How did Sam Bankman Fried fool so many to trust him with millions?

November 25, 2022

Pattern matching in computer science is the checking of specific sequences of data of some pattern. Unlike pattern recognition, the match has to be exact in the case of pattern matching. And why is this observation so jugular to the tragic relationship between SBF and his dearly unfortunate investors. Because SBF ticked all the right boxes. His parents were the gold standard of sobriety. They were both Stanford law professors. SBF was a ivy leauger who read physics in MIT. After that he worked as a trader in the prestigious Penny Street Capital where he perfected crypto arbitrage into a science and this led him to give birth to Alameda Research. I think what differentiated SBF from most actors in the crypto world was his enthusiasm to engage regulators. He was not defensive or for that matter mad dog territorial and irrationally paranoid abt the whole idea of regulation like so many in the Crypto fraternity. Infact SBF saw the guiding hand of officialdom as a necessary precursor to the final evolution of the crypto sphere and this attitude commanded a very high level of competence trust in starched collared investment community. I think many investors saw SBF as a sort of pathfinder or partner who they could collaborate with to navigate the volatility of the crypto sphere which they themselves regarded as a sort of financial terra incognito. I don’t think many really understand how compelling this aspect of the attraction is simply because it has a strategic dimension. For once the high brow investment community seem to have one of their own in a perplexing growth sector that could not only speak their language, but he was also seemed to have the uncommon power to demystify the Crypto sphere to make an incredible amount of money in a very short period of time. I really dont think it was possible to say no to SBF. You see when the object of desire which is opportunity in this case is packaged in such a way where the fidelity of the pattern matched is 1 to 1, its virtually impossible to say No. And let me share with you something scarier, it’s impossible to say no even if SBF was a lousy fake either. Because by that stage, the mythology of SBF has overtaken his reality and since many who signed off on the cheques really only wanted to see what they wanted to see, it was impossible for them to say No! That’s the real tragedy of FTX.

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