The Man Who Played an Idiot and Turned Out to Be Right: Larry David's FTX Reckoning

Comedian Larry David has become an unexpected cautionary tale in the cryptocurrency saga, and he’s fully aware of his role in it. When reflecting on his infamous Super Bowl advertisement for Sam Bankman-Fried’s FTX exchange, David didn’t shy away from self-criticism. “I acted like an idiot,” he admitted in conversations with the press, describing how he sought advice from crypto-savvy friends before committing to the commercial. Those consultants assured him it was legitimate, and David took their word for it—a decision he now views with considerable irony.

The 2022 Super Bowl spot featured David in a comedic segment where he portrayed a skeptic dismissing historical innovations. The wheel? “I don’t think so.” The fork? The toilet? Coffee? All rejected by the curmudgeonly character. When Bankman-Fried entered the commercial to pitch FTX as “a safe and easy way to get into crypto,” David’s character delivered the punchline: “I don’t think so, and I’m never wrong about this stuff. Never.” A text appeared on screen declaring “DON’T BE LIKE LARRY,” inviting viewers to embrace cryptocurrency without his fictional hesitation.

How Sarcasm Became Prophecy

What began as comedic satire transformed into uncomfortable reality. Just months after the Super Bowl aired, FTX imploded spectacularly. In November 2022, as the exchange hemorrhaged funds, customers found themselves unable to access their money. The bankruptcy filing that followed froze assets and left thousands of investors stranded. By November 2023, Bankman-Fried faced conviction for stealing billions of dollars from users—a shocking reversal that vindicated David’s on-screen skepticism in ways no one anticipated.

The cruelest irony? The character who played an idiot for dismissing the platform turned out to have the right instinct all along. “The sarcastic version of me had some truth to it,” David reflected, acknowledging that his scripted pessimism had inadvertently predicted the collapse.

The Personal Cost of Celebrity Endorsement

Beyond the symbolic embarrassment, David experienced direct financial consequences. “Part of my salary was in crypto,” he disclosed to the Associated Press, revealing that he lost substantial money from his participation. This wasn’t merely a reputation issue—it was a wallet issue.

Recent developments have offered some relief. The FTX bankruptcy estate announced in January 2024 that it expects to fully repay customers, though the timeline and extent of recovery remain uncertain. Whether this salvages David’s losses is unclear, but it underscores a broader lesson about celebrity endorsements in volatile industries.

A Lesson About Playing the Idiot

David’s experience illuminates the risks of lending one’s name to emerging financial platforms, particularly when the endorser’s own expertise lies in comedy rather than cryptocurrency. He consulted advisors, did his due diligence by asking questions, yet still found himself on the wrong side of history—not because he was foolish, but because his trusted sources were misinformed or, in hindsight, negligent.

The comedian’s willingness to acknowledge his mistake has earned him unexpected credibility. In an industry often dominated by zealous advocates and overconfident promoters, a public figure willing to say “I acted like an idiot” stands out. Whether this redemption extends to his bank account depends on how aggressively the bankruptcy estate pursues its repayment promises and whether David pursued any insurance or legal remedies for his losses.