The more I read about this, the more Im absolutely dumbfounded that Sequoia poured money into them. It took an outside executive 1 day to find out how effed their balance sheet was. Did Sequoia not perform any due diligence?
"Of that total, $1 billion went to Bankman-Fried in the form of a personal loan, while $2.3 billion went to an entity he controls, Paper Bird (Bankman-Fried has told Forbes that owns 75% of the entity, with Wang owning the rest)—so that’s another nearly $1.73 billion at Bankman-Fried’s disposal."
SBF apparently wanted to get in on the Twitter buyout with Elon:<p><a href="https://danluu.com/elon-twitter-texts/#12" rel="nofollow">https://danluu.com/elon-twitter-texts/#12</a><p><a href="https://danluu.com/elon-twitter-texts/#62" rel="nofollow">https://danluu.com/elon-twitter-texts/#62</a>
I find it decently unlikely that anything serious happens to Bankman-Fried. There is a zero percent chance the people he helped funnel money into will see a whiff of an investigation.<p>The level of corruption is too high in US finance and politics for that to happen.
This whole story has an odd feeling to it. One has to wonder if a Bankman-Fried, with all of his connections, was the Trojan horse for the public outrage to ban crypto.