1 00:00:15,316 --> 00:00:15,836 Speaker 1: Push Kim. 2 00:00:18,756 --> 00:00:21,036 Speaker 2: Hello listeners. If you've been enjoying our coverage of the 3 00:00:21,036 --> 00:00:23,916 Speaker 2: trial of Sam Bankman Freed so far and are looking 4 00:00:23,916 --> 00:00:26,596 Speaker 2: to dive even deeper into Sam's past, you should take 5 00:00:26,636 --> 00:00:30,996 Speaker 2: a listen to Wondery in Bloomberg's podcast Spellcaster, the Fall 6 00:00:31,076 --> 00:00:34,596 Speaker 2: of Sam Bankman Freed. His fall from grace represents one 7 00:00:34,596 --> 00:00:38,156 Speaker 2: of the most spectacular failures of corporate controls in American history. 8 00:00:38,836 --> 00:00:41,676 Speaker 2: Here interviews with Sam Bankman Freed himself and his former 9 00:00:41,716 --> 00:00:45,716 Speaker 2: girlfriend and business partner, Caroline Ellison, who later admitted something 10 00:00:45,756 --> 00:00:50,996 Speaker 2: had gone very wrong inside their operation. From Bloomberg and 11 00:00:51,036 --> 00:00:56,036 Speaker 2: Wondery comes Spelcaster, hosted by Bloomberg reporter Hannah Miller, now 12 00:00:56,076 --> 00:00:58,476 Speaker 2: with an all new bonus episode that takes you inside 13 00:00:58,476 --> 00:01:02,316 Speaker 2: the courtroom at Sam Bankman Fried's trial, including expert analysis, 14 00:01:02,356 --> 00:01:05,396 Speaker 2: what to watch for, and more behind the scenes reporting. 15 00:01:06,596 --> 00:01:11,036 Speaker 2: Here's a clip from Spelcaster. Follow Spellcaster on the Wondery 16 00:01:11,076 --> 00:01:23,116 Speaker 2: app or wherever you get your podcasts. 17 00:01:23,316 --> 00:01:26,676 Speaker 3: The Baja Maar Resort is a gargantuan hotel on a 18 00:01:26,716 --> 00:01:31,476 Speaker 3: gorgeous stretch of Bahama's beach front. You enter by crossing 19 00:01:31,516 --> 00:01:35,476 Speaker 3: a Roman style bridge over a landscaped lake where every 20 00:01:35,596 --> 00:01:38,836 Speaker 3: night there's a glitzy fountain show with pulsing lights and 21 00:01:38,956 --> 00:01:43,076 Speaker 3: extremely loud music. It's like the Bellagio on the Caribbean. 22 00:01:44,956 --> 00:01:48,116 Speaker 3: Take In Climb checked into the Baha mar one afternoon 23 00:01:48,236 --> 00:01:49,796 Speaker 3: in April of twenty twenty two. 24 00:01:50,196 --> 00:01:52,836 Speaker 1: So you arrive and there's a fish tank behind the 25 00:01:52,956 --> 00:01:53,876 Speaker 1: check and dusk. 26 00:01:53,836 --> 00:01:56,196 Speaker 3: A big vertical tank filled with lionfish. 27 00:01:56,276 --> 00:02:00,076 Speaker 1: To be more specific, there were signs for Cryptobahamas everywhere. 28 00:02:00,276 --> 00:02:02,556 Speaker 1: It really felt like the whole island was kind of 29 00:02:02,556 --> 00:02:03,756 Speaker 1: buzzing about this event. 30 00:02:04,036 --> 00:02:07,516 Speaker 3: Tagan was a twenty nine year old crypto entrepreneur and influencer. 31 00:02:08,156 --> 00:02:10,796 Speaker 3: She'd done a lot of these crypto conferences before, but 32 00:02:10,836 --> 00:02:13,716 Speaker 3: she didn't know much about this one called Crypto Bahamas, 33 00:02:14,036 --> 00:02:16,676 Speaker 3: other than that it was invite only and she'd agreed 34 00:02:16,676 --> 00:02:17,756 Speaker 3: to speak the event. 