Author and speaker, Michael Lewis, catches up with Lidia Jean to discuss the trial of Sam Bankman-Fried. They explore the courtroom dynamics, Adam's likability, Sam's nonchalant reaction to their portrayal in the book, and reflect on an unexpected conversation.
Privileges given to Alameda Research on the FTX platform, including the ability to go into negative balance and an unlimited line of credit, raise concerns of dishonesty and conflicts of interest.
Sam Bankman-Fried's calculated and analytical approach towards the book about him suggests that its impact may be more on public perception than on his legal judgment.
Deep dives
Testimonies from Gary and Adam reveal privileges and code changes
During the trial, two key witnesses, Gary and Adam, testified about the privileges given to Alameda Research on the FTX platform. These privileges included the ability to go into negative balance, an unlimited line of credit, faster order placement, and deposits of US dollars going to Alameda accounts. Gary revealed that these privileges were added to the code on Sam's instructions, and he acknowledged that FTX customer money was used to repay borrows. Adam, on the other hand, expressed concerns about the $8 billion owed by Alameda to FTX, which Sam dismissed, saying they were "bulletproof" last year but uncertain now. Adam's testimony shed light on conflicts of interest between Alameda and FTX, raising questions about dishonesty and omission in their dealings.
Sam's indifference to the book about him
Although Sam had not read the book, Michael Lewis discussed his portrayal and anticipated Sam's reaction. Lewis remarked that Sam's response to the book might not be emotional but rather calculated. The book may not significantly affect Sam's legal judgment but could potentially impact the social judgment of his parents, helping people understand the context and dynamics of their family. Lewis expected Sam to approach it analytically, considering the book's potential implications and its effect on public perception.
Observations from the courtroom
Lydia Jean, the court reporter, shared her experiences inside the courtroom. She described the process of entering the court, the seating arrangements, and the presence of court illustrators. Lydia also noted that Sam's back was mostly facing the audience, making it difficult to see his face, but the faces of some jurors and witnesses were visible. She mentioned observing an uncomfortable and reserved demeanor from Gary during his testimony, while Adam appeared more vibrant and genuine. Lydia expressed her intrigue about the forthcoming court revelations and the potential impact on her understanding of the case.
Week 1 of Sam Bankman-Fried’s trial is in the books. The jury is seated, opening statements have been given, and witnesses are taking the stand. Lidia Jean has been in court, and Michael has been on book tour. In this episode they catch each other up. Michael wants to know what it’s like inside the courtroom, and Lidia Jean is curious about what new information Michael is learning.
This conversation was recorded on October 7.
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