How FTX’s SBF Went From Being “The New JP Morgan” To A “Con Artist”

Pratik Bhuyan
December 1, 2022 Updated September 6, 2025
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Sam Bankman-Fried went from being a poster boy of crypto to being the most hated in a matter of few days. Weighing in on the situation, Jim Cramer, the American TV personality called SBF a “con artist” when asked about it in a recent interview with Andrew Sorkin on CNBC’s latest episode of SquawkBox.

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Change of Views

However, the same Jim Cramer once hailed SBF as the “new JP Morgan” when the FTX founder made headlines by buying out or providing credit lines to distressed crypto companies during the steep market fall of June 2022.

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SBF The Crypto Crusader?

Sam Bankman-Fried was most famous for saving the now-bankrupt crypto lender BlockFi by providing a $250 million revolving credit facility.

SBF had even gained the trust of America’s largest asset management firm, BlackRock, whose CEO recently disclosed to having a $24 Million investment in the defunct FTX exchange.

Read More: Blackrock CEO Larry Fink Says FTX Failed Due To FTT Token

Not just BlackRock, but FTX got accolades and financial support from top conglomerates like Sequoia Capital, SoftBank, Ontario Teacher’s Pension Plan and many others.

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The Ongoing FTX Saga

As reported earlier on CoinGape, FTX financed Alameda Research, billions of dollars worth of customer assets to finance risky trades and even personal loans to the management, thus paving the way for its sudden downfall. With only $1 Billion in liquid assets, FTX failed to bridge the gap and eventually had to file for bankruptcy.

Read More: FTX Exchange Finally Files For Bankruptcy

In what appeared to be a potential bailout of the troubled exchange, under a liquidity constraint, crypto giant Binance signed a letter of intent earlier this month to acquire its ailing rival, FTX. However, that plan failed a little more than 24 hours later following Binance’s due diligence on FTX.

Read More: SBF Resigns, John Ray III Joins As New FTX CEO

The renowned crypto exchange, once a leader in its domain, has crumbled into pieces in less than a few weeks. And SBF, who at one point had a net worth of over $16 billion, lost 98% of his wealth in a single day, following the demise of FTX.

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.