1 00:00:01,639 --> 00:00:03,960 Speaker 1: Hello, and welcome back to another episode of the Mark 2 00:00:04,080 --> 00:00:06,960 Speaker 1: Moa Show, where we talk about the decentralized revolution, the 3 00:00:06,960 --> 00:00:10,160 Speaker 1: way the world is changing through the lens of politics, finance, 4 00:00:10,240 --> 00:00:13,080 Speaker 1: and technology, and of course I try to always bring 5 00:00:13,119 --> 00:00:15,600 Speaker 1: to you some education that helps you see the world 6 00:00:15,600 --> 00:00:18,840 Speaker 1: a little bit differently, understand these deep complex issues a 7 00:00:18,840 --> 00:00:21,439 Speaker 1: little bit more simple so you can understand them. Some 8 00:00:21,480 --> 00:00:23,240 Speaker 1: of the latest breaking news so you know what's going on, 9 00:00:23,280 --> 00:00:25,959 Speaker 1: and of course some interesting guests, and I want to 10 00:00:26,000 --> 00:00:28,520 Speaker 1: talk about some of the big news headlines that have 11 00:00:28,560 --> 00:00:31,120 Speaker 1: been going over this week, because oh boy, if you're 12 00:00:31,160 --> 00:00:33,400 Speaker 1: not paying attention like I am every day, you are 13 00:00:33,440 --> 00:00:38,160 Speaker 1: not able to keep up because the world is changing really, really, 14 00:00:38,159 --> 00:00:41,040 Speaker 1: really fast. Now. Something I've been talking about at length 15 00:00:41,159 --> 00:00:45,080 Speaker 1: is this FTX situation blowing up, which of course is 16 00:00:45,120 --> 00:00:49,320 Speaker 1: important because it's literally changing the face of cryptocurrency as 17 00:00:49,360 --> 00:00:52,040 Speaker 1: we know it, not just cryptocurrency. I think it's going 18 00:00:52,120 --> 00:00:54,920 Speaker 1: to change the face of UH investing, it's going to 19 00:00:55,040 --> 00:00:59,760 Speaker 1: change the face of regulations in a big way. But 20 00:00:59,800 --> 00:01:02,840 Speaker 1: I also know that UM tens of billions of dollars, 21 00:01:02,840 --> 00:01:07,080 Speaker 1: potentially hundreds of thousands of Americans were really impacted by this. 22 00:01:07,280 --> 00:01:09,640 Speaker 1: Maybe millions of Americans. I don't know the exact number 23 00:01:09,640 --> 00:01:11,119 Speaker 1: of customers they have that will all come out through 24 00:01:11,120 --> 00:01:14,080 Speaker 1: the bankruptcy court. But ft X, the firm went down, 25 00:01:14,800 --> 00:01:18,040 Speaker 1: Uh I want to say taking customers funds with them, 26 00:01:18,080 --> 00:01:22,320 Speaker 1: which it was, but I'd even say stealing customers funds. 27 00:01:22,680 --> 00:01:24,240 Speaker 1: And unfortunately a lot of people lost a lot of 28 00:01:24,240 --> 00:01:27,520 Speaker 1: money and some people lost everything and it's unfortunate. Um, 29 00:01:27,560 --> 00:01:31,319 Speaker 1: and not just people but businesses and corporations and investment funds. 30 00:01:31,760 --> 00:01:36,119 Speaker 1: I mean, it took down everybody. And so they filed 31 00:01:36,160 --> 00:01:39,880 Speaker 1: for for chapter eleven through for bankruptcy. And so there's 32 00:01:39,920 --> 00:01:42,000 Speaker 1: some things going on that that I want to talk 33 00:01:42,040 --> 00:01:43,800 Speaker 1: about this week that you need to be aware of, 34 00:01:43,920 --> 00:01:47,280 Speaker 1: especially uh, well, if you're in the cryptocurrency space at all, 35 00:01:47,319 --> 00:01:49,000 Speaker 1: you need to be aware of these. If you had 36 00:01:49,120 --> 00:01:51,240 Speaker 1: money there, then you need to be aware of these 37 00:01:51,280 --> 00:01:54,280 Speaker 1: as well. So if you're anywhere in the cryptocurrency space 38 00:01:54,360 --> 00:01:57,520 Speaker 1: or were, and this probably applies to you. But we 39 00:01:57,520 --> 00:02:00,600 Speaker 1: we know that the like I said, they went chapter eleven. 