Former Wall Street analyst lays out FTX fraud claims

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Former Wall Street analyst lays out FTX fraud claims

As Bankman-Fried prepares to stand trial on fraud charges Tuesday, Lewis, who has previously chronicled the Wall Street misdealings that led to the 2008 financial crisis, set out allegations of management failures at FTX - and a plot to pay off Donald Trump to stand down from his 2024 U.S. presidential ambitions.

The Department of Justice has accused Bankman-Fried of using customer funds from FTX exchange to Alameda Research, where they were used to fund his lavish lifestyle. Bankman-Fried has pleaded not guilty and appears to have downplayed the incident to Lewis.

Lewis also appeared to support claims made by FTX's new leadership, which took over on Nov. 11 when the company filed for bankruptcy, of poor corporate governance under Bankman-Fried's reign.

Sam is just not built to manage people, Lewis said, adding that Bankman-Fried did not know the names of other members of the board of directors and appears to have seen their role as mere rubber-stamping.

Bankman-Fried had also floated paying as much as $5 billion to Donald Trump to keep him from running for president again before FTX collapsed, Lewis said.

Bankman-Fried genuinely thinks he's innocent, Lewis said, adding that FTX is a 'great real business' that could have survived if bad publicity hadn't led to a run on deposits.