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Fortune
Fortune
Business
Will Daniel

Former FTX users say the failed crypto exchange was a 'Ponzi scheme.' Here's how Ponzis work

Sam Bankman-Fried, founder and former chief executive officer of FTX Cryptocurrency Derivatives Exchange, during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, Aug 17, 2022. (Credit: Jeenah Moon—Bloomberg/Getty Images)

Until recently, Sam Bankman-Fried, or SBF, was crypto’s golden boy, known for building his cryptocurrency exchange, FTX, into a $32 billion giant in just two years.

But the disheveled, left-leaning 30-year-old gamer was living a lie. SBF, who claimed to be a minimalist philanthropist, had used customer funds to prop up his failing crypto empire and fund his lavish lifestyle.

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