40 00:02:00,600 --> 00:02:02,720 Speaker 1: They've got an attorney now that's kind of running them 41 00:02:02,720 --> 00:02:07,600 Speaker 1: through the bankruptcy court. And man, it is shocking what 42 00:02:07,760 --> 00:02:09,679 Speaker 1: is coming out we see here says that f t 43 00:02:09,840 --> 00:02:14,440 Speaker 1: X lawyer says that substantial amount of crypto of the 44 00:02:14,440 --> 00:02:21,920 Speaker 1: crypto firms assets are stolen or missing and so um. 45 00:02:21,960 --> 00:02:24,480 Speaker 1: You know, in bankruptcy they kind of change out the management. 46 00:02:24,520 --> 00:02:26,120 Speaker 1: They bring in a different team, a steering team to 47 00:02:26,160 --> 00:02:28,120 Speaker 1: kind of to kind of run them through this. And 48 00:02:28,160 --> 00:02:30,160 Speaker 1: we see here says that that quote f t X 49 00:02:30,200 --> 00:02:35,440 Speaker 1: was in the control of inexperienced and unsophisticated individuals and 50 00:02:35,560 --> 00:02:40,520 Speaker 1: some or all of them were compromised individuals. End quote 51 00:02:41,560 --> 00:02:45,000 Speaker 1: says James Brawley, Bromley counsel to f t XS new 52 00:02:45,040 --> 00:02:50,280 Speaker 1: management boy, talk about throwing them under the bus. It 53 00:02:50,320 --> 00:02:55,000 Speaker 1: was in the control of inexperienced and unsophisticated individuals and 54 00:02:55,000 --> 00:03:01,160 Speaker 1: they were compromised. What does that mean? Well, Sam Bankman Freed, 55 00:03:01,240 --> 00:03:04,639 Speaker 1: the founder, was supposedly the wonder kid. He was supposedly 56 00:03:04,639 --> 00:03:06,760 Speaker 1: the smartest guy in the world. He was the one 57 00:03:06,800 --> 00:03:09,400 Speaker 1: on stage with Bill Clinton. He was on the stage 58 00:03:09,760 --> 00:03:15,280 Speaker 1: with a rubbing shoulders with the most advanced regulators from 59 00:03:15,280 --> 00:03:19,960 Speaker 1: the SEC, from the cftc UH, from the Financial Services Committee, 60 00:03:20,040 --> 00:03:23,800 Speaker 1: like Maxine Waters taking pictures Buddy, Buddy. He was being 61 00:03:24,400 --> 00:03:27,320 Speaker 1: going into Washington, d C. On a very regular basis 62 00:03:27,520 --> 00:03:30,880 Speaker 1: to set all new regulations and set all new policies 63 00:03:30,880 --> 00:03:34,320 Speaker 1: on the entire industry. He was the guy. But it 64 00:03:34,320 --> 00:03:37,480 Speaker 1: says right here it was in the control, in control 65 00:03:37,520 --> 00:03:44,720 Speaker 1: of inexperienced and unsophisticated individuals that were compromised. So how 66 00:03:44,920 --> 00:03:48,400 Speaker 1: is it that the that the guy Sam Bankman freed SPF, 67 00:03:48,440 --> 00:03:52,920 Speaker 1: the guy who the regulators were bringing up the Biden 68 00:03:52,960 --> 00:03:57,440 Speaker 1: administration was listening to, that was responsible to put policies 69 00:03:57,560 --> 00:04:04,800 Speaker 1: in place, was actually unsophisticated and he was compromised. How 70 00:04:04,880 --> 00:04:09,880 Speaker 1: was he compromised? Well, we do know that supposedly his 71 00:04:10,120 --> 00:04:12,920 Speaker 1: entire goal, which everything was alive, So we don't really 72 00:04:12,920 --> 00:04:16,479 Speaker 1: know what to believe. But supposedly he said he didn't 73 00:04:16,480 --> 00:04:19,400 Speaker 1: care about money. Supposedly he just wanted to give all 74 00:04:19,440 --> 00:04:21,000 Speaker 1: his money away to good and he did. He gave 75 00:04:21,040 --> 00:04:24,960 Speaker 1: a lot of away. Um. He gave forty million, about 76 00:04:24,960 --> 00:04:28,320 Speaker 1: thirty eight million dollars to the Democratic Party for the 77 00:04:28,320 --> 00:04:31,159 Speaker 1: