsements, extravagant marketing campaigns, over-the-top spending, and justified bajillions in the name of effective altruism.
None of that really mattered, nor was it illegal.
All he had to do was one simple, if not easy, thing — bring in at least one financial adult and give them a voice. One person that says,
“No, Sam, it’s not OK to lose track of people’s money. You need a better accounting system.”
“No Sam, it’s not OK to back door client money from FTX to Alameda. Borrowing the FTX customer funds needs to be an above-board operation.”
“No Sam, it’s not OK to take the reigns off the risk management engine. If you’re losing money, find a legitimate way to handle it, which may include copping to your investors that you’re losing money. If Alameda loses money, that sucks for you and the investors, but it’s not illegal. If FTX customer funds disappear, that’s fraud.”
Yes, one naysayer adult. One guy or girl that says, “Um, you can’t do that.”
It didn’t have to be this way.
