Words That Sparked Fire
In a recent interview on the TV show ’60 Minutes’, author Michael Lewis discussed his new book “Going Infinite” which focuses on Sam Bankman-Fried. Lewis’s statements during the interview caused a stir within the cryptocurrency community.
FTX Fraud Trial Begins
The trial for the FTX fraud case is set to begin today, October 3rd. People around the world are eagerly waiting to hear the arguments and counter-arguments presented by both parties.
During his interview on ’60 Minutes’, Michael Lewis mentioned that two stories will be presented in court. One story accuses Bankman-Fried of fraud, while the other presents him as innocent.
There have been allegations from the public and experts that FTX operated as a Ponzi scheme. However, Lewis’s response to this was surprising.
Lewis’s Response to Ponzi Scheme Allegations
In his interview, Lewis stated, “This isn’t a Ponzi scheme… They had a great real business.” He explained that unlike a traditional Ponzi scheme where money coming in is used to pay off existing investors, FTX had a legitimate business model. The criticism and run on customer deposits were what led to their financial difficulties.
This statement by Lewis referred to Binance’s withdrawal from their strategic collaboration with FTX, which ultimately contributed to FTX filing for bankruptcy.
Binance’s Response
John Deaton, lawyer for Ripple’s XRP holders, expressed his disagreement with Lewis’s perspective. He referred to Lewis as an “expert” in a tweet and criticized his claim that criticizing FTX caused the run on consumer deposits.
Binance founder Changpeng Zhao (CZ) also commented on Deaton’s tweet, suggesting that Lewis may have wanted others to believe his viewpoint.
What’s Next?
The conversation between Deaton and CZ highlights the complexities surrounding the FTX catastrophe. Blaming Binance alone for the run on client deposits oversimplifies the situation and ignores other potential contributing factors. It also raises questions about the credibility of an “expert” who makes such claims on a prominent platform like “60 Minutes.”
Hot Take: Misunderstanding or Manipulation?
The controversy surrounding Michael Lewis’s statements on ’60 Minutes’ has ignited a debate within the cryptocurrency community. While some argue that Lewis misunderstood the dynamics of FTX’s downfall, others believe there may be an agenda at play to shift blame onto Binance. Regardless, this episode highlights the need for accurate and unbiased information when discussing complex financial matters.
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