Sam was to have testified before a Congressional hearing about his financial dealings. However, a federal prosecutor filed criminal charges against him, and the Bahamian authorities obligingly locked him up before he spilled the beans.
And so many beans to spill. Commentators estimate Sam has one million creditors, primarily investors.
The mainstream media has portrayed Bankman-Fried as a naive and inexperienced investor who got over his skis. I think that's bullshit.
SBF is no country bumkin. He graduated from the Massachusetts Institute of Technology with a degree in physics.
Sam's dad, a professor at Stanford School of Law, is a tax specialist who got his law degree from Yale. Sam's mom, a recently retired Stanford law professor, has three degrees from Harvard, including a law degree.
So what's next for Sam Bankman-Friedman and his crypto empire, which some people describe as a giant Ponzi scheme?
There are two possibilities. If Sam's shenanigans are fully exposed, the public may discover that many influential politicians profited from Sam's activities, which could trigger a political earthquake and multiple indictments.
On the other hand, the full extent of this scandal may never come to light. Sam is in a Bahamian jail awaiting extradition to the United States. Sam might be prosecuted vigorously, but he will likely take a plea deal without ever publicly testifying.
Regardless of how this saga plays out, Americans can learn a lot from Sam Bankman-Fried and the FTX fiasco.