Benzinga - Few people in modern history have fallen faster than FTX Trading Ltd. Founder Sam Bankman-Fried, who went from a financial genius to a federal prisoner when his cryptocurrency exchange failed. Perhaps the most obvious reminder of that for Bankman-Fried is the alternative currency he has been reduced to trading in the federal penitentiary: canned mackerels.
From Cryptocurrency To Canned Fish: A New Kind Of Alternative Economy
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However, they were banned for health reasons in 2004 and canned mackerels or "macks" as they are known on the inside, became the currency of choice among federal prisoners. Macks can be traded for a variety of services, including but not limited to:
- Haircuts
- Laundry services
- Legal brief preparation from prison lawyers
- Shoe shines and shoe repair
Canned Mackerels Even Have a Benchmark
It's a bitter irony that the same skills Bankman-Fried acquired as a cryptocurrency trader while building his criminal empire would prepare him for life as a federal inmate. Unfortunately for FTX clients left holding the bag when Bankman-Fried's criminality was discovered, macks can't be used to cover their losses.
A Cryptocurrency Superstar's Meteoric Rise
In 2018, Bankman-Fried founded the FTX exchange and found himself in the perfect position to take advantage of the surge in cryptocurrency value that took place during the COVID-19 pandemic. FTX's worth shot through the roof and Bankman-Fried became a billionaire who espoused viewpoints on everything from government regulation to "effective altruism." He even started his own cryptocurrency FTT. No one could have imagined his star would fall as quickly as it rose.
A Hard Fall For FTX And Its Account Holders
He even went so far as to surreptitiously use FTX client funds to cover Alameda Trading's losses. Bankman-Fried's indiscretions may have never come to light if not for a failed deal with Binance, which backed out of a deal to acquire FTX once it discovered numerous irregularities in FTX's handling of client funds. This led to FTT losing an estimated 80% of its value and a shocking chain of events.
Within the span of a few chaotic days in November 2022, Bankman-Fried resigned, lost his status as a billionaire and FTX went bankrupt. Most of FTX's client holdings were wiped out along with it. Once the Securities and Exchange Commission got involved, Bankman-Fried could no longer hide the fact that he was illegally using FTX client funds to prop up Alameda Research.
A Lifetime Of Mack Trading For Sam Bankman-Fried
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