Introducing: Scams, Money, & Murder

Jake Thacker's journey from a skeptical crypto investor to losing over $200,000 due to the collapse of FTX provides a cautionary tale about the volatile nature of cryptocurrency platforms.

Jake's Initial Investment In and Trust of Ftx

His crypto curiosity was piqued during the pandemic when others encouraged him to explore the market.

Jake's Crypto Interest Sparked by Pandemic Investments

Jake Thacker delved into the world of crypto during the pandemic in 2021 and 2022, after being influenced by friends. Initially skeptical, he soon found himself drawn into the realm of algorithmic trading bots and crypto communities, which transformed his casual interest into a series of substantial investments.

Jake Trusted Ftx Due to Celebrity Endorsements, Storing Much of His Crypto There

The allure of FTX was enhanced by its aggressive marketing campaigns, prominently featuring Super Bowl advertisements and celebrity endorsements. Jake trusted the platform due to notable figures like Tom Brady and Steph Curry backing it, deferring to the presumed thorough vetting by their financial teams. This trust led him to store large sums of his crypto assets on FTX.

Collapse of Ftx and Loss of Jake's Funds

However, trust turned to disbelief when he encountered severe problems during the platform's fall.

Jake Faced the Ftx "Spinning Wheel of Death" In Nov 2022 and Couldn't Withdraw Funds

In November 2022, the stark reality set in as Jake faced the so-called "spinning wheel of death" on FTX—a signal that he ...

The collapse of FTX, a significant cryptocurrency exchange, had profound and devastating effects on many of its users. One such user, Jake Thacker, experienced considerable financial hardship and a significant mental and emotional toll following the scandal.

Jake's Struggles After FTX Collapse

In the wake of FTX's collapse, Jake found himself in dire straits, striving to restructure his debts and navigate a relentless wave of challenges.

Jake Restructured Debts and Endured Two Years of Financial Hardship

Jake sought immediate assistance from a debt restructuring company, having leveraged significant sums with the expectation of a short-term loan arrangement with his creditors that he intended to repay quickly. However, the unfolding events led to foreclosure proceedings, and Jake found himself fighting costly legal battles with little to spare, indicating deep financial woes post-FTX collapse. Jake did not join class action lawsuits due to personal tribulations and the need to distance himself from the situation, but he did file a claim without seeing any remunerative outcome.

Tech Layoffs Worsen Jake's FTX Loss Recovery

A severe blow came when Jake was laid off from his job at Noom amid tech sector layoffs in February. Having lost around $800,000 to the market downturn and other factors, Jake’s unemployment rendered his situation direr, making debt repayment unfeasible. The financial strain forced him to consider chapter seven personal bankruptcy, though he faced a lengthy wait time to qualify.

Jake’s bankruptcy process was protracted, grappling with a lack of income, part-time work, and stringent qualification criteria. He described his interactions with trustees and the bankruptcy court as fruitless and disheartening, battling in a system that he perceived as unsupportive and obstructive to his recovery efforts.

Jake's Mental and Emotional Toll

The ordeal brought upon by the FTX episode imposed not only financial but also psychological distress on Jake.

Jake Found the Experience Challenging and Humbling, Affecting His Mental Well-Being

The collapse forced Jake to confront a new and humble reality defined by his stringent budget, exemplified by two and a half years of not shop ...

Jake Thacker offers a candid perspective on the dramatic downfall of FTX and its founder Sam Bankman-Fried, and shares his cautious approach to future crypto investing.

Jake's View of the Ftx Scandal

Jake Views Bankman-Fried As Privileged, Leveraging Connections to Build but Irresponsibly Operate Ftx

Thacker summarizes the FTX scandal as a venture that initially seemed promising but ultimately proved to be hollow, lacking true substance. He saw Sam Bankman-Fried as a privileged individual, determined to be a part of the PayPal Mafia's network state vision, which is associated with the decentralized collective principles Bankman-Fried claimed to support when starting FTX. However, Jake believes that Bankman-Fried neglected his responsibility to the company and stakeholders, blinded by his desire for prestige and association with the goals of his influential investors, suggesting that his motives were selfish.

Jake Believes Bankman-Fried Deserves 25 Years, but the Justice System Failed to Provide True Restitution For Victims Like Him

Jake does not regard Bankman-Fried as a mastermind villain but criticizes him for his irresponsible behavior toward FTX. Jake feels that while justice was served with Bankman-Fried’s likely sentence of 25 years, the verdict does not provide true restitution for the victims of the scandal. Thacker hopes Bankman-Fried is haunted by the widespread financial damage caused by FTX's collapse and suggests that true justice would involve substantial personal effort from Bankman-Fried to rectify the situation, rather than simply serving time in prison.

Advice for Future Crypto Investors

Jake May Return To Crypto Investing but Warns No Investment Is Completely Secure and Urges Thorough Research and Realistic Risk Assessment

Jake admits that he was swayed by FTX’s marketing and celebrity endorsements. However, following the platform’s collapse, he advises future crypto investors that no investment is entirely secure, underscoring the need for thorough research and realistic risk assessment. Jake himself may return to crypto investin ...