The Morning Call (Sunday)

Book evolves as billionair­e’s empire burns

Author who began shadowing FTX founder before arrest given front-row seat to drama

- By Alexandra Alter

Michael Lewis wasn’t planning to write a book about cryptocurr­ency. He stumbled into the subject in fall 2021, when a friend who was planning to do business with FTX — one of the world’s largest cryptocurr­ency exchanges — asked Lewis, as a favor, to check out its young founder, Sam BankmanFri­ed.

A couple of weeks later, Lewis met with BankmanFri­ed for the first time.

The pair took a hike in the hills near Lewis’ home in Berkeley, California, and Lewis was enthralled by the eccentric young man with untamed hair who was worth tens of billions of dollars and was sought after by powerful investors and politician­s.

“After a couple of hours, I said, I don’t know what’s going to happen to you, but I just want to watch,” Lewis recalled.

Lewis didn’t realize it at the time, but he had secured a front-row seat to a sprawling scandal with huge financial, political and legal implicatio­ns.

FTX has imploded in a spectacula­r fashion: Federal prosecutor­s have brought an array of charges against Bankman-Fried, accusing him of money laundering, bribery and orchestrat­ing a fraudulent scheme to misappropr­iate billions of dollars of customer money. (He has pleaded not guilty.) When Bankman-Fried was arrested in the Bahamas in

December, Lewis was there and had been shadowing him for roughly a year.

Lewis has written about financial debacles before, in books exploring the subprime mortgages that blew up the U.S. economy (“The Big Short”); the risky world of high frequency trading (“Flash Boys”); and how the 2008 financial crisis ricocheted around the world and destabiliz­ed the economies of places like Iceland, Ireland, Greece and Germany (“Boomerang”).

But the story of how Bankman-Fried rose to become one of the world’s youngest billionair­es, then saw his empire crumble, presented new challenges for Lewis. “It’s the first time I’ve had a protagonis­t who the reader won’t trust or who they will come to the story with lots of baggage about,” he said.

Earlier this year from the Bahamas, where he was reporting, Lewis spoke about his upcoming book on Bankman-Fried, “Going Infinite: The Rise and Fall of a New Tycoon,” which Norton will release on

Oct. 3.

This interview with Lewis has been edited for clarity and length.

Q: So what are you doing in the Bahamas? A:

It’s a mopping up operation for the end of the book. There are three or four people who are very relevant to this story who said, six months ago, come back in six months, and we can have a free and frank

conversati­on. Since they arrested Sam, I’ve been back three or four times, and it gets better and better because everyone gets looser and looser.

Q: You were following him closely before his legal troubles started. When did you first get the sense that his business was in trouble and possibly fraudulent? A:

I would rather not answer that question. I want the reader to experience surprise when reading it. My own experience will be part of the surprise. In October, there’s probably going to be a trial, and the two sides are each going to take a bunch of facts and tell completely different stories. I think I can tell a story that’s a better story than either side, that includes all the facts and will put the reader in a position of being the juror.

Q: When he was arrested, did you worry that it might blow up your book or make it better? A:

I hate to say this. It’s horrible. It does not reflect well on me as a human being, but my first thought was, “Oh my God” — it was like a lock clicking

into place — “now I have the story.” It didn’t occur to me for a moment that it would blow up the book. I did think, just how messy is this going to get, as the writer, because I’d been so involved. Nobody watched this the way I did, so, was I going to be dragged into this in some way? But I’ve been allowed to do my job, and it’s been one of the most exciting creative experience­s I’ve ever had.

Q: You’ve continued to visit Bankman-Fried. How has his legal situation affected your access to him, and do you feel he’s more guarded in his conversati­ons with you? A:

He’s the ideal subject. He’s locked up in his (parents’ Palo Alto, California) house an hour from my house with an ankle monitor. He can’t go anywhere. It’s unbelievab­ly convenient, as long as they keep him there. So, as long as

he welcomes me into the house, it’s fine. I’ve been seeing him roughly every two weeks. (Note: A judge revoked Bankman-Fried’s bail on Aug. 11, and the FTX founder was sent to jail.)

Q: How did it affect the nature of your conversati­ons with him, after he was charged with fraud. Did it change your feelings about what he’s telling you and how truthful he is being? A:

I’m not going to say any more than this, but

I’m going to say that the conversati­ons now are no different than they were before. They were rich and interestin­g before, and they’re rich and interestin­g now. The nature of the conversati­on hasn’t changed. They’re longer actually. Instead of talking to him for 45 minutes because that’s all he had, I’m now talking to him for four hours.

 ?? ERIKA P. RODRIGUEZ/THE NEW YORK TIMES ?? Author Michael Lewis, from right, speaks in April 2022 with Katie Haun, the CEO of Haun Ventures, and Sam Bankman-Fried, the founder of FTX, at the Crypto Bahamas conference in Nassau.
ERIKA P. RODRIGUEZ/THE NEW YORK TIMES Author Michael Lewis, from right, speaks in April 2022 with Katie Haun, the CEO of Haun Ventures, and Sam Bankman-Fried, the founder of FTX, at the Crypto Bahamas conference in Nassau.
 ?? ?? ‘GOING INFINITE’ By Michael Lewis;
W.W. Norton & Company, 288 pages, $30, coming Oct. 3.
‘GOING INFINITE’ By Michael Lewis; W.W. Norton & Company, 288 pages, $30, coming Oct. 3.

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