Biographer Michael Lewis Exposes Management Failings and Missing Billions at FTX

FTX Sam Bankman-Fried
Last updated:
Author
Author
Ruholamin Haqshanas
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Image Source: CBS News

Biographer Michael Lewis has exposed management failures and the alarming disappearance of billions of dollars within the financial empire of crypto tycoon Sam Bankman-Fried

Sharing his findings on CBS’s 60 Minutes, Lewis, known for his investigations into Wall Street misconduct that unraveled the 2008 financial crisis, delved into allegations surrounding FTX and an alleged plot to bribe Donald Trump into abandoning his presidential ambitions in 2024.

Bankman-Fried, who is set to face trial this week on fraud charges, has been accused by the Department of Justice of transferring customer funds from the FTX exchange to sister company Alameda Research, using them to finance his extravagant lifestyle. 

Despite these accusations, Bankman-Fried has pleaded not guilty and appeared to downplay the severity of the situation when questioned by Lewis.

According to Lewis, he confronted Bankman-Fried about his lack of awareness regarding the presence of $8 billion in customer funds within his private fund. 

In response, Bankman-Fried referred to it as a mere “rounding error,” stating that at the time, the amount felt inconsequential and he wasn’t even paying attention to it, as if they had infinite funds at their disposal.

Lewis also supported the claims made by FTX’s new leadership, who took charge after the company filed for bankruptcy on November 11. 

They raised concerns about poor corporate governance during Bankman-Fried’s tenure. 

“Even his best friends, inside the company said, ‘Sam is just not built to manage people,’” Lewis said.

Bankman-Fried Considered Bribing Donald Trump Not to Run for Presidency

Lewis revealed that Bankman-Fried, prior to the collapse of FTX, even contemplated offering up to $5 billion to Donald Trump not to run for another presidential campaign. 

“Sam’s thinking, ‘We could pay Donald Trump not to run for president. Like, how much would it take?'” Lewis said. 

“He did get an answer. He was floated — there was a number that was kicking around. And the number that was kicking around when I was talking to Sam about this was $5 billion. Sam was not sure that number came directly from Trump.”

Lewis concluded by noting that Bankman-Fried genuinely believes in his innocence, describing FTX as a “great real business” that could have weathered the storm if not for the detrimental impact of negative publicity leading to a panic among depositors.

Just recently, the defense team representing Bankman-Fried asked for clarity from the U.S. judge presiding over the case regarding specific arguments they can present during the trial. 

Their goal is to gain a better understanding of their ability to argue that FTX was not regulated in the United States, while acknowledging that FTX.US did adhere to applicable rules, according to a Monday filing.

Additionally, they are seeking permission for the disgraced crypto boss to discuss the potential for substantial recoveries by FTX creditors in the ongoing bankruptcy case, as well as the inclusion of his charitable giving and philanthropic activities in the trial.

Meanwhile, Bankman-Fried’s trial is slated to start on Tuesday at 9:30 a.m. ET, with the selection of the jury. 

Prosecutors have indicated that they anticipate this process to conclude within a day, suggesting that opening arguments could potentially begin as early as October 4.

 

More Articles

Opinions
Opinion: Crypto Has a Trust Problem—Here’s How We Can Fix It
Mona El Isa
Mona El Isa
2025-02-16 18:08:06
Features
Coinbase Just Made Huge Predictions on Crypto’s Future
Connor Sephton
Connor Sephton
2025-02-16 18:03:15
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors