On 22 September last year, a fascinating article appeared on the website of Sequoia Capital, one of the leading venture capital firms in Silicon Valley. (It trades under the motto: “We help the daring build legendary companies.”) The article in question was a breezily readable piece about a tech wunderkind who had recently flashed on to the company’s radar screen. His name was Sam Bankman-Fried (henceforth known as SBF) and he was the founder of Alameda Research, a hedge fund specialising in cryptocurrency, and FTX, a spectacularly growing and profitable exchange that enabled holders of crypto assets to trade efficiently and freely.
Today, that glowing tribute to this young genius is nowhere to be found on Sequoia’s website. Why? Because only the other day a New York jury convicted him of fraud and conspiracy to launder money in a crushing verdict that could keep the lad in prison for decades – and perhaps also whet the appetite of US authorities for bringing the crypto sector to heel. In the end, about $8bn of FTX’s investors’ money was missing. The verdict has also mightily embarrassed the top-tier venture capitalists who were mesmerised by SBF’s ambitious fantasies – to the point where the lead sucker, Sequoia, felt obliged on 10 November to bury the online evidence of its delusions by removing the profile from its website.
