He had written the famous book “The Big Short”, to tell the real estate and credits bubble of 2007. Michael Lewis is a journalist and writer, known for his extensive coverage of political, economic and financial topics. He had everything to be the best to tell the scandal of FTX, the cryptocurrency exchange platform that has just gone bankrupt. And Saturday, to everyone’s surprisehe came out of the silence.
Rather than announcing he was going to get to work on multi-pot FTX boss Sam Bankman-Fried, Michael Lewis confessed he was coming already spent 6 months with the former multi-billionaire. The intuition was correct: the collapse of cryptocurrencies will be its main angle. Already then, he was planning to write about the rivalry between FTX and Binance, while keeping it secret during his interviews. “I really don’t want to reveal exactly what I’m writing about”he told the FinancialTimes.
The Big Short, Flash Boys and Liar’s Poker writer (Michael Lewis) spent 6 months with @SBF_FTX.
A book is planned. Already then, he wanted to show “what messed up the market structure”. It promises. pic.twitter.com/Jq0TxGzvBQ
— Hadrian Augusto (@HadrianAugusto) November 14, 2022
“What messed up the market structure”
Michael Lewis did not want to break the secret in the aftermath of the fall of FTX. But in an email intercepted by The Ankler, his CAA agent (an American talent agency) gave some details to potential publishers. He states there that “Michael hasn’t written anything yet, but the story has gotten too big to wait”. For him to add that it would be a “surprisingly dramatic end to the book” but that already, before the affair broke out, Michael Lewis compared Sam Bankman-Fried and Changpeng Zhao (Binance) to Luke Skywalker and Darth Vader.
On Twitter in recent days, there were already many who wanted to see a new installment of the film The Big Short arrive. Even Changpeng Zhao, the boss of Binance, defended himself against this parody poster by declaring that he had in no way sought to put FTX in a bad position by reselling his FTTs.
Full disclosure: Binance never shorted FTT. We still have a bag of as we stopped selling FTT after SBF called me. Very expensive call. https://t.co/3A6wyFPGlm
— CZ 🔶 Binance (@cz_binance) November 14, 2022
Already during his interview with the FinancialTimesthe writer announced that his new work was going to be placed like a mix between The Big Short, Flash Boys (about the revolt on Wall Street) and Liar’s Poker (an initiation into the skin of a Wall Street bond salesman in the 80s). He took the opportunity to give the color about the one who was secretly Sam Bankman-Fried: “a truly unusual character”. And about FTX: “you will learn all about crypto and you will understand what messed up the market structure”he announced.
FTX went from a $32 billion valuation to flash bankruptcy, leaving behind the platform thousands of investors in dire straits with their funds unavailable or evaporated. In its accounts, FTX raised fears of a extreme insolvency in the event of a fall in the prices of crypto-currencies, and in particular its native token, the FTT. Last week, his setbacks resulted in rumors of a financial hole of more than 9 billion dollars.
During his six months of investigation with the boss of FTX, Michael Lewis particularly leaned on his childhood, his beginnings on Wall Street (in traditional finance) then on “building his crypto empire”. A dazzling ascent, followed by one of the fastest descents into hell in history, “enough for the release of a new book by Michael Lewis”, added in the mail to the editors his agent. Case to follow.