mid terms, and not just the Democratic Party but too 78 00:04:31,640 --> 00:04:36,080 Speaker 1: heavy progressives in the Democratic Party. He was Biden's second 79 00:04:36,160 --> 00:04:39,960 Speaker 1: largest donor and last presidential election. Um he wanted to 80 00:04:40,000 --> 00:04:43,240 Speaker 1: give a billion dollars to the Democrats for the next 81 00:04:43,279 --> 00:04:50,040 Speaker 1: presidential election eighteen million for COVID pandemic um planning, and 82 00:04:50,080 --> 00:04:51,880 Speaker 1: so it wasn't just a little bit of money, it 83 00:04:51,960 --> 00:04:53,760 Speaker 1: was a lot of money. He was in bed with 84 00:04:53,839 --> 00:04:58,200 Speaker 1: the world that comic Forum um and so maybe that's 85 00:04:58,200 --> 00:05:02,080 Speaker 1: what they're talking about as comprised individuals, is what they say. 86 00:05:02,120 --> 00:05:04,440 Speaker 1: But it says here quote what we have here is 87 00:05:04,480 --> 00:05:08,800 Speaker 1: a worldwide international organization, but which was run as a 88 00:05:08,960 --> 00:05:14,159 Speaker 1: personal fiefdom of Sam Bankman Freed. Mr Bromley said, so, 89 00:05:14,400 --> 00:05:18,600 Speaker 1: if you know anything about businesses like corporations, you know 90 00:05:18,800 --> 00:05:21,520 Speaker 1: that once you start getting into corporations, you have things 91 00:05:21,560 --> 00:05:25,920 Speaker 1: like corporate law, and then you have certain things that 92 00:05:25,960 --> 00:05:29,360 Speaker 1: have to be done and you can't run them like 93 00:05:29,400 --> 00:05:33,359 Speaker 1: a personal fifdom. They have something called com mingling of funds, 94 00:05:33,400 --> 00:05:36,120 Speaker 1: and that means that your businesses are supposed to be 95 00:05:36,160 --> 00:05:39,160 Speaker 1: separate from your personal and your businesses are supposed to 96 00:05:39,160 --> 00:05:41,640 Speaker 1: be separate from each other as well. We know that 97 00:05:41,680 --> 00:05:44,880 Speaker 1: when the bankruptcy, when the when the bankrupty attorney went 98 00:05:44,880 --> 00:05:47,440 Speaker 1: in there to kind of figure this out, which, by 99 00:05:47,480 --> 00:05:50,640 Speaker 1: the way, he was in charge of the largest kind 100 00:05:50,640 --> 00:05:54,880 Speaker 1: of scandal bankruptcy and history, the Enron scandal. And he's 101 00:05:54,920 --> 00:05:56,560 Speaker 1: now working on this one. He said, this is the 102 00:05:56,560 --> 00:06:01,200 Speaker 1: worst one he's ever seen in his career. And they 103 00:06:01,360 --> 00:06:04,159 Speaker 1: you know, there are thirty thirty two billion dollar company, 104 00:06:04,200 --> 00:06:07,800 Speaker 1: two different companies, Alameda and f t X, and they 105 00:06:07,920 --> 00:06:11,799 Speaker 1: ran them like all out of one account. Customer funds 106 00:06:11,839 --> 00:06:16,000 Speaker 1: and deposits and investor funds and proceeds all just run 107 00:06:16,040 --> 00:06:18,440 Speaker 1: out of one account, with no ledger to even break 108 00:06:18,480 --> 00:06:22,000 Speaker 1: down who this belonged to, which is why it says 109 00:06:22,000 --> 00:06:24,360 Speaker 1: here a worldwide international organization, but which was run as 110 00:06:24,400 --> 00:06:28,000 Speaker 1: a personal fiefdom of Sam Bankman freed. That's illegal. It's 111 00:06:28,040 --> 00:06:31,080 Speaker 1: highly illegal. The Washington Journal has reported that f t 112 00:06:31,240 --> 00:06:35,480 Speaker 1: X was a chaotic mess of corporate entities, customer assets, 113 00:06:35,560 --> 00:06:40,360 Speaker 1: and Mr Bankman freed himself almost from the firm's inception, 114 00:06:40,720 --> 00:06:43,080 Speaker 1: so he ran this just as his personal slush fund, 115 00:06:44,320 --> 00:06:49,320 Speaker 