Shattered Dreams: FTX, Alameda, and SBF's Saga

Roughly twelve months following the dramatic collapse of FTX and Alameda, a former engineer from the latter company has stepped into the light.

The individual, who once held an engineering role at Alameda Research, has now surfaced with allegations concerning X. These allegations detail the unfortunate event where Sam Bankman-Fried (SBF), his former superior, purportedly absconded with his entire life savings.

Aditya Baradwaj has masterfully portrayed the ascent and descent of FTX, uncovering the paradoxes, lofty aspirations, and heartrending aftermath that followed.

As an engineer at Alameda Research, I had my entire life savings stolen from me by my former boss: Sam Bankman-Fried.

Now, after months of recuperation from the craziness of the FTX collapse, I’m ready to tell my story.

Let’s start at the beginning:

(1/25) ????#SBF #FTX pic.twitter.com/x5wKvT0Dy2

— Adi (e/acc) (@aditya_baradwaj) August 23, 2023

SBF’s Elusive Dream

Baradwaj commenced his narrative by recounting his entry into Alameda Research, following his departure from a position at Google. He proceeds to recollect his initial day at the firm, a day filled with enthusiasm for working at a cryptic, diminutive crypto establishment spearheaded by SBF.

As per the former Alameda engineer, his inaugural interaction with Bankman-Fried deviated from the norm, with the executive partaking in a video game during a business discussion.

The 4th floor tenant’s name on the directory was conspicuously empty, revealing only that they shared the building with names such as “Pacific Lutheran Theological Seminary”. Hardly the neighbors one would expect for a multi-billion-dollar crypto trading firm.

(5/25)

— Adi (e/acc) (@aditya_baradwaj) August 23, 2023

 Furthermore, he highlighted the dearth of media attention around the founder and the enigmatic states of Alameda and FTX. Over time, he unearthed the irony that SBF’s dominion, although an advocate for decentralized finance, was propped up by centralized custodial platforms – a contradiction emblematic of his approach.

The former engineer from Alameda also emphasized the symbiotic collaborations between Alameda and FTX, revealing a complex network of interwoven connections, shared spaces, and a vision that surpassed the confines of a mere crypto exchange.

The Ambitious Bahamas Project

Baradwaj elucidated SBF’s audacious vision of revolutionizing the Bahamas, where FTX’s earnings contributed a significant chunk of the nation’s GDP – more than 10%. The blueprint encompassed the establishment of a vaccine manufacturing facility to counter sluggish FDA endorsements, political contributions, and even contemplations on advancements in biotechnology, coupled with altruistic endeavors like distributing mosquito nets and promoting veganism.

Baradwaj detailed how his life took an unforeseen turn, involving opulent residences, globetrotting escapades, and mingling with notables from the entertainment and sports realms.

I experienced opulence the likes of which I’d only seen before in movies.

Got flown around the world on a regular basis between Berkeley, Hong Kong, and the Bahamas.

Brushed elbows with celebrities, sports icons, and political figures.

(20/25)

— Adi (e/acc) (@aditya_baradwaj) August 23, 2023

Nonetheless, he soon grasped the recklessness of FTX’s risk management and the burden of technical indebtedness, factors that eroded the company’s fiscal foundation. SBF’s noble vision metamorphosed into a financial catastrophe for stakeholders, employees, and patrons who had placed their trust in the founder.

In the aftermath, the once-promising headquarters of FTX now languishes in abandonment. Sam Bankman-Fried himself confronts potential incarceration after breaching the conditions of his house arrest, underscoring his inability to adhere to the very principles he advocated. Meanwhile, Baradwaj has pledged to delve further into the situations surrounding FTX and Alameda, offering a transparent glimpse into the internal machinations of these corporations.

Yet at the same time, I saw irresponsibility:

Careless risk management for a company handling billions of dollars in capital.

Technical debt that would make any software engineer shed a tear.

Millions lost in wasteful spending, and the hubris that it wouldn’t matter.

(21/25)

— Adi (e/acc) (@aditya_baradwaj) August 23, 2023