Famous Short-Seller Jim Chanos Criticizes Michael Lewis for Defending SBF
Renowned billionaire short-seller Jim Chanos recently criticized author Michael Lewis for defending FTX founder Sam Bankman-Fried (SBF). In a segment on CBS’s 60 Minutes, Lewis discussed his new book “Going Infinite,” where he defended SBF based on numerous meetings with him. Lewis claimed that FTX is not a Ponzi scheme and would still be profitable if not for a panic-driven run on customer deposits last November.
Chanos, who correctly shorted Enron and is the founder of Kynikos Associates, strongly disagreed with Lewis’s defense. He argued that both FTX and Enron were insolvent, not just illiquid. John Ray III, the current leader of FTX during its restructuring, was also responsible for recovering funds at Enron after its collapse.
Lewis faced criticism from other commentators as well, with many accusing him of misunderstanding Bankman-Fried’s actions. They called his interview on 60 Minutes “unhinged.”
SBF’s Controversial Donations
Lewis also revealed that SBF was allegedly willing to pay former President Donald Trump $5 billion to not run in the next Presidential election. Lewis claimed that these conversations were ongoing when FTX faced its crisis. Bankman-Fried has a history of making generous political donations and was previously charged by the Justice Department for campaign finance violations.
SBF’s trial began on Tuesday, where he faces seven counts of fraud and conspiracy related to his exchange’s downfall. He will face another trial in March 2024 for additional charges including securities fraud and money laundering. If convicted on all charges, Bankman-Fried could potentially serve up to 110 years in prison.
Hot Take: Lewis’s Defense of SBF Faces Backlash
Michael Lewis’s defense of Sam Bankman-Fried has received significant criticism from various sources. Critics argue that Lewis misunderstands the nature of FTX and Bankman-Fried’s actions. The controversy surrounding Bankman-Fried’s alleged donations to politicians, including a rumored payment to Donald Trump, further adds to the skepticism. As Bankman-Fried’s trial unfolds, it remains to be seen how these developments will impact his future and the reputation of FTX.
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