The former CEO of the now-defunct FTX cryptocurrency exchange, Sam Bankman-Fried, who is presently in California under house arrest, has spent a number of hours with “The Big Short” author Michael Lewis. Lewis met with Bankman-Fried for what looks like a big book deal. A book about Bankman-Fried that Lewis has allegedly been working on for months was first announced last month when the collapse of FTX sped up his release schedule. Lewis also authrd, “Moneyball,” and “The Blind Side.”
What a wild ride it has become since the famed author Michael Lewis started putting pen to paper when he first traveled around the world with the former FTX founder known as SBF as long as six months ago. Lewis reportedly spent six months shadowing Bankman and conducting in-depth interviews before SBF was detained on federal charges. Let the saga begin.
According to The New York Post on Tuesday, the sudden visit has sparked rumors that the renowned novelist may be planning to publish a book about Sam Bankman-Fried and the failure of his cryptocurrency company FTX. Lewis’ upcoming book is being negotiated for movie rights, which will eventually go to Apple (NASDAQ:AAPL).
As more detailed information becomes uncovered, according to court records, Bankman-Fried and his FTX cofounder Gary Wang obtained $546 million in promissory notes from Alameda to pay for the purchase of Robinhood stock. CoinDesk said that Alameda obtained a loan and used those same shares as security. Sam Bankman-Fried , ejected from possession of Robinhood shares by the new leaders of bankrupt FTX.
The 56 million shares, valued at $450 million, comprise 7.6% of the trading app company Robinhood. Part of the complaint states- BlockFi has been a lender to Alameda for at least three years. With news of FTX’s imminent collapse making headlines worldwide, just two days before the Debtors (including FTX Trading and Alameda) filed for bankruptcy, BlockFi scrambled to protect itself from impending losses on antecedent loans by threatening to seek remedies against Alameda if Alameda did not pledge additional collateral for those loans. In response to those threats, and despite the perilous financial position of Alameda and the other Debtors, Alameda’s then-CEO Caroline Ellison, with knowledge and encouragement from Mr. Bankman-Fried, purportedly agreed to pledge over $1 billion worth of additional Alameda assets to secure Alameda’s outstanding loan obligations to BlockFi.
Robinhood shares soar by 14 percent as reports mentioned a possible FTX deal
The Robinhood Shares were included in these pledged assets by Alameda’s then-CEO, despite the fact that the Robinhood Shares were nominally held by Emergent, because Alameda had then, and continues to have, a property interest in the Robinhood Shares.
“Meanwhile, in Antigua, a creditor of FTX Trading, Mr. Ben Shimon, has obtained a freezing injunction from an Antiguan court with respect to the assets of Emergent, including the Robinhood Shares, following the appointment of receivers for Emergent and the Shares. The receivers were appointed after the Antiguan court concluded there was sufficient evidence that the Robinhood Shares were purchased with funds from FTX Trading and, therefore, should be available to pay prepetition claims of creditors of FTX Trading, such as Mr. Ben Shimon. The receivers have purported to replace Mr. Bankman-Fried as sole director of Emergent.
In May, Emergent and Bankman-Fried revealed their 7.6% ownership of trading app provider Robinhood. Approximately 56.3 million shares were purchased by the then-crypto billionaire for $648 million, according to a Securities and Exchange Commission filing.
The four parties vying to acquire FTX filed a motion on Thursday asking the US bankruptcy court to halt all trading in the company’s shares while the ownership conflict is resolved.
Now as SBF desperately is trying to save grace, Bankman-parents now have to spend $10,000 each week for security as disgraced crypto fraudster awaits his fate at his parent home under house arrest. Sam Bankman-Fried is expected to enter plea next week in FTX fraud criminal case.
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Robinhood shares soar by 14 percent as reports mentioned a possible FTX deal
