FTX Unveiled: Michael Lewis' Portrayal of Sam Bankman-Fried in 'Going Infinite'
Summary:
Michael Lewis' latest book "Going Infinite: The Rise and Fall of a New Tycoon" offers a favorable account of former FTX CEO, Sam Bankman-Fried (SBF), highlighting his appetite for effective altruism and business dealings. The author largely downplays the emotional and financial havoc wreaked by FTX's bankruptcy in November 2022. Despite some hard-hitting discussions on the philanthropic entrepreneur's lack of basic adulting skills, the narrative finesses SBF's reputation as an adept trader. The story concludes with the peculiar details of a tungsten cube in FTX's Bahamas HQ, leaving readers questioning the reality of the rise and fall of this new tycoon.
While I've yet to delve into Michael Lewis' tome, The Big Short: Inside the Doomsday Machine, it seems improbable that the writer would have empathized with the individuals embroiled in the American housing meltdown of 2008. However, his portrayal of the former FTX CEO, Sam Bankman-Fried (SBF), is rather favorable.
In his book, Going Infinite: The Rise and Fall of a New Tycoon, unveiled on October 3rd, Lewis pulls back the curtain on numerous hitherto unpublicized facts surrounding FTX's fall. Notably, Lewis elaborated on SBF's attempted bid to dissuade former President Donald Trump from seeking office again, and his relationship with Caroline Ellison, former head of Alameda Research, providing an intricate pros-and-cons list concerning their romantic involvement. What is distinct; however, is not just the personal insights into SBF's life, but the bulk of content elucidating how SBF's financial mind works and his dealings with others.
A noteworthy portion of the book is reserved for exploring SBF's impetus for effective altruism, the belief in generating as much wealth as feasible to donate for the betterment of the world. Yet this concept seems not just peripheral, but central to the theme of the book, depicting SBF as the aggregator of altruists inexperienced in the realms of crypto or finance, yet rallied to establish Alameda and FTX. This is juxtaposed against the backdrop of numerous FTX investors losing their life savings when the bubble burst. The financial ruin, and accompanying emotional toll, that the bankruptcy declaration inflicted upon many in November 2022 is largely overlooked.
Just prior to FTX's financial disaster, several news outlets had painted SBF in a flattering light, a potential future catalyst for bridging crypto and conventional finance, and FTX was amassing billions from retail investors. Those unable to withdraw their holdings swiftly following FTX's financial downturn have remained disconnected from their investments for the duration.
Ellison's apparent detachment from the adverse circumstances she left behind, with employees losing not just their livelihood, but credibility and financial security, was highlighted in her casual parting message following FTX's collapse. Things take a turn as Lewis paints a picture of a hard-hitting dialogue between SBF and former FTX COO Constance Wang, deliberating on the human price of the failure. This fleeting change in tone is the exception in a story that largely infantilizes SBF, portraying him as an incredibly adept trader, but failing at basic adult tasks.
The details surrounding FTX's base in the Bahamas, planned around the installation of a pure-tungsten cube are included, and the narrative concludes with Lewis, making an unscheduled discovery and SBF's curt response to the whole situation: "badminton courts".
Upon perusing Going Infinite, it seems unlikely that any legal action would have been taken against the ex-FTX CEO, with the information available in the book alone. The issue may have been chalked up to a mere misunderstanding and settled out of court. Lewis indicates that there was no clear end-point for FTX user funds and suggests that even hedge fund managers remained oblivious of any transgressions up till the point of the exchange's collapse. He concludes that while many people assumed they had grasped the entire narrative, the reality was far from obvious.
Published At
10/9/2023 8:00:00 PM
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