1: including all his political donations. That's all illegal. F t 116 00:06:49,600 --> 00:06:52,479 Speaker 1: X as quote one of the most abrupt and difficult 117 00:06:52,480 --> 00:06:54,559 Speaker 1: collapses in the history of corporate America and the history 118 00:06:54,560 --> 00:06:58,880 Speaker 1: of corporate entities around the world. End quote. This is 119 00:06:58,880 --> 00:07:01,279 Speaker 1: a big deal. But what's going to happen out of 120 00:07:01,279 --> 00:07:04,719 Speaker 1: it is it's a big deal. These customers, they lost 121 00:07:04,760 --> 00:07:09,560 Speaker 1: their money. Now it's in bankruptcy court? Will the Democratic 122 00:07:09,600 --> 00:07:13,000 Speaker 1: Party give any of that money back? When you are 123 00:07:13,080 --> 00:07:17,720 Speaker 1: a politician running and you're soliciting campaign contributions, you have 124 00:07:17,840 --> 00:07:21,520 Speaker 1: a very very very high bar that those contributions are 125 00:07:21,520 --> 00:07:25,680 Speaker 1: supposed to match. As a matter of fact, we know 126 00:07:25,800 --> 00:07:32,640 Speaker 1: that Denis to Susa, who's a conservative filmmaker. Um, he 127 00:07:32,640 --> 00:07:38,400 Speaker 1: he got in trouble for taking a small amount Susan, 128 00:07:39,480 --> 00:07:45,160 Speaker 1: Let's see how much did he see? I would here 129 00:07:45,240 --> 00:07:49,520 Speaker 1: sentenced Manhatto Court to five I should have looked this 130 00:07:49,600 --> 00:07:53,200 Speaker 1: up ahead of time, um. Denis to Susan sentence in 131 00:07:53,240 --> 00:07:56,920 Speaker 1: Manhattan Federal Court to five years of probation for campaign 132 00:07:57,240 --> 00:08:03,080 Speaker 1: finance fraud. Denista sus attempted to illegally contribute over ten 133 00:08:03,120 --> 00:08:07,680 Speaker 1: thousand dollars to a Senate campaign, willfully undermining the integrity 134 00:08:07,680 --> 00:08:10,400 Speaker 1: of the campaign finance process. Like many others before him, 135 00:08:10,440 --> 00:08:12,680 Speaker 1: all political stripes. He has to answer for his crime 136 00:08:12,720 --> 00:08:17,480 Speaker 1: here with a felony conviction. So how dare he? In 137 00:08:17,520 --> 00:08:22,560 Speaker 1: the two thousand twelve election, um it limited campaign contributions 138 00:08:22,560 --> 00:08:26,640 Speaker 1: to five thousand dollars from any individual to one candidate, 139 00:08:27,240 --> 00:08:30,240 Speaker 1: But in March of two thousand twelve, just Susan contributed 140 00:08:30,280 --> 00:08:33,440 Speaker 1: ten thousand dollars to the Senate campaign of winning Wendy 141 00:08:33,520 --> 00:08:37,640 Speaker 1: long On behalf of himself and his wife, agreeing in 142 00:08:37,679 --> 00:08:40,400 Speaker 1: writing to attribute the contribution as five thousand from his 143 00:08:40,480 --> 00:08:51,559 Speaker 1: wife and five thousand from him. Um, so you can 144 00:08:51,559 --> 00:08:55,640 Speaker 1: only contribute five thousand, but he gave ten five thousand 145 00:08:55,720 --> 00:08:58,320 Speaker 1: from him five thousand his wife, which they thought would pass, 146 00:08:58,640 --> 00:09:01,680 Speaker 1: but nope, they did and he got five years of 147 00:09:01,760 --> 00:09:05,280 Speaker 1: campaign fraud. Now, what about the thirty eight million that 148 00:09:05,400 --> 00:09:09,000 Speaker 1: was just given to Democrats? Where did that money come from? 149 00:09:09,120 --> 00:09:11,959 Speaker 1: Is there going to be any scrutiny to that? I'd 150 00:09:11,960 --> 00:09:14,040 Speaker 1: sure like to know. I want to talk now about 151 00:09:14,080 --> 00:09:16,720 Speaker 1: what's going to happen with customer funds. Will customers get 152 00:09:16,760 --> 00:09:19,280 Speaker 1: any of their money back? And more important, they