Biographer Michael Lewis exposes management failures and missing billions at FTX | Taza Khabre

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biographer Michael Lewis has exposed management failures and the alarming disappearance of billions of dollars within the crypto tycoon’s financial empire Sam Bankman-Fried.

Sharing your findings CBS’s 60 MinutesLewis, known for his investigations into the Wall Street misconduct that triggered the 2008 financial crisis, delved into the allegations surrounding FTX and an alleged plot to bribe Donald Trump to abandon his 2024 presidential ambitions.

Bankman-Fried, who will face trial this week on fraud charges, has been accused by the Department of Justice of transferring funds from customers of the FTX exchange to sister company Alameda Research, using them to fund his style extravagant life

Despite these accusations, Bankman-Fried has pleaded not guilty and appeared to downplay the seriousness of the situation when questioned by Lewis.

According to Lewis, he confronted Bankman-Fried over his lack of awareness of the presence of $8 billion in client funds within his private fund.

In response, Bankman-Fried referred to it as a simple “rounding error”, stating that at the time, the amount seemed unimportant to her and that she was not even paying attention to it, as if they had infinite funds in its disposition.

Lewis also backed the claims of FTX’s new leadership, which took over after the company filed for bankruptcy on Nov. 11.

They raised concerns about poor corporate governance during Bankman-Fried’s tenure.

“Even his best friends, within the company, said, ‘Sam is not cut out to manage people,'” Lewis said.

Bankman-Fried considered bribing Donald Trump not to run for president

Lewis revealed that Bankman-Fried, before the collapse of FTX, even contemplated offering up to $5 billion to Donald Trump not to run for another presidential campaign.

“Sam is thinking, ‘We could pay Donald Trump not to run for president. Like, how much would it take?'” Lewis said.

“He got an answer. It was floating around — there was a number that was being thrown around. And the number that was being thrown around when I was talking to Sam about it was $5 billion. Sam wasn’t sure that number came directly from Trump.”

Lewis concluded by noting that Bankman-Fried genuinely believes in his innocence, describing FTX as a “real big business” that could have weathered the storm if not for the damaging impact of negative publicity that caused panic among depositors .

The defense team representing Bankman-Fried recently asked the US judge presiding over the case for clarity on the specific arguments they can present at trial.

Their goal is to gain a better understanding of their ability to argue that FTX was not regulated in the United States, even though they acknowledge that FTX.US adhered to the applicable rules, according to a Monday presentation.

They are also seeking permission for the disgraced crypto chief to discuss the potential for substantial recoveries from FTX’s creditors in the ongoing bankruptcy case, as well as the inclusion of his charitable donations and philanthropic activities in the judgment.

Meanwhile, the Bankman-Fried trial is scheduled to begin Tuesday at 9:30 a.m. ET, with jury selection.

Prosecutors have indicated they expect that process to conclude within a day, suggesting opening arguments could begin on Oct. 4.

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