This week's podcast covers the drama surrounding Sam Bankman-Fried, including insights into Nishad Singh's testimony, the mystery surrounding the orchestration, the strictness of the courtroom, and a discussion about ethics and the greater good.
Nishad Singh's limited understanding of finance led to his cynicism about the laws around money and his realization that law is not always what is written.
Ken Sun, the general counsel of FTX, testified that Sam repeatedly assured him that customer funds were safe and separated, but was shocked to see the balance sheet showing Alameda in billions of dollars in the red.
Deep dives
Nishad Singh's Testimony
During Nishad Singh's testimony, he revealed that he had a limited understanding of finance when he joined Alameda Research. He learned about the world of money through Alameda Research and FTX. He talked about his realization that the law is not always what is written, but what people care to enforce, leading to his cynicism about the laws around money. Nishad also discussed Sam's lack of emotional intelligence and how it affected the company. Additionally, he acted as a translator between Gary and Sam, helping to bridge the communication gap. Despite spending time with Nishad, it was suggested that he might not have been aware of the risks they were taking with customer money.
General Counsel's Testimony
Ken Sun, the general counsel of FTX, testified that he had no knowledge of Alameda using FTX customer funds and that he would not have approved it. He emphasized that Sam repeatedly assured him that customer funds were safe and separated, which he then relayed to others. However, Ken Sun shared his shock upon seeing a balance sheet that showed Alameda was billions of dollars in the red and that Sam approached him asking for a legal explanation to make it not a crime. The defense highlighted that Ken Sun testified under a non-prosecution agreement, casting doubt on his credibility.
Importance of Prosecution's Storytelling
The prosecution has successfully presented a clear narrative throughout the trial, emphasizing Sam's dishonesty. They highlighted how Sam repeatedly lied about FTX's safety to employees, customers, and investors. Meanwhile, the defense has mainly focused on poking holes in witnesses' testimonies without providing their own cohesive story. As the trial nears the defense's presentation, the anticipation builds for Sam's testimony, which may offer further clarity on the case.
Another week come and gone, and like everything SBF, it wasn’t without a healthy dose of drama. Lidia Jean Kott catches Michael Lewis and Jacob Goldstein up on all that has gone down.
This conversation was recorded on the evening of October 19.
Questions for Michael? Submit them by clicking the link in our show notes or visiting atrpodcast.com
To access bonus episodes, and to listen to all of our coverage ad-free, sign up for Pushkin plus on the Against The Rules show page in Apple Podcasts or at Pushkin.fm/plus.