also 153 00:09:19,280 --> 00:09:21,440 Speaker 1: we're talking about what did they actually do with that 154 00:09:21,520 --> 00:09:23,200 Speaker 1: money To'll be back with all that and more in 155 00:09:23,200 --> 00:09:24,640 Speaker 1: a minute. If you're just tuning in, you're listening to 156 00:09:24,679 --> 00:09:27,520 Speaker 1: the Mark Moss Show breaking down the latest breaking news 157 00:09:27,559 --> 00:09:29,720 Speaker 1: in the cryptocurrency space this week. I'll be back with 158 00:09:29,760 --> 00:09:31,839 Speaker 1: all that and more in a minute, So don't go away. 159 00:09:32,000 --> 00:09:39,400 Speaker 1: I'll be right back all right. If you're just tuning in, 160 00:09:39,440 --> 00:09:41,640 Speaker 1: you're listening to the Mark Moa show. We're talking about 161 00:09:42,840 --> 00:09:46,079 Speaker 1: the latest breaking news around the Sam Bankman freed f 162 00:09:46,240 --> 00:09:49,760 Speaker 1: t X debacle. We'll just call it that, and it's 163 00:09:49,840 --> 00:09:54,040 Speaker 1: it's it's tragic. Uh, it's horrible, and I feel bad 164 00:09:54,040 --> 00:09:56,640 Speaker 1: for anybody caught up in this mess. And if you're 165 00:09:56,640 --> 00:09:59,199 Speaker 1: anywhere in the cryptocurrency space, you're probably caught up because 166 00:09:59,200 --> 00:10:01,000 Speaker 1: there's contagiou and going all over. I want to talk 167 00:10:01,040 --> 00:10:04,200 Speaker 1: about that other potential risks that there may be coming 168 00:10:04,200 --> 00:10:05,640 Speaker 1: down the pipe that you need to be aware of. 169 00:10:05,640 --> 00:10:07,600 Speaker 1: Like I said, if you're anywhere in the cryptocurrency space, 170 00:10:07,600 --> 00:10:09,160 Speaker 1: you don't know about this because it's set off just 171 00:10:09,240 --> 00:10:12,640 Speaker 1: a series of dominoes. The first thing I'd say is 172 00:10:12,679 --> 00:10:15,680 Speaker 1: that you know there's a headline from Walster Journal saying, 173 00:10:15,720 --> 00:10:20,520 Speaker 1: well the FTX crypto customers ever see their money again? 174 00:10:23,000 --> 00:10:26,560 Speaker 1: And unfortunately I hate to be the bearer of bad news, 175 00:10:27,160 --> 00:10:31,120 Speaker 1: but I think the answer is probably no. Fd X 176 00:10:31,160 --> 00:10:35,400 Speaker 1: file for bankruptcy on November eleven, um the the attorney 177 00:10:35,440 --> 00:10:39,000 Speaker 1: for the bankruptcy says, quote, only a fraction of FTX 178 00:10:39,040 --> 00:10:42,000 Speaker 1: digital assets have been located and secured, but we know 179 00:10:42,120 --> 00:10:45,680 Speaker 1: that they have managed to find somewhere about a billion 180 00:10:45,720 --> 00:10:51,680 Speaker 1: dollars of assets. The problem with that is that the 181 00:10:51,800 --> 00:10:57,360 Speaker 1: creditors are owed over three billion, so there's not even 182 00:10:57,400 --> 00:10:59,760 Speaker 1: a third of the money the creditors need, and so 183 00:10:59,840 --> 00:11:02,680 Speaker 1: the creditors are going to be first in seniority to 184 00:11:02,679 --> 00:11:09,320 Speaker 1: get their money back. You, as a depositor, have have 185 00:11:09,360 --> 00:11:11,520 Speaker 1: no recourse. You're at the end of the line. And 186 00:11:11,559 --> 00:11:14,040 Speaker 1: so what we know is that they've only been able 187 00:11:14,080 --> 00:11:16,080 Speaker 1: to find about a third of what the creditors are owed. 188 00:11:16,160 --> 00:11:18,600 Speaker 1: My guess is actually probably even way less than that. 189 00:11:19,240 --> 00:11:21,440 Speaker 1: Um A lot of the asset they have right now 190 00:11:21,480 --> 00:11:25,400 Speaker 1: are cryptocurrency assets, which are just losing value, and my 191 00:11:25,480 --> 00:11:27,520 Speaker 1: guess is the