all41author Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
The FTX fraud trial is set to begin today, with two narratives set to be presented in court – he is guilty and he is innocent.
Author Michael Lewis has said in an interview that FTX was not a Ponzi scheme, but rather a “great real business” .
Ripple lawyer John Deaton and Binance founder CZ have both criticized Lewis for his comments.
In a recent episode of the widely watched American TV show ’60 Minutes,’ renowned author Michael Lewis delved into his latest non-fiction work, “Going Infinite,” which sheds light on the life of crypto entrepreneur Sam Bankman-Fried.
During this interview, Lewis’s remarks ignited a heated discussion within the cryptocurrency community. What happened and why is it such a big deal? Read on.
As the trial of the FTX fraud case is about to begin today, 3rd October, the whole world is on edge to listen to the arguments and counter-arguments provided by the two parties.
During his extensive ’60 Minutes’ interview, Michael Lewis outlined the two narratives set to be presented in the courtroom. One side accuses Bankman-Fried of fraudulent activities, while the other portrays him as an innocent party.
Many allegations arose from the common public and experts that the FTX fraud was because of its ‘ponzi scheme’. However, what Lewis said in regards to this was more shocking.
Lewis says in his interview, “This isn’t a Ponzi scheme. When you think of a Ponzi scheme, I don’t know, Bernie Madoff, the problem is– there’s no real business there. The dollar coming in is being used to pay the dollar going out. And in this case, they had– a great real business. If no one had ever cast aspersions on the business, if there hadn’t been a run on customer deposits, they’d still be sitting there making tons of money.”
Also Read: Sam Bankman-Fried’s Trial Begins Tomorrow: What to Expect from the Jury Selection
John Deaton, the lawyer for Ripple’s XRP holders, jumped at the chance to refute this story. Deaton expressed his displeasure with the “expert” in a tweet.
Changpeng Zhao (CZ), the founder of Binance, also commented on John Deaton’s tweet.
He's probably wishing everyone else to be that stupid, but…
Read More: Binance’s CZ Accused of Market Manipulation Against FTX, Lawsuit Filed!
The FTX catastrophe was huge and it isn’t wise to assign blame arbitrarily. Blaming Binance for casting doubts that caused a rush on client deposits oversimplifies the situation and disregards other potential contributing causes. Additionally, it calls into doubt the authority of the “expert,” who made such a claim on a platform as significant as “60 Minutes.”
