Michael Lewis's 'Spot' book on Sam Bankman-Fried' on trial

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Michael Lewis's 'Spot' book on Sam Bankman-Fried' on trial

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.

In his portrait, Lewis depicted a sympathetic portrait of Sam Bankman-Fried. In an interview with CBS' 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, genuinely thinks he's innocent, Lewis said.

Lewis chronicles Wall Street characters in s Poker and his latest book, 'Spot,' is published.

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

''T a fraud and was just undone by market rumours, 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 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 if we meddling short sellers and journalists causing a run-on-the-bank, Chanos said in a post on X, formerly Twitter, making light of the argument.

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

They are confident that the natives of the cryptocurrency are right. He was branded a 'insane' by Mike Dudas, founder of The Block, and Messari's Ryan Selkis said he was infuriated by the interview.

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

Lewis said he would continue to work to make the most impact possible in the world, not just in the immediate future.

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

Lewis was stunned by the newly minted billionaire, he had no interest in splurging his money on yachts, he wanted to'spend it to save humanity from extinction', Lewis said.

He didn't know what it was, but he knew that 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 published on October 3, the same day Sam Bankman-Fried's trial will begin.

The one-time Wall Street trader and crypto founder's charges include securities fraud, wire fraud and money laundering.

Adam Morgan McCarthy, London's market Correspondent at DL News, is the Editor-in-Chief of the Markets section of DL News.