35 00:02:18,036 --> 00:02:21,796 Speaker 1: It almost had this dark fantasy Disneyland Vegas vibe to it, 36 00:02:22,476 --> 00:02:25,156 Speaker 1: and it really felt surreal from the moment that I landed. 37 00:02:25,436 --> 00:02:28,636 Speaker 3: She got her badge and was directed toward the VIP reception. 38 00:02:29,796 --> 00:02:31,956 Speaker 3: She walked out on the hotel lawn to find a 39 00:02:31,996 --> 00:02:36,276 Speaker 3: small gathering of people surrounded by cabanas and giant video screens. 40 00:02:36,756 --> 00:02:38,876 Speaker 3: A local marching band played in the background. 41 00:02:39,076 --> 00:02:41,756 Speaker 1: There was one big table. It was a long, rectangular 42 00:02:41,836 --> 00:02:44,596 Speaker 1: table set for about sixty people, So we kind of 43 00:02:44,636 --> 00:02:46,476 Speaker 1: cull us in the middle of that table and we 44 00:02:46,556 --> 00:02:49,476 Speaker 1: all talked together. It was a three course meal, no 45 00:02:49,596 --> 00:02:52,196 Speaker 1: caviat but definitely nice food. 46 00:02:52,476 --> 00:02:56,116 Speaker 3: The guests took turns introducing themselves. There were a lot 47 00:02:56,196 --> 00:03:00,076 Speaker 3: of the usual suspects hedge, fun guy, venture capital dude, 48 00:03:00,116 --> 00:03:03,396 Speaker 3: crypto bro. Then a woman sat down at the table. 49 00:03:03,716 --> 00:03:06,836 Speaker 1: She came with two guys and they were very nice. 50 00:03:06,876 --> 00:03:08,556 Speaker 1: They apologized for being late to the dinner. 51 00:03:09,196 --> 00:03:12,636 Speaker 3: Can recognize the woman right away. It was Katy Perry 52 00:03:12,916 --> 00:03:17,156 Speaker 3: has an international pop superstar, Katy Perry. Then the guy 53 00:03:17,196 --> 00:03:18,116 Speaker 3: next to her spoke of. 54 00:03:18,316 --> 00:03:21,796 Speaker 1: He said, I got famous from my role playing legalist 55 00:03:21,836 --> 00:03:24,756 Speaker 1: and Lord of the Rings, and it was actually Orlando Bloom. 56 00:03:24,916 --> 00:03:28,676 Speaker 3: But for this crowd, Katy Perry and Orlando Bloom weren't 57 00:03:28,756 --> 00:03:34,076 Speaker 3: the biggest celebrities there. The next morning, Michael Lewis, the 58 00:03:34,116 --> 00:03:38,356 Speaker 3: world renowned business journalist, sat on stage with an awkward 59 00:03:38,396 --> 00:03:41,636 Speaker 3: looking thirty year old guy with a mop of curly hair, 60 00:03:42,036 --> 00:03:44,516 Speaker 3: wearing shorts and a baggy T shirt. 61 00:03:44,716 --> 00:03:47,356 Speaker 4: Three years ago, nobody knew who you were, and now 62 00:03:47,396 --> 00:03:50,636 Speaker 4: you're sitting on the cover of magazines and you're a 63 00:03:50,636 --> 00:03:52,076 Speaker 4: gazillionaire and you're. 64 00:03:52,036 --> 00:03:54,796 Speaker 3: This was who people were here to see, the co 65 00:03:54,916 --> 00:03:59,316 Speaker 3: founder and CEO of FTX, one of the world's largest 66 00:03:59,436 --> 00:04:04,316 Speaker 3: crypto exchanges. He was a billionaire many times over, a 67 00:04:04,356 --> 00:04:09,076 Speaker 3: prolific political donor, a boundary breaking philanthropist, and he does 68 00:04:09,236 --> 00:04:10,716 Speaker 3: it all in just a few years. 