Book SummaryGoing Infinite, by Michael Lewis

1-Page Summary1-Page Book Summary of Going Infinite

In just a few years, Sam Bankman-Fried went from being a relative nobody to the architect of a cryptocurrency empire whose net worth neared $30 billion. But, even quicker than his empire burst onto the scene, it crumbled in November 2022 with the news that his cryptocurrency exchange, FTX, had lost nearly $10 billion of its clients’ money. In Going Infinite (2023), financial journalist Michael Lewis provides a rare glimpse into the inner workings of Bankman-Fried’s meteoric rise and fall. And although Bankman-Fried has been convicted of seven counts of fraud and conspiracy, Lewis suggests that the case against Bankman-Fried is less damning than outsiders believe.

Through hundreds of interviews with Bankman-Fried and many days spent at FTX’s headquarters in the Bahamas prior to and during its implosion, Lewis had unparalleled access to Bankman-Fried that yields unique insight into the situation at FTX. Moreover, as he did in other bestsellers such as Liar’s Poker, Moneyball, and The Big Short, Lewis uses...

Going Infinite Summary Who Is Sam Bankman-Fried?

Before discussing his cryptocurrency empire, we’ll explore who Bankman-Fried is in the first place. We’ll begin with Lewis’s portrayal of Bankman-Fried before he became a crypto mogul, explaining why he spent his entire life as a social outcast, why he joined the effective altruism movement, and how he stumbled onto massive success as a rookie trader on Wall Street.

The Social Outcast

According to Lewis, Bankman-Fried has been a social outcast throughout his life, largely because he doesn’t understand—or outright disregards—social conventions that others deem important. In this section, we’ll examine how Bankman-Fried navigates social settings and how that’s left him chronically lonely.

Bankman-Fried’s Disregard for Social Norms

Lewis says that Bankman-Fried has struggled with social norms throughout his life, and this struggle continued even as he became one of the world’s wealthiest and most powerful individuals. To illustrate, we’ll look at three key examples: Bankman-Fried’s difficulty producing facial expressions, his behavior during virtual meetings, and his lack of concern for his appearance.

Lewis first relates that, in one of his interviews,...

Going Infinite Summary The Rise of Bankman-Fried’s Empire

The moment that Bankman-Fried left Jane Street Capital, his quest to build an empire began. In this section, we’ll examine how Bankman-Fried quickly became one of the wealthiest individuals in the world, detailing his ascent to stardom through the growth of his two companies—Alameda Research, a quantitative cryptocurrency trading firm, and FTX, an international cryptocurrency exchange. We’ll also discuss what Bankman-Fried did with his newfound wealth as his influence grew not just in the US, but the world.

The Development and Rise of Alameda Research

According to Lewis, Bankman-Fried’s empire began with Alameda Research, the quantitative cryptocurrency trading firm that Bankman-Fried started upon leaving Jane Street Capital. As Lewis relates, Bankman-Fried grew Alameda Research from a small group of effective altruists to a firm generating upwards of a billion dollars in annual profit by 2020.

Alameda’s beginning wasn’t seamless, however. Lewis writes that although Bankman-Fried had convinced wealthier effective altruists to loan him $170 million, by February 2018, the trading system that he had implemented was losing half a million dollars daily. Moreover,...

Going Infinite Summary The Collapse of Bankman-Fried’s Empire

Although Bankman-Fried’s cryptocurrency empire skyrocketed in just a few years, its collapse was even more sudden, lasting just a few days. In this section, we’ll examine Lewis’s account of the downfall of FTX, focusing on three key aspects: The precipitating events on November 6, 2022, that caused mass withdrawals from FTX, the missing $8.8 billion in customer deposits that FTX seemingly lost, and the aftermath of this massive scandal.

Precipitating Events Leading to the Collapse

Although FTX’s downfall seemed instantaneous to outsiders, Lewis writes that a series of cascading events precipitated the collapse. We’ll focus on three such events: A tweet from FTX’s largest competitor that undermined confidence in FTX, a response from Alameda’s CEO Caroline Ellison that exacerbated the issue, and mass withdrawals by FTX users.

Event #1: Changpeng Zhao’s Tweet

Lewis relates that, on November 6, 2022, Changpeng Zhao (CZ)—the CEO of the world’s largest cryptocurrency exchange, Binance—tweeted his intent to sell his shares of FTT (FTX’s own cryptocurrency that functioned as equity in FTX). In justifying his decision, CZ cited only “recent revelations” that...

Shortform Exercise: Reflect on FTX’s Collapse

Lewis writes that FTX’s collapse has affected public perception of the cryptocurrency industry as a whole. In this exercise, reflect on FTX’s collapse and how it impacted your perception of cryptocurrencies.

Prior to FTX’s downfall, how did you perceive cryptocurrencies? For instance, had you ever considered investing in crypto? Why or why not?