WHAT EXACTLY HAD happened to all the money? By the time I arrived at Bankman-Fried’s penthouse, multiple news reports had emerged alleging that FTX had secretly lent billions of dollars of customer money to Alameda Research, which had lost it in some mix of bad bets, insane spending, and perhaps something even sketchier. John Ray III, the lawyer who was appointed CEO of the bankrupt exchange, alleged in court that FTX covered up the loans using secret software. Bankman-Fried denied this again to me. Returning to the framework of expected value, I asked him if the decisions he made were
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