Michael Lewis, the author of The Big Short, has been accused of being involved in a scandal between FTX, the stock market and the SEC. Lewis reportedly had full access and visibility into FTX and Alameda on account of his writing about the exchange’s former CEO, Sam Bankman-Fried. Despite this, Lewis failed to blow the whistle, raise any alarm, or report any red flags. Moreover, the author allegedly knew of FTX’s insolvency before its collapse in November 2022. Critics are questioning whether Lewis is corrupt or an “absolute idiot”.
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Is the author of The Big Short in on the scam? Let’s take a closer look.
The Big Short author embedded with FTX CEO for six months
Michael Lewis, author of The Big Short and Moneyball, has reportedly been embedded with FTX’s former CEO Sam Bankman-Fried for six months and will pen a book telling the inside story.
FTX and IEX partnership
In March 2022, FTX and IEX held joint meetings with the SEC, aiming for safe harbor in US operations. FTX US later announced an investment in IEX that same year. Lewis wrote a shillpiece for IEX in 2014 and for FTX in 2022, raising questions over his involvement.
FTX’s regulatory agenda
FTX boasted it was the most regulated exchange on the planet, paying off authorities to achieve this. Company documents reveal several deals, including a previously unreported partnership with IEX Group, the US stock trading platform featured in Michael Lewis’ book Flash Boys.
Michael Lewis’ questionable role
Lewis had full access and visibility into SBF, FTX and Alameda, but failed to blow the whistle, raise any alarm or report any red flags during his six-month tenure. He also met with SBF during his house arrest in December 2022.
Conclusion
The connections between Lewis, FTX, IEX and the SEC raise many unanswered questions as to Lewis’ involvement in the scam. It is unclear whether he is completely corrupt or an absolute idiot, but his actions warrant further investigation.
