Sam Bankman-Fried Considered Paying Donald Trump $5 Billion to Not Run for President, Says Author Michael Lewis
According to best-selling author Michael Lewis, Sam Bankman-Fried, the alleged crypto criminal accused of orchestrating a major financial fraud, contemplated paying Donald Trump $5 billion to prevent him from running for president. In an interview with CBS’s “60 Minutes,” Lewis revealed that Bankman-Fried feared Trump’s potential threat to democracy and wanted to stop his White House campaign in 2024. However, the plan did not progress due to legal uncertainties and Bankman-Fried’s own downfall when his crypto empire collapsed in November 2022.
Bankman-Fried’s Failed Ambition and Legal Troubles
Bankman-Fried’s representative declined to comment on the matter. A Trump campaign spokesperson dismissed Bankman-Fried as a “liar” and accused him of attempting to deceive people. The government has charged Bankman-Fried with wire fraud and money laundering, alleging that he used customer funds for campaign contributions during the 2022 midterm elections. Bankman-Fried has pleaded not guilty to all charges.
The Difference Between Bankman-Fried’s Alleged Crimes and Traditional Ponzi Schemes
Lewis emphasized that Bankman-Fried’s actions were distinct from typical Ponzi schemes perpetrated by high-profile financial criminals like Bernie Madoff. He explained that Bankman-Fried’s business had genuine value and would have continued generating significant profits if it hadn’t faced accusations and a run on customer deposits.
Accusations Against Bankman-Fried: Misuse of Customer Funds
If convicted on various fraud and conspiracy charges, Bankman-Fried could face a potential lifetime prison sentence. Prosecutors allege that he misused billions of dollars in customer funds for personal gain, including luxury real estate purchases and covering losses from his crypto hedge fund, Alameda Research. The government claims that customer cash was transferred to Alameda through direct deposits and a secret backdoor in FTX’s code.
Bankman-Fried’s Lack of Recognition of Customer Funds
Approximately $8 billion of FTX customer money ended up in Alameda Research. Lewis shared Bankman-Fried’s explanation that he initially considered it a minor amount, akin to a rounding error, and didn’t pay much attention to it.
Comparing Bankman-Fried to Elizabeth Holmes
Lewis rejected comparing Bankman-Fried to Elizabeth Holmes, the founder of Theranos currently serving a prison sentence for defrauding investors. He highlighted the difference between providing false medical information that could harm people’s lives versus potentially losing money belonging to crypto speculators.
A Unique Character: Bankman-Fried Playing Video Games During TV Interview
Lewis recounted an anecdote about Bankman-Fried playing video games during his first television interview. This unconventional behavior demonstrated Bankman-Fried’s multitasking abilities as he tried to win the game while being on air.
Hot Take: The Ambitious Plan That Never Materialized
In an attempt to prevent Donald Trump from running for president in 2024, Sam Bankman-Fried allegedly considered paying him $5 billion. However, this plan never came to fruition due to legal uncertainties and Bankman-Fried’s own downfall when his crypto empire collapsed. Although facing various fraud charges and accusations of misusing customer funds, Bankman-Fried’s alleged crimes differ from traditional Ponzi schemes because his business had genuine value. Nonetheless, his actions have raised questions about the ethics and legality of his operations. Bankman-Fried’s unique character, exemplified by playing video games during a TV interview, adds to the intrigue surrounding his case.
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