At the conclusion of an extensive 15,000-word Twitter thread that he never published, Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, expressed his candid assessment of his situation. He stated, “I’m broke and wearing an ankle monitor and one of the most hated people in the world. There will probably never be anything I can do to make my lifetime impact net positive.” He also acknowledged, “And the truth is that I did what I thought was right.”
During his time under house detention in December after being arrested and charged with fraud related to FTX’s collapse, Mr. Bankman-Fried wrote multiple pages of self-justifications, ranging from childhood memories to mathematical calculations. In an unpublished series of tweets spanning approximately 70 typed pages, he criticized some of his closest colleagues, interspersing his arguments with personal photos from his high school years and stock images. Throughout the narrative, there are links to music videos by Alicia Keys, Katy Perry, and Rihanna.
Once a prolific Twitter user known as X, Mr. Bankman-Fried, 31, labeled the thread as “a draft of a draft of a draft of an idea” and included links to 29 other files related to FTX. One document, titled “Inception V2,” is a lengthy critique of the company’s bankruptcy lawyers, featuring a screenshot from the movie “Inception.” Another link leads to a spreadsheet listing Mr. Bankman-Fried’s Amazon orders from 2021.
These unrevealed approximately 250 pages of documents provide insight into Mr. Bankman-Fried’s mindset during his eight months of home detention before his bail was revoked by a judge in August. The writings also offer details about his potential legal defense beyond what his lawyers have presented in court, shedding light on how he plans to justify his actions when his trial begins in October.
Prosecutors have accused Mr. Bankman-Fried of orchestrating a scheme to divert FTX customer funds to his hedge fund, Alameda Research, for venture capital investments, real estate purchases, and political contributions. He has pleaded not guilty and could face a lengthy prison sentence if convicted.
While under house arrest, Mr. Bankman-Fried shared these documents with Tiffany Fong, a social media influencer who focuses on the crypto industry and runs a YouTube channel. Ms. Fong, who visited him multiple times, eventually shared the documents with The New York Times.
In several documents, Mr. Bankman-Fried assigned blame to Caroline Ellison, his former girlfriend and former top executive, for contributing to FTX’s collapse. He described her as ill-equipped for her role as the head of Alameda, claiming she cried during a meeting and refused to implement trading strategies that would have protected his businesses from market crashes. In one document titled “Alameda’s Failure to Hedge,” he wrote, “She continually avoided talking about risk management – dodging my suggestions – until it was too late.” He also mentioned his strained relationship with Ms. Ellison, noting that their breakup followed a pattern in his relationships.
Mr. Bankman-Fried also criticized Sam Trabucco, the co-CEO of Alameda, in the unpublished Twitter thread. While acknowledging Mr. Trabucco’s good instincts for risk management, he alleged that Mr. Trabucco was planning to leave the company. He stated that Mr. Trabucco preferred spending time with romantic partners while sailing around the world on a boat.
Mr. Bankman-Fried’s former girlfriend and two other top advisers have pleaded guilty to fraud charges and agreed to testify against him. Another adviser has pleaded guilty without committing to cooperation. Mr. Trabucco has not faced any charges.
Once considered trustworthy in the crypto industry, FTX’s collapse in November resulted in substantial losses for customers and significant damage to the industry. After his arrest, Mr. Bankman-Fried was granted bail and moved to live with his parents in Palo Alto, California. During this time, he frequently entertained guests such as author Michael Lewis and various reporters.
During his house detention, Mr. Bankman-Fried spent much of his time in his study, playing computer games, setting up a chessboard, and occasionally sleeping on the couch. He focused on his legal defense, recording his thoughts on hundreds of pages of Google documents. He also mentioned that his family was installing a pickleball court for him in the yard.
Mr. Bankman-Fried handed over the documents to Ms. Fong in late January, although his intentions for sharing them were unclear. Ms. Fong, who suffered losses from the collapse of the crypto company Celsius Network, expressed sympathy for FTX’s victims and skepticism towards many of Mr. Bankman-Fried’s claims. She forwarded one document to a former Alameda engineer, who responded with a detailed rebuttal of Mr. Bankman-Fried’s assertions.
Throughout the draft Twitter thread, Mr. Bankman-Fried recounted his journey from his childhood in Palo Alto to purchasing a penthouse in the Bahamas near FTX’s headquarters. He recalled his meeting with Sam Trabucco at a math camp, where they formed a bond, and expressed his early admiration for Caroline Ellison. The draft also included personal photos, including one of Mr. Bankman-Fried holding a shirt gifted by Mr. Trabucco during high school.
In one section, Mr. Bankman-Fried included a link to a document he wrote in 2019, titled “Tonight We Are Young,” detailing a conference in Taiwan where he interacted with Changpeng Zhao, the founder of Binance, a crypto exchange.