The aforementioned events were followed by a string of revelations concerning both FTX and the trading company Alameda Research, which was also founded by Sam. Both companies conducted transactions between themselves, engaged in insider trading, misused client funds and more. It would seem that after all that had happened there was little left of Bankman-Fried's reputation. However, major US news publications still continue to defend him and even make him a "victim" of coincidence.

What is being said about the collapse of the FTX exchange?

Popular sources such as The Wall Street Journal, The New York Times, The Washington Post, Forbes and some others are covering the FTX scandal and subsequent collapse with “rose-tinted glasses”. That is, they predominantly refuse to condemn Backman-Fried and his entourage for using and abusing client funds.

WSJ headline

Evaluate the headline in The Wall Street Journal – “Bachmann-Fried’s plans to save the world went down in flames”. The article covers Sam’s biography in as positive a tone as possible, focusing on the unfortunate environment FTX finds itself in.

And here’s a quote from another WSJ publication.

Bankman-Fried said his parents, who taught law, had instilled in him an interest in utilitarianism and the philosophy of striving to do the greatest good for the greatest number of people. He said he began putting these ideals into practice when he studied physics at the Massachusetts Institute of Technology. Concerned about the suffering of animals on factory farms, he stopped eating meat.

And how can one not feel compassion for poor Sam, who had to go through enormous hardship to win his noble place? By the way, there’s not a hint of “interesting details” about the leisure time of former Alameda Research executive Caroline Allison and Sam’s other colleagues in the article.

Ex-CEO of FTX Sam Bankman-Fried

According to Cointelegraph sources, much more attention was paid by journalists to Future Fund, the non-profit arm of FTX. Here’s the relevant rejoinder.

The collapse of Mr Bankman-Fried’s empire has resonated far beyond its Bahamian base, in science halls and pioneering labs around the world. According to people familiar with the goings-on, several grantees were left owing funds after the collapse of FTX.

And here’s what the Washington Post says about Sam and his brother Gabe, who wanted to “protect the world” after the COVID-19 pandemic began.

A Washington Post analysis of lobbying declarations, federal documents and other sources revealed that since October 2021, the brothers and their subordinates have spent at least $70 million on research projects, campaign donations and other initiatives aimed at improving biosecurity and preventing the next pandemic.

Gabriel Bankman-Fried, brother of FTX founder

Again, the topic of affected FTX investors, who may be waiting decades for their compensation, is not addressed here either. There is also no attention paid to the disastrous state of the crypto market and Bitcoin’s falling price, which could lead to a series of bankruptcies of other crypto firms and has already started to do so: just remember the story of BlockFi platform, which filed for bankruptcy the day before as well.

However, Bankman-Fried’s promotion in the media field is unlikely to be a success, and in the crypto world, the former FTX CEO’s reputation is completely lost. Nor should we rule out the high likelihood of serious punishment for Sam – a fraud operation of his magnitude could well land him in prison for a long time.

Now we can think of the more curious consequences of the bourse going bankrupt. According to sources, its collapse has affected visits to Miami’s high-end nightclubs. Previously, wealthy crypto-enthusiasts often treated everyone to drinks and expensive bookings, but the general market decline has taken its toll.

The fall of Bitcoin and other cryptocurrencies

In particular, Miami nightclub E11even’s operating partner Gino LoPinto said that after his establishment started accepting cryptocurrency payments, it processed $6 million worth of transactions between April and December 2021. In the last three months, however, the club has recorded a markedly lower number of transfers at just about $10,000.


We think this campaign to save Sam Bankman-Fried's reputation sounds rather dangerous. It suggests that the FTX founder could in theory escape punishment for his activities or at least receive an unfair verdict. Here, however, one still wants to hope for a judicial system that takes into account the billions of dollars of users lost through Sam's fault.