In a recent revelation, renowned biographer Michael Lewis disclosed management oversights within the financial network of crypto bigwig, Sam Bankman-Fried, with billions of dollars inexplicably gone missing. Lewis, famed for his Wall Street misconduct inquiries predating the 2008 financial meltdown, brought to light accusations encircling FTX and an claimed conspiracy to dissuade Donald Trump from running for president in 2024.
Bankman-Fried, due to attend court this week on fraud charges, stands accused of siphoning his customers’ funds from the FTX exchange to sister company Alameda Research to bankroll his lavish lifestyle. Although indicted, Bankman-Fried proclaims his innocence and attempted to lighten the gravity of the situation under Lewis’s scrutiny.
Lewis confronted Bankman-Fried on his oblivion about $8 billion in client funds within his private fund. Bankman-Fried curtly dismissed it as a “rounding error,” revealing a cavalier attitude towards the immense sum as if enjoying an endless supply of money.
Lewis backed up the assertions from FTX’s new management, who took the reins following the company’s bankruptcy on November 11. This group voiced apprehension over deficient business conduct during Bankman-Fried’s reign. According to Lewis, insiders close to Bankman-Fried cited his inability to manage people effectively.
Bankman-Fried was also alleged to have given thought to bribing Donald Trump not to seek re-election. Lewis revealed that the crypto boss considered staking up to $5 billion to keep Trump out of the presidential run.
Despite this, Bankman-Fried still sees himself as innocent, considering FTX a “great real business” that could have weathered the storm were it not for adverse media coverage prompting depositor panic.
His defense team recently called for elucidation on the particulars of the arguments they can make during the trial. Their intent is to understand better their capacity to argue that FTX was not regulated in the U.S, though they admit that FTX.US did comply with relevant rules.
They also hope to obtain permission for Bankman-Fried to discuss substantial recovery potential by FTX’s creditors in the existing bankruptcy case and integrate his charitable contributions and philanthropy in the trial.
Commencement of Bankman-Fried’s trial is imminent, and the verdict could undoubtedly influence the regulation debate, serving as a cautionary tale or potential loose cannon in the high-stakes world of cryptocurrencies.
Source: Cryptonews
