FTX: A Missing Piece Of The SBF Puzzle

Dec. 01, 2022 7:23 PM ETFTX Token (FTT-USD)6 Comments
Victor Haghani profile picture
Victor Haghani


  • We think there's one aspect of the SBF/FTX/Alameda story that hasn't received the attention it deserves.
  • On multiple occasions, SBF stated that he made financial decisions with little or no aversion to risk.
  • We're all entitled to our own risk preferences, but our risk preferences have consequences if we act consistently with them.
  • In the case of SBF, his risk preferences made it almost certain that he'd go bust, and quickly.
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There's much that's being written about Sam Bankman-Fried [SBF] and the choices he made at FTX (FTT-USD). We think there's one particular aspect of his thinking and actions that has received less attention than it deserves, and perhaps explains better

This article was written by

Victor Haghani profile picture
Victor Haghani has spent 30 years actively involved in markets and financial innovation. He started his career in 1984 at Salomon Brothers, in research and then in the Bond Arbitrage group run by John Meriwether. Victor was a founding partner of LTCM. After a 10 year sabbatical from the investing business, Victor founded Elm Wealth (www.elmwealth.com) in 2011 to help investors manage their savings in an efficient and disciplined manner, and to capture the long-term returns they ought to earn.Victor has published research on a range of financial topics, but his main interest has been on trade sizing and Portfolio Choice and Lifetime Consumption. His most popular lecture is a TEDx talk titled "Where are all the billionaires, and why should we care?"

Disclosure: I/we have a beneficial long position in the shares of VTI, SPY, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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