Renowned biographer Michael Lewis has unveiled mismanagement allegations against crypto tycoon Sam Bankman-Fried, who is currently facing fraud charges. Lewis, known for chronicling Wall Street’s past misdeeds, exposed a series of financial discrepancies within Bankman-Fried’s empire, casting a shadow of doubt on the cryptocurrency industry.
Sam Bankman-Fried’s Billion-Dollar Rounding Error
The Department of Justice has accused Bankman-Fried of diverting customer funds from the FTX exchange to his sister company, Alameda Research, to fund his extravagant lifestyle. Despite facing these allegations, Bankman-Fried remains defiant, insisting on his innocence. When questioned about the missing $8 billion in customer funds, he shockingly dismissed it as a mere “rounding error.”
According to Michael Lewis, Bankman-Fried claimed, “When it went in there, it was a rounding error… It felt like we had infinity dollars in there… I wasn’t even thinking about it.” This revelation leaves many questioning how such a colossal sum could be regarded so casually by someone responsible for safeguarding investor assets.
Lewis’s investigation also shed light on the flawed corporate governance during Bankman-Fried’s tenure at FTX. Even members of the company, including close associates, allegedly questioned his ability to manage effectively.
Lewis quoted insiders as saying, “Sam is just not built to manage people.” Furthermore, Bankman-Fried’s lack of familiarity with the board of directors raised concerns, with him apparently viewing their roles as mere rubber-stamping exercises.
Lewis also unveiled Bankman-Fried’s rumored attempt to pay former President Donald Trump a jaw-dropping $5 billion to dissuade him from running for president again in 2024. This revelation has added a political dimension to the crypto tycoon’s already tumultuous story.
The allegations against Sam Bankman-Fried have sent shockwaves through the cryptocurrency world, raising concerns about the industry’s lack of regulation and oversight.