The Rise and Fall of Crypto Billionaire Sam Bankman-Fried (with Writer Michael Lewis)
Oct 29, 2023
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Writer Michael Lewis discusses the rise and fall of crypto billionaire Sam Bankman-Fried in his new book. They explore Bankman-Fried's criminal fraud case and his belief in effective altruism. Lewis reflects on the ten-day collapse of FTX and his personal connection to Sam's parents. He also discusses his own journalistic tendencies and writing the book amidst personal tragedy.
Sam Bankman-Freed's lack of empathy and shifting probabilistic approach led to the downfall of his empire FTX.
Michael Lewis reflects on the challenges of writing 'Going Infinite' in the aftermath of personal tragedy.
The podcast highlights the societal inclination towards punishment and explores the idea of understanding the circumstances surrounding a crime for a comprehensive evaluation of moral responsibility.
Deep dives
Summary of the Podcast Episode
This podcast episode features an interview with writer and podcaster, Michael Lewis, who discusses his latest book 'Going Infinite' about the rise and fall of FTX crypto mogul, Sam Bankman-Freed. The book explores Bankman-Freed's journey from being listed as the richest person under 30 to facing criminal charges for alleged money laundering and fraud. Lewis reflects on the mixed reviews the book has received and delves into Sam's belief in effective altruism and his plans to use his wealth for the greater good. The interview also touches on Lewis's own journalistic philosophy and personal experiences while writing the book.
Sam Bankman-Freed's Chaotic Empire
Sam Bankman-Freed, the FTX crypto mogul, went from being the richest person under 30 to facing criminal charges for money laundering and fraud. His empire, FTX, collapsed, leading to billions in losses for customers and investors. Michael Lewis, in his book 'Going Infinite,' describes the chaotic environment of FTX, with its unclear organization structure, lack of management, and misplaced funds. Despite being heralded as a genius in the crypto world, Bankman-Freed's lack of empathy and shifting probabilistic approach to life created a volatile situation that ultimately led to the downfall of his empire.
The Personal and Ethical Dilemmas of Writing 'Going Infinite'
Michael Lewis reflects on the challenges of writing 'Going Infinite' in the aftermath of personal tragedy, having lost his own daughter. Lewis grapples with the ethical implications of exploring the lives affected by Sam Bankman-Freed’s actions, including the employees who lost their jobs and reputations. He discusses his role as an observer, detached from the suffering of others, while still remaining deeply interested in the story's outcome. Lewis highlights the tension between journalistic objectivity and empathy, ultimately acknowledging the complex emotional landscape he navigated while writing the book.
The Complexity of Moral Responsibility
The podcast discusses how people's views of moral responsibility become more nuanced when they have more information about the context of the crime and the person who committed it. The speaker highlights the societal inclination towards punishment and explores the idea that understanding the circumstances surrounding a crime can lead to a more comprehensive evaluation of moral responsibility.
The Rise and Fall of FTX and Sam Bankman-Fried
The podcast delves into the story of Sam Bankman-Fried and the rise and fall of FTX. It explores how the company's oversight and risk management failures led to its bankruptcy. The speaker reflects on the implications of Bankman-Fried's rapid wealth accumulation and the public's trust in individuals who generate enormous wealth. The upcoming trial and potential sentencing of Bankman-Fried is also discussed.
Upon taking a walk with crypto billionaire Sam Bankman-Fried, writer Michael Lewis had a sense that there might be a story here. In the intervening two years, that story has taken a series of twists and turns, resulting in Lewis’ new book Going Infinite: The Rise and Fall of a New Tycoon.
At the top, we walk through the latest events in Bankman-Fried’s Manhattan trial (7:27), the subject at the center of this winding story (12:06), and why Lewis was first interested in observing him (17:50). Then, he unpacks Bankman-Fried’s belief in effective altruism (20:00), his probabilistic approach to trading (23:50), and how his Stanford law professor parents shaped his thinking (27:36).
On the back-half, we discuss the ten-day period of FTX’s collapse (38:00), the scene in the Bahamas as Bankman-Fried filed for bankruptcy (47:10), and why Lewis felt a kinship with Sam’s parents in that moment (50:32). To close, Michael reflects on his own journalistic tendencies (55:10) and how he managed to write this book in the aftermath of great personal tragedy (1:06:50).
For thoughts, reflections, and guest suggestions, drop me a line at sf@talkeasypod.com.