69 00:04:11,036 --> 00:04:14,676 Speaker 4: These are world This is your breaking land speed records, 70 00:04:15,236 --> 00:04:18,556 Speaker 4: and I don't think people are really noticing what's happened, 71 00:04:18,756 --> 00:04:22,476 Speaker 4: just how dramatic the revolution has become. There's a status 72 00:04:22,476 --> 00:04:24,716 Speaker 4: of people that's going on in the financial world, and 73 00:04:24,756 --> 00:04:25,916 Speaker 4: you're sitting right in the. 74 00:04:25,836 --> 00:04:28,836 Speaker 3: Middle of it. Sam Bankman Freed. 75 00:04:29,316 --> 00:04:32,916 Speaker 5: Yeah, I mean basically, And I think the way that 76 00:04:32,996 --> 00:04:36,636 Speaker 5: sort of I approached it was like, what should the 77 00:04:36,676 --> 00:04:37,556 Speaker 5: product be like? 78 00:04:38,036 --> 00:04:41,076 Speaker 3: You know, Lewis has written some of the definitive business 79 00:04:41,116 --> 00:04:45,476 Speaker 3: books of the past forty years, Moneyball, Liar's Poker, and 80 00:04:45,516 --> 00:04:49,796 Speaker 3: The Big Short. He has spent a lifetime sorting businesses, 81 00:04:49,876 --> 00:04:53,756 Speaker 3: good guys from the Charlatans, and on stage at least 82 00:04:53,916 --> 00:04:57,236 Speaker 3: he sounded impressed by what Sam Bankman Freed had accomplished. 83 00:04:58,036 --> 00:05:02,196 Speaker 3: And Sam didn't just sit with Michael Lewis. He was everywhere. 84 00:05:02,636 --> 00:05:05,996 Speaker 3: He shared the stage with former President Bill Clinton and 85 00:05:06,076 --> 00:05:09,756 Speaker 3: former British Prime Minister Tony Blair. He had an intimate 86 00:05:09,876 --> 00:05:13,316 Speaker 3: heart to heart with Tom Brady, and then another with 87 00:05:13,396 --> 00:05:17,676 Speaker 3: the quarterback's then wife, Giselle Bunschin, the Brazilian supermodel. 88 00:05:17,956 --> 00:05:23,196 Speaker 5: Oh that's just done, you know, I mean, ultimately, the 89 00:05:23,316 --> 00:05:26,076 Speaker 5: scale of impact you can have on the world is 90 00:05:26,236 --> 00:05:28,756 Speaker 5: just really, really large. 91 00:05:28,836 --> 00:05:32,836 Speaker 3: Sam was beyond awkward. His leg bounced wildly as he spoke, 92 00:05:33,236 --> 00:05:35,876 Speaker 3: his eyes darted around the room, and. 93 00:05:36,196 --> 00:05:39,436 Speaker 5: You know, that's I think what really sets it apart. 94 00:05:39,796 --> 00:05:43,836 Speaker 3: His audience didn't seem to care. His awkwardness came off 95 00:05:43,876 --> 00:05:47,156 Speaker 3: as a kind of charm like he was totally indifferent 96 00:05:47,236 --> 00:05:50,676 Speaker 3: to what people thought about it, and they lapped it up, 97 00:05:51,676 --> 00:05:56,036 Speaker 3: especially when he talked about his driving motivation doing good. 98 00:05:57,196 --> 00:05:59,796 Speaker 3: Sam had promised to give all of his wealth away, 99 00:06:00,196 --> 00:06:02,876 Speaker 3: all twenty six billion dollars of it. 100 00:06:02,996 --> 00:06:05,796 Speaker 6: The Ftech Foundation's recent announcement to give up to one 101 00:06:05,916 --> 00:06:09,476 Speaker 6: billion dollars this year alone to high impact chair parties 102 00:06:09,796 --> 00:06:13,356 Speaker 6: show how Sam is transforming corporate governance and becoming the 103 00:06:13,396 --> 00:06:16,916 Speaker 6: modern day CEO that the world needs today. 