In the article titled “Going Infinite” by Michael Lewis, the author explores the rise and fall of cryptocurrency exchange FTX and its founder Sam Bankman-Fried. Lewis recounts a conversation with Bankman-Fried in which he claimed to have explored the possibility of paying Donald Trump not to run for president in 2024 for $5 billion. Despite this extraordinary claim, Lewis does not delve further into the matter. The article raises questions about whether Bankman-Fried truly believed he could bring down Trump and what actually happened at FTX.
Lewis portrays Bankman-Fried as a unique individual with a detached childhood and a lack of connection to his peers. As he grew older, Bankman-Fried became interested in cryptocurrencies due to his interpretation of effective altruism, a movement that measures a person’s worth by the net good they accomplish in their lives. Bankman-Fried founded Alameda Research, which exploited price discrepancies in different cryptocurrency markets. Lewis argues that Alameda Research and FTX were heavily influenced by effective altruism, leading to a lack of attention to the company’s poor management.
The collapse of FTX has led to skepticism toward cryptocurrency, with many viewing it as a scam. Lewis suggests that the lack of financial controls at FTX should have been a red flag for employees, and that the missing funds that led to FTX’s bankruptcy may still be found. However, Bankman-Fried’s insistence on going to trial for fraud and money laundering raises doubts about whether the money will ever be recovered. In conclusion, while Lewis’s book provides a thorough look at Bankman-Fried’s story and personality, it lacks deeper financial analysis and a comprehensive understanding of cryptocurrency.
