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How one of the richest men in cryptocurrency came a cropper, losing more than $40 billion

Ponzi Scheme

How one of the richest men in cryptocurrency came a cropper, losing more than $40 billion


You know you’ve really made it when the whole world knows you by your initials.

Guitarists genuflect to SRV, the late Stevie Ray Vaughan. Surfers globally bow down to MR and AI, Mark Richards and the late Andy Irons. Mention AB in the world of cricket and everyone knows exactly who you’re talking about: Allan Border.

But when it comes to the world of money, there are no real standouts. Bill Gates is just Bill Gates. Andrew Forrest is Twiggy. Sure, there was DSK — Dominique Strauss Kahn — but everybody would prefer to forget him.

You have to dig down into the mysterious and ever-shrinking world of cryptocurrency to find anyone who identifies as an initialled icon and, even then, potentially self-appointed.

This year has been incredibly tough for business. And, it’s been especially unkind for those out there on the perimeter where there are no longer any stars.

It also has signalled the end of perhaps one of the most ludicrous financial booms in history, the great crypto kleptomania. And the demise was hastened last week by the incredible crash of one of that universe’s masters, SBF — or Sam Bankman-Fried to his mother.

From a $US30 billion ($45 billion) fortune a week ago, his wealth had been whittled down to his last billion — at least if the New York Post is correct — following the implosion of his cryptocurrency exchange FTX, the world’s second-biggest.

It’s possible he’s lost the lot, although given he is a resident of the Bahamas — where legend has it he…

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