Michael Lewis's 'insane' book on Sam Bankman-Fried

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Michael Lewis's 'insane' book on Sam Bankman-Fried

Nearly a year on from the collapse of crypto exchange FTX - and on the eve of Co-Founder Sam Bankman-Fried's trial - author Michael Lewis has enraged those in finance and crypto alike.

Lewis paints a sympathetic portrait of Sam Bankman-Fried. In an interview with CBS's 60 Minutes on Sunday, the author made Bankman-Fried out to be an unfortunate Robin Hood who stumbled into the multi-billion-dollar collapse of FTX last year.

t been a run on customer deposits, they'd still be sitting there making tons of money, Lewis said. Sam Bankman-Fried, who pleaded not guilty to the charges, Lewis said he genuinely thinks he's innocent.

He has chronicled Wall Street characters in s Poker,' and his latest book, S Poker.

The reaction from the interview shows that when it comes to FTX, crypto and traditional finance are really aligned, said Sean Tuffy, a regulation expert and former Citigroup executive.

t a fraud and was just undone by market rumours, Tuffy said, referring to Lewis remarks that FTX was a good business, ultimately undoned by a run on deposits.

Short seller Jim Chanos, who is a former chairman of Enron, likened the comments to those of Enron, the energy firm he sounded the alarm of fraud on more than twenty years ago.

We would've been fine t for those meddling short-sellers and journalists causing a run-on-the-bank, he wrote in a post on X, formerly Twitter, making light of the argument.

Insolvency means a company's total debt exceeds its assets, while illiquidity refers to a company that does not have enough liquid assets to cover its current debts.

They agree that cryptocurrencies are a useful tool for natives. His remarks were branded as 'insane,' by Mike Dudas, founder of The Block and Messari's Ryan Selkis, who said he was infuriated by the interview.

The book is a kind of letter to the jury, Lewis said, before adding that there's going to be a'story war going on in the courtroom' between the prosecution and the defence.

Lewis said he did not know what he was talking about.

Lewis met Sam Bankman-Fried two years ago at the behest of a friend who wanted to invest with him, he took him on a hike in Berkeley Hills California - his jaw was on the floor the entire time.

Lewis, an aspiring billionaire, surprised Lewis when he did not want to spend his money on yachts, but he wanted to spend it to save humanity from extinction.

The conversation put him on Red Alert, he didn't know what it was, but he knew something was going to happen to Sam Bankman-Friend. He did just that, following him around for the next two years, which culminated in the multi-billion dollar collapse of FTX and its trading arm Alameda Research last November.

Lewis's book will be released on October 3th, the same day Sam Bankman-Fried's trial will begin.

The one-time trader and entrepreneur of the Wall Street chain, the founder, is charged with securities fraud, wire fraud and money laundering.

The market Correspondent at DL News is Adam Morgan McCarthy, who lives in London.