money they're able to find is going 192 00:11:27,559 --> 00:11:29,480 Speaker 1: to be only a fraction of what's going to be 193 00:11:29,520 --> 00:11:34,280 Speaker 1: owed to the debtors, to the creditors, and you, as 194 00:11:34,280 --> 00:11:37,280 Speaker 1: a depositor, will most likely not get anything. Now, I 195 00:11:37,559 --> 00:11:39,920 Speaker 1: don't want to crush your dreams and your hopes, but 196 00:11:40,080 --> 00:11:44,240 Speaker 1: I think that's going to be the case. And what 197 00:11:44,280 --> 00:11:45,720 Speaker 1: we can really hope is that there's going to be 198 00:11:45,760 --> 00:11:49,480 Speaker 1: some justice here, that Sam Bankmin Freed and his cohorts 199 00:11:49,520 --> 00:11:54,800 Speaker 1: will be held up for justice of stealing these people's money. 200 00:11:54,400 --> 00:11:58,200 Speaker 1: I am appalled why he's not already in handcuffs right now. 201 00:11:59,559 --> 00:12:02,440 Speaker 1: When burn he made off was finally found out that 202 00:12:02,520 --> 00:12:04,880 Speaker 1: he was running one of the biggest ponzis that we've 203 00:12:04,880 --> 00:12:09,520 Speaker 1: seen in US history, he was handcuffed immediately. We just 204 00:12:09,559 --> 00:12:13,760 Speaker 1: saw Elizabeth Holmes from Thorano's. She just got sentenced to 205 00:12:13,840 --> 00:12:19,800 Speaker 1: eleven point to five years in prison for defrauding sophisticated investors. 206 00:12:20,160 --> 00:12:24,640 Speaker 1: Here's Sam Bankman Freed SPF stole from you, from retail, 207 00:12:25,720 --> 00:12:29,960 Speaker 1: not from sophisticated to credit investors, from retail people. And 208 00:12:30,000 --> 00:12:31,400 Speaker 1: what did he do with it? It says right here 209 00:12:31,400 --> 00:12:36,400 Speaker 1: Bankman Freed's f TX senior staff and parents bought Bahamas 210 00:12:36,480 --> 00:12:40,720 Speaker 1: property is worth three hundred million dollars. Now, Sam Bankman 211 00:12:40,760 --> 00:12:43,120 Speaker 1: Freed supposedly, I don't need any money, I don't want 212 00:12:43,120 --> 00:12:45,120 Speaker 1: to be rich. I just drive it toward a Corolla. 213 00:12:45,280 --> 00:12:51,120 Speaker 1: I'm giving all my money to charity. Meanwhile, he was 214 00:12:51,200 --> 00:12:55,000 Speaker 1: living a lie. He was living in a I think 215 00:12:55,040 --> 00:12:59,240 Speaker 1: a thirty million dollar mansion, and he gave his parents 216 00:12:59,440 --> 00:13:05,240 Speaker 1: and three hundred million worth of property. Now his parents, 217 00:13:05,679 --> 00:13:08,199 Speaker 1: so Sam Bankman Freed, it's a hyphen aid last name. 218 00:13:08,200 --> 00:13:09,640 Speaker 1: One of his parents' is bankman, and one of his 219 00:13:10,040 --> 00:13:11,880 Speaker 1: parents is freed. I think I believe it's the father's 220 00:13:11,920 --> 00:13:16,720 Speaker 1: bank when his mother's freed. They're both attorneys, they're both 221 00:13:17,200 --> 00:13:22,679 Speaker 1: tax attorneys, and they're both heavily and they're both professors, 222 00:13:23,440 --> 00:13:26,800 Speaker 1: and they're both heavily involved into the Democratic Party. They're bundlers, 223 00:13:26,800 --> 00:13:29,760 Speaker 1: so they raise money for the Democratic Party. And his 224 00:13:29,880 --> 00:13:36,360 Speaker 1: father writes policy for Elizabeth Warren. So when you're a 225 00:13:36,440 --> 00:13:43,800 Speaker 1: tax law professor teaching and writing writing regulations for Elizabeth Warren, 226 00:13:44,160 --> 00:13:47,000 Speaker 1: you know better, all right, you know better. You're not 227 00:13:47,040 --> 00:13:51,000 Speaker 1: just some unsophisticated person. You don't just take three hundred 228 00:13:51,040 --> 00:13:53,760 Speaker 1: million dollars worth of property out of this, out of this. 229 