568. Why Are People So Mad at Michael Lewis?

This podcast episode explores the life and fall of Sam Bankman-Fried, the founder of FTX, through the lens of Michael Lewis's book, Going Infinite. Lewis discusses the effective altruism movement, Bankman-Fried's peculiar interactions with influential individuals, his political meddling, and the inner workings of FTX. The episode also delves into the FTX trial, plea bargaining, and the complexities of the bankruptcy process. Takeaways • Sam Bankman-Fried exhibited questionable behavior, including using customer deposits for political contributions and celebrity marketing, while being involved in the effective altruism movement. • Lewis emphasized the importance of getting to know one's subject and granting access to witness events firsthand. • Bankman-Fried often agreed with everything people said, even if he didn't understand or care, and he used probability-based decision-making instead of fixed principles. • The effective altruism movement aims to maximize the positive impact, leading Bankman-Fried to pursue a lucrative career to generate funds for charitable giving. • Bankman-Fried's political meddling included spending funds in the political arena and exploring the possibility of payments to Donald Trump. • FTX's rapid growth was fueled by a strategy of acquiring licenses, but the company lacked proper financial controls. • The FTX trial showcased incriminating evidence against Bankman-Fried, although he testified and claimed to believe he did nothing wrong. • Plea bargaining is criticized for its potential corruption and the high conviction rates, while the FTX bankruptcy process faces challenges and high costs.