Sam Bankman-Fried, the founder of the now-bankrupt cryptocurrency exchange FTX, has recently made headlines due to revelations that he explored the possibility of paying former U.S. President Donald Trump to abstain from running for re-election in 2020. This startling revelation comes from an excerpt from author Michael Lewis’ book titled “Going Infinite: The Rise and Fall of a New Tycoon,” which was published in The Washington Post. Bankman-Fried, who is currently facing fraud charges and a high-profile trial, has become a prominent figure in the cryptocurrency industry.
The story begins with Sam Bankman-Fried, a young entrepreneur who rose to prominence in the world of cryptocurrencies. He founded the cryptocurrency exchange FTX, which quickly gained a reputation for innovation and high trading volumes. Bankman-Fried’s success in the crypto space made him a billionaire and a well-known figure in the financial industry.
However, Bankman-Fried’s fortunes took a sharp turn when FTX faced financial troubles and eventually filed for bankruptcy. The collapse of the cryptocurrency exchange shocked the markets and raised questions about the security and reliability of crypto platforms. It also tarnished Bankman-Fried’s reputation as a legitimate operator in an industry often associated with scams and fraudulent schemes.
As if the bankruptcy of FTX were not enough, Bankman-Fried found himself entangled in a legal battle. Federal prosecutors accused him of embezzling billions of dollars from FTX customers over the years. The charges allege that he used customer funds to prop up his hedge fund, Alameda Research, purchase luxury properties, and make substantial political donations.
The trial, which is scheduled to commence on October 4, has garnered significant attention from the cryptocurrency community and beyond. Bankman-Fried faces seven counts of fraud and conspiracy, all of which he has vehemently denied. While he has acknowledged shortcomings in risk management, he maintains that he did not steal customer funds. His defense team has signaled their intention to argue that FTX’s treatment of customer funds was proper and that other individuals at FTX and Alameda bear the primary responsibility for their failure.
The trial is expected to last up to six weeks and will feature testimony from former members of Sam Bankman-Fried’s inner circle. These individuals have already pleaded guilty to fraud charges and agreed to cooperate with the Manhattan U.S. Attorney’s office, which further complicates Bankman-Fried’s legal predicament.
Amid these legal challenges and the looming trial, the revelation that Bankman-Fried explored the idea of paying Donald Trump not to run for re-election in 2020 adds another layer of intrigue to his story. According to the book excerpt, Bankman-Fried’s team had established a back channel to the Trump operation and learned that Trump might be open to stepping aside for a substantial sum, estimated at $5 billion.
It’s worth noting that the book excerpt does not provide detailed information about why Bankman-Fried did not pursue these plans or whether any negotiations with Trump actually took place. The motivations behind such a proposal remain a subject of speculation.
In the cryptocurrency industry, where innovation and disruption often go hand in hand with regulatory scrutiny and legal challenges, Bankman-Fried’s case stands as one of the most high-profile examples of a crypto entrepreneur facing significant legal and reputational consequences. As the trial unfolds, the cryptocurrency community will closely watch the outcome and its potential implications for the broader industry.