00:13:54,920 --> 00:13:58,040 Speaker 1: I'll call it what it is a conspiracy. It says 230 00:13:58,080 --> 00:14:00,719 Speaker 1: here attorneys for ft exit on Tuesday that one of 231 00:14:00,760 --> 00:14:04,120 Speaker 1: the company's units spent three hundred million in the Bahamas 232 00:14:04,120 --> 00:14:08,240 Speaker 1: buying homes and vacation properties for its senior staff, and 233 00:14:08,280 --> 00:14:12,000 Speaker 1: the FTX was run as a personal fifetom. We already 234 00:14:12,000 --> 00:14:16,240 Speaker 1: talked about that. So uh, luxury beach front homes including 235 00:14:16,240 --> 00:14:19,520 Speaker 1: seven condom miniums and an expensive resort called Albany, costing 236 00:14:19,560 --> 00:14:24,800 Speaker 1: almost seventy two million for that one million, so you know, 237 00:14:24,800 --> 00:14:26,520 Speaker 1: Sam Bankman for you. Oh, I just want to get 238 00:14:26,600 --> 00:14:28,400 Speaker 1: rich so I can save the world. And I just 239 00:14:28,480 --> 00:14:31,240 Speaker 1: drive a Corolla and I don't care about money. Meanwhile, 240 00:14:31,280 --> 00:14:35,080 Speaker 1: living in a seventy two million dollar resort called Albany. 241 00:14:35,720 --> 00:14:41,920 Speaker 1: Mm hmm. So um. Not only is he a a liar, 242 00:14:42,680 --> 00:14:47,600 Speaker 1: he's a scammer, he's a fraud ster. And yet he's 243 00:14:47,640 --> 00:14:52,440 Speaker 1: still not in handcuffs, still not in handcuffs. As a 244 00:14:52,440 --> 00:14:54,840 Speaker 1: matter of fact, it's not that he's just not even 245 00:14:54,880 --> 00:14:58,160 Speaker 1: still not in handcuffs, which is incredible on its own. 246 00:14:58,760 --> 00:15:02,160 Speaker 1: On top of that, the New York Times still has 247 00:15:02,240 --> 00:15:07,480 Speaker 1: him scheduled to speak and of commuting on November. Um, 248 00:15:07,520 --> 00:15:11,480 Speaker 1: he's booked to speak with the same stage and meeting 249 00:15:11,560 --> 00:15:17,720 Speaker 1: as Janet Yelling, the Treasury Secretary and President Zelinsky from Ukraine. 250 00:15:19,120 --> 00:15:21,200 Speaker 1: And and this isn't just like they haven't got around 251 00:15:21,240 --> 00:15:23,440 Speaker 1: to update in the website. I've been following this and 252 00:15:23,520 --> 00:15:27,680 Speaker 1: they just updated the website and they took down one 253 00:15:27,840 --> 00:15:30,760 Speaker 1: somebody and they put up Ben Affleck, the actor. So 254 00:15:30,840 --> 00:15:33,440 Speaker 1: they just updated to put him on there. They couldn't 255 00:15:33,440 --> 00:15:36,880 Speaker 1: have updated to take Sam Bankman freedoff. He's still scheduled 256 00:15:36,920 --> 00:15:41,840 Speaker 1: to speak. He's not in handcuffs. I mean, this is 257 00:15:41,880 --> 00:15:45,560 Speaker 1: just insanity. This is just insanity. On the flip side, 258 00:15:46,800 --> 00:15:50,440 Speaker 1: we have I've talked about this before. There's a developer 259 00:15:50,520 --> 00:15:53,480 Speaker 1: that wrote a piece of software for like a cryptocurrency project. 260 00:15:54,000 --> 00:15:58,200 Speaker 1: He wrote a piece of software. He didn't use it. 261 00:15:58,360 --> 00:16:00,360 Speaker 1: He created it that other people could use. Is called 262 00:16:00,360 --> 00:16:07,080 Speaker 1: Tornado Cash. Alex per Per TASIV is to remain in 263 00:16:07,200 --> 00:16:11,400 Speaker 1: jail until at least late February. So this guy, a 264 00:16:11,480 --> 00:16:15,320 Speaker 1: Russian national living in the Netherlands, was accused of facilitating 265 00:16:15,560 --> 00:16:19,240 Speaker 1: money laundering by developing an app. So he created an 266 00:16:19,280 --> 00:16:23,920 Speaker 1: app that other people used. Supposedly they use this um illegally. Allegedly, 267 00:16:24,880 --> 00:16:27,400 Speaker 1: he didn't. He just created a piece of software that 268 00:16:27,520 --> 00:16:32,840 Speaker 1: people used potentially illegally, we don't know. He was arrested immediately. 