104 00:06:16,956 --> 00:06:20,236 Speaker 3: We'll discuss on stage with Giselle. Salmon bailed a new 105 00:06:20,276 --> 00:06:23,876 Speaker 3: ad showing him standing with his arms crossed with a 106 00:06:23,916 --> 00:06:28,436 Speaker 3: calmly confident, even virtuous expression on his face. He wore 107 00:06:28,476 --> 00:06:31,556 Speaker 3: a hoodie and shorts. The quote on his ad said, 108 00:06:32,156 --> 00:06:34,596 Speaker 3: I'm in on crypto because I want to make the 109 00:06:34,636 --> 00:06:48,916 Speaker 3: biggest global impact for good. Taigan Klein had never seen 110 00:06:48,956 --> 00:06:49,876 Speaker 3: anything like it. 111 00:06:50,156 --> 00:06:52,396 Speaker 1: I think a lot of people were kind of in awe. 112 00:06:52,876 --> 00:06:56,556 Speaker 3: The crowd was captivated by Sam's good intentions, by the 113 00:06:56,596 --> 00:07:00,596 Speaker 3: celebrities and world leaders he kept company with, and the 114 00:07:00,596 --> 00:07:02,556 Speaker 3: sheer scale of his promises. 115 00:07:02,836 --> 00:07:05,556 Speaker 1: And this is where I realized that it was kind 116 00:07:05,556 --> 00:07:07,156 Speaker 1: of the Sam Show. 117 00:07:07,436 --> 00:07:11,836 Speaker 3: The Sam Show. The spring of twenty twenty two, Crypto 118 00:07:11,956 --> 00:07:16,196 Speaker 3: was booming and Sam Bankman Freed was the star. At 119 00:07:16,196 --> 00:07:20,436 Speaker 3: one point, FTX said it was processing on average, twelve 120 00:07:20,476 --> 00:07:24,156 Speaker 3: and a half billion dollars worth of transactions each day, 121 00:07:24,996 --> 00:07:27,556 Speaker 3: and it was all Sam claimed in the name of 122 00:07:27,676 --> 00:07:32,196 Speaker 3: one day giving his fortune away to save the world. Then, 123 00:07:32,876 --> 00:07:36,116 Speaker 3: not long after his star turn in the Bahamas, The 124 00:07:36,196 --> 00:07:41,956 Speaker 3: Sam Show began a very different season. Competitors and regulators 125 00:07:42,076 --> 00:07:47,156 Speaker 3: began to circle Crypto prices were falling. Behind the scenes, 126 00:07:47,436 --> 00:07:52,036 Speaker 3: Sam's closest advisors were abandoning him. At the same time, 127 00:07:52,436 --> 00:07:55,676 Speaker 3: my colleagues at Bloomberg started poking at the myth of 128 00:07:55,796 --> 00:07:59,636 Speaker 3: Sam Bankman freed, and we published stories about it. We 129 00:07:59,636 --> 00:08:02,916 Speaker 3: weren't the only ones, but even we couldn't imagine the 130 00:08:02,916 --> 00:08:07,476 Speaker 3: full scale of what was wrong inside Sam's empire. By 131 00:08:07,596 --> 00:08:12,676 Speaker 3: year's end, FTX was bankrupt, eight billion dollars were missing, 132 00:08:12,956 --> 00:08:18,556 Speaker 3: and Sam was in handcuffs. Investors, prosecutors, lawyers, and crypto 133 00:08:18,676 --> 00:08:22,276 Speaker 3: fans were all left to figure out what was real 134 00:08:22,636 --> 00:08:23,516 Speaker 3: and what wasn't. 135 00:08:31,596 --> 00:08:35,596 Speaker 2: Bingja episodes of Spellcaster ad free right now by joining 136 00:08:35,636 --> 00:08:39,396 Speaker 2: Wondery Plus in the Wondery app or on Apple podcasts.