Scams, Money & Murder: Interview with Jake Thacker, FTX Scam Victim

Podcast Information:

• Title: Scams, Money, & Murder
• Host: Nicole Lapin
• Episode: INTERVIEW: Jake Thacker, FTX Scam Victim
• Release Date: April 24, 2025
• Description: Every Thursday, dive into the dark side of finance. From cutthroat con artists to billion-dollar scams, and even murder, Nicole Lapin takes you through the world’s wildest financial crimes, featuring experts and survivors.

1. Introduction to Jake Thacker’s Story

Nicole Lapin introduces the episode by highlighting the devastating impact financial scams can have on ordinary individuals. She welcomes Jake Thacker, who lost over $200,000 in the FTX collapse, sharing his firsthand experience as a victim.

Quote:

[00:08] Jake Thacker: "There was nothing in our mind where an entire platform in 24 hours, in 48 hours could just vanish. It's this cycle that is very difficult to get out of. It could happen to normal people in the blink of an eye."

2. Jake’s Entry into Cryptocurrency and Investment in FTX

Jake explains his initial skepticism towards Bitcoin and how the pandemic period (2021-2022) influenced his entry into cryptocurrency. Encouraged by friends and community members, he began investing modest amounts which eventually grew into significant investments as he saw success.

Quote:

[05:42] Jake Thacker: "It started out as a hobby, started out as small amounts, $100 here, $200 there. But then over time, as more success came in and I felt more comfortable, it turned into a real thing and turned into real money."

3. The Appeal of FTX and Influential Endorsements

Jake discusses how FTX initially attracted him with its promises of lower transaction fees and innovative tokens. The platform's aggressive marketing, including endorsements from celebrities like Tom Brady and Steph Curry, played a crucial role in building trust and legitimacy.

Quote:

[12:22] Jake Thacker: "If Steph's in there, if Tom's in there, he can't be that bad. And my initial approach to the platform was not to use it as a trading platform. It was just to hold funds."

4. Red Flags and the Collapse of FTX

Despite the initial trust, red flags began to emerge when Binance, a major competitor, announced the liquidation of all FTT tokens, signaling distrust in FTX's stability. This announcement was a significant indicator to Jake that something was wrong, though he was initially unsure of the extent.

Quote:

[22:07] Jake Thacker: "Their attention is so focused on this now that they're not focused on the next thing that could happen. And of course, it's just a matter of time."

5. The Aftermath: Losing Funds and Realizing the Scam

In November, FTX abruptly ceased operations, leaving Jake and thousands of others unable to access their funds. The realization that the funds were irretrievably lost was both shocking and terrifying.

Quote:

[23:27] Jake Thacker: "There were some leading indicators, right. And that kind of thing. But in all honesty, myself and others, again in retrospect, probably should have been paying more attention... But by that point, it was too far gone."

6. Personal and Financial Impact

Jake delves into the severe financial and emotional toll the collapse had on his life. With significant investments lost and subsequent job layoffs, he faced mounting debts and had to navigate the complexities of personal bankruptcy.

Quote:

[37:38] Jake Thacker: "It was a very challenging. But the challenge also brought a lot of opportunity for me to discover and question... It was a humbling experience."

7. Reflections on Sam Bankman-Fried and Justice

Jake shares his evolving perspective on Sam Bankman-Fried (SBF), moving from viewing him as a mastermind villain to recognizing him as a privileged individual whose actions had catastrophic consequences for ordinary investors. He critiques the justice system for not adequately addressing the needs of the victims.

Quote:

[50:56] Jake Thacker: "I hope he's haunted by the fact of the detriment to people... The damage has been done."

8. Lessons Learned and Advice for Future Investors

Despite his harrowing experience, Jake remains open to the possibility of future investments, emphasizing the importance of thorough research and risk assessment. He advises potential investors to stay vigilant and informed.

Quote:

[57:27] Jake Thacker: "Ensure that you're comfortable with what you are investing in and that you have done enough of the research and vetting that you can minimize as much risk as possible."

9. Final Thoughts and Support for Victims

Jake urges other victims of financial scams to advocate for themselves and utilize available resources to seek restitution. He highlights the systemic issues that make recovering losses difficult and calls for better support mechanisms for victims.

Quote:

[60:43] Jake Thacker: "If you feel like that has happened or you've definitely have been impacted by it, then don't just write off your losses like fight for it. Because there is the potential to get your some portion of your pie back."

10. Conclusion

Nicole Lapin concludes the interview by thanking Jake for his courage in sharing his story, underscoring the personal and widespread impact of financial scams like the FTX collapse.

Quote:

[62:05] Nicole Lapin: "Thank you so much for sharing your story with us. It takes a lot to speak about this openly and honestly."

Key Takeaways:

• Trust in Influencers: Celebrity endorsements can significantly influence investment decisions, sometimes overshadowing critical evaluation.
• Red Flags: Sudden actions by competitors or major players in the market can serve as warning signs of underlying issues.
• Systemic Challenges: Recovering losses from large-scale financial scams is fraught with legal and bureaucratic hurdles.
• Personal Impact: Financial scams can devastate individuals' financial stability, emotional well-being, and future prospects.
• Advocacy and Awareness: Victims should seek support and advocate for better systems to protect and assist those affected by financial fraud.

Notable Quotes with Timestamps:

• Jake Thacker [00:08]: "There was nothing in our mind where an entire platform in 24 hours, in 48 hours could just vanish. It's this cycle that is very difficult to get out of."
• Jake Thacker [05:42]: "It started out as a hobby, started out as small amounts, $100 here, $200 there. But then over time... it turned into something that I thought I could pivot a lot of my current portfolio into."
• Jake Thacker [22:07]: "It was extremely challenging. But the challenge also brought a lot of opportunity for me to discover and question."
• Jake Thacker [50:56]: "I hope he's haunted by the fact of the detriment to people... The damage has been done."
• Jake Thacker [60:43]: "Don't just write off your losses like fight for it. Because there is the potential to get your some portion of your pie back."

This comprehensive summary captures Jake Thacker's journey through the FTX scam, highlighting the mechanisms of deceit, the personal ramifications, and the broader implications for investors and financial systems. His candid reflections serve as both a cautionary tale and a call to action for better protections against financial fraud.