SBF and the Missing $8 Billion

I have been listening to Michael Lewis on Sam Bankman-Fried (AKA SBF) on his podcast Against the Rules, but he has left a lot of threads hanging, perhaps because he has a new book coming out on Oct 3 (tomorrow, as I write this), to coincide with the opening of SBF's trial for embezzlement and other crimes. Lewis was writing a book about SBF and FTX when the exchange collapsed in November 2022.

But I also listen to another podcast, called Search Engine with PJ Vogt, and this week's episode asks, where did the missing $8 billion go. First, I thought that was a dumb question, because when something collapses in value, the money doesn't actually go anywhere, value just disappears. But I was wrong, and learned I was wrong from this podcast. 

Second, this podcast does a great job of explaining what SBF did wrong; even The New Yorker article "Inside Sam Bankman-Fried’s Family Bubble" by Sheelah Kolhatkar (in the Oct. 2nd issue, and the only article to include interviews with SBF's parents, who are Stanford law professors) does a poor job of describing what happened and what crimes he's accused of committing. PJ Vogt had a previous podcast in 2022 called Crypto Island and so has covered some of the crypto hype. In this episode of Search Engine, PJ Vogt interviews Zeke Faux who had been covering SBF for a while for Bloomberg, and the episode makes very clear where the money went and what crimes he's accused of.

Third, this is interesting because Zeke Faux (and let me just note as an aside, that this is his real name, even though it means "fake" in French) noted that when Michael Lewis interviewed SBF at a crypto conference in the Bahamas, Lewis just lobbed softball questions and seemed star-struck. Zeke has tweeted:

"I’d heard that Bankman-Fried was going to be the subject of Lewis’s next book. But the author’s questions were so fawning they seemed inappropriate for a journalist."

He raises the question of how gullible Michael Lewis was at the time that SBF and FTX were riding high, and Lewis does come across as giddy and a believer in the clips cited in the podcast. I'm looking forward to reading his book. But I feel I should read Zeke Faux' book first.

Since we are going to be hearing about the SBF trial for a while, it is worth listening to this Search Engine podcast to get a sense of what happened and what the issues are.

Get on Apple podcasts here 

Link from Podcastaddict here

Link to the episode on the Search Engine with PJ Voght website.