The most appropriate word to use to characterize the quick demise of Sam Bankman-bitcoin Fried’s business is “shocking.’ Surprisingly, his staff members, who you’d imagine might have been there and experienced it personally, exhibit this mentality.
How is that possible? It might be connected to a lavish penthouse inside the Bahamas. The internal group who operated the trading behemoth Alameda Research and his ailing crypto platform FTX are the roommates of 30-year-old Bankman-Fried there.
Plenty of them is old coworkers at the algorithmic trading business Jane Street, while others he met while attending his alma institution, Massachusetts Institute of Technology. That comprises Alameda, the CEO Caroline Ellison, someone whose company was instrumental in the company’s demise and who, occasionally, dated Bankman-Fried, pertaining to those with knowledge of the situation.
FTX & Alameda personnel who were willing to speak with CoinDesk on terms of anonymity described constant harassment and violent threats as a result of the exchange’s financial troubles. It’s a room filled with potential conflicts, favoritism, and a lack of monitoring, they effectively argued.
When contacted by CoinDesk, employees at FTX and Alameda assert they were not notified of the recent events. They hypothesize that only Fried’s inner circle, which includes CEO Bankman Fried, was conscious that the exchange seemed to have, as the Wall Street Journal has claimed, leeched deposit accounts into its company sibling Alameda.
Shortly on Wednesday, one week after the story of CoinDesk ignited the crisis, Bankman-Fried confronted the workforce, stating, “I fully understand if you desire to depart,” according to an internal communication to staffers seen by CoinDesk.
In a coworking complex inside the Bahamas that already hosted Solana devs as well as other crypto incubating ventures, FTX & Alameda’s offices are situated close to one another.
While some FTX employees have recently praised Bankman-more Fried’s consistent communication, others are less enthused.