FTX creditor Sunil Kavuri has released a podcast episode with crypto journalist David Morris examining the psychological factors behind Sam Bankman-Fried’s fraud. Kavuri lost over 1.8 million pounds to the FTX collapse and has appeared in multiple documentaries covering the exchange failure.
Morris is the author of the upcoming book “Stealing the Future: Sam Bankman-Fried, Elite Fraud and the Cult of Techno Utopia,” scheduled for release on November 11. The 340-page work analyzes the $10 billion fraud that affected approximately 1 million customers worldwide.
Joe Bankman: ‘the guy you recommend to head international legal supervision…has already been on tape advising somebody on how to cover up a fraud’ –@davidzmorris
‘it was the famed short seller Marc Cohodes @AlderLaneEggs…literally said that was the smoking gun before it all… pic.twitter.com/LFQKfptWBd
— Sunil (FTX Creditor Champion) (@sunil_trades) October 8, 2025
The conversation explored Morris’s background covering cryptocurrency exchange frauds since 2013. He previously reported on QuadrigaCX, a Canadian exchange where the CEO allegedly died in India while holding all private keys, and exposed the Luna/Terra collapse before its implosion.
CoinDesk Investigation Triggered FTX’s Unraveling
Morris discussed how CoinDesk reporter Ian Allison obtained the Alameda Research balance sheet showing approximately $5 billion in FTX-issued tokens. The November 2, 2022, scoop revealed the close financial relationship between the supposedly independent entities.
The revelation proved critical because Sam Bankman-Fried had repeatedly claimed no involvement with Alameda Research operations. Trial evidence later showed he actively directed activities at the trading firm while maintaining public distance.
Morris wrote an influential article on November 30, 2022, titled “FTX’s Collapse was a Crime, not an Accident.” The piece identified executive loans from corporate funds as the smoking gun proving criminal intent rather than mismanagement.
Morris credited bankruptcy CEO John Ray III, who handled the Enron collapse, for exposing the fraud’s scope through initial filings. Ray notably described FTX as the most disorganized company he had encountered, despite his experience with major corporate failures. His early statements signaled the depth of the problems at the exchange.
Joe Bankman’s Role in The Fraud Structure
Morris highlighted statements about Sam Bankman-Fried’s father, Joe Bankman, a tax lawyer who helped structure financial transfers. “The guy you recommend to head international legal supervision…has already been on tape advising somebody on how to cover up a fraud,” Morris stated.
Kavuri confirmed that famed short seller Marc Cohodes identified this as a smoking gun before the exchange collapsed. Joe Bankman’s communications revealed discussions about structuring executive loans and potentially writing them off, despite no apparent expectation of repayment.
The podcast addressed Michael Lewis’s book “Going Infinite,” which was released when FTX’s trial began. Morris criticized Lewis for muddying waters around Bankman-Fried’s criminality, stating Lewis wanted the book to serve as “a letter to the jury.” He also briefly compared the case to Do Kwon’s Terra/Luna collapse, noting both founders posed as geniuses while committing fraud behind the scenes.
Related: https://coinedition.com/cz-escapes-service-hamas-lawsuit-dc-federal-court-ruling/
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