269 00:16:33,360 --> 00:16:37,440 Speaker 1: He's being held indefinitely and he's not even scheduled to 270 00:16:37,480 --> 00:16:41,280 Speaker 1: have even a hearing until February for creating a piece 271 00:16:41,320 --> 00:16:47,680 Speaker 1: of software that potentially, allegedly people might use for things 272 00:16:47,720 --> 00:16:52,080 Speaker 1: that might be potentially illegal. Maybe if they find out, 273 00:16:52,200 --> 00:16:55,600 Speaker 1: it doesn't matter. He got picked up, he's whole. He's 274 00:16:55,640 --> 00:16:59,240 Speaker 1: being held indefinitely and maybe he'll get his hearing in 275 00:16:59,480 --> 00:17:04,000 Speaker 1: UM in February and maybe they'll find something. Think about 276 00:17:04,000 --> 00:17:05,960 Speaker 1: that for a minute, But SBF is prayed in around 277 00:17:05,960 --> 00:17:08,480 Speaker 1: town and still said to go whole talks and appearances. 278 00:17:10,359 --> 00:17:13,000 Speaker 1: The one thing that you can tell about the position 279 00:17:13,080 --> 00:17:18,199 Speaker 1: of the state where your government is how they prosecute crimes. 280 00:17:18,640 --> 00:17:22,280 Speaker 1: How do they prosecute crimes against their own citizens? So 281 00:17:22,320 --> 00:17:25,040 Speaker 1: how are they prosecuting crimes that SPF has committed against 282 00:17:25,080 --> 00:17:27,719 Speaker 1: the citizens of the United States versus how do they 283 00:17:27,760 --> 00:17:33,400 Speaker 1: prosecute crimes against their own power. So here's the Netherlands 284 00:17:33,440 --> 00:17:36,760 Speaker 1: resident from Russia that create a piece of software, And 285 00:17:36,800 --> 00:17:39,520 Speaker 1: look what the U S is doing, And look what 286 00:17:39,560 --> 00:17:43,000 Speaker 1: they're doing to somebody like Sam BigMan Freed, who literally 287 00:17:43,040 --> 00:17:46,600 Speaker 1: defrauded billions of dollars from U S. Citizens. And they're 288 00:17:46,600 --> 00:17:49,960 Speaker 1: doing nothing. They're still propping them up, They're still allowing 289 00:17:49,960 --> 00:17:51,840 Speaker 1: to speak on the same stage with the US Treasury 290 00:17:51,880 --> 00:17:57,840 Speaker 1: Secretary of Treasury Jenny Ellen. It's a sad day. It's 291 00:17:57,840 --> 00:17:59,560 Speaker 1: a sad day when you can see the position of 292 00:17:59,560 --> 00:18:02,560 Speaker 1: the state by how they prosecute crimes against their citizens 293 00:18:03,119 --> 00:18:09,199 Speaker 1: versus crimes against themselves. Tax evasion, that's fifteen years, oh, 294 00:18:09,320 --> 00:18:12,040 Speaker 1: ten billion dollars from citizens. No worries. We'll still invite 295 00:18:12,040 --> 00:18:13,840 Speaker 1: you to speak at the White House. Anyway. If you're 296 00:18:13,880 --> 00:18:15,520 Speaker 1: just tuning in, you're listening to the Markma Show, we're 297 00:18:15,520 --> 00:18:17,800 Speaker 1: talking about some of the latest breaking news that's going 298 00:18:17,840 --> 00:18:19,520 Speaker 1: on in the cryptocurrency space this week. I got more 299 00:18:19,560 --> 00:18:21,040 Speaker 1: to cover when I come back. Don't go away, I'll 300 00:18:21,040 --> 00:18:23,399 Speaker 1: be right back, all right, Welcome back. If you're just 301 00:18:23,400 --> 00:18:25,360 Speaker 1: tuning in, you're listening to the Mark Mos Show. We're 302 00:18:25,680 --> 00:18:29,680 Speaker 1: running through the biggest headlines happening in the cryptocurrency space. 303 00:18:29,720 --> 00:18:31,720 Speaker 1: In the we look at the world through the lens 304 00:18:31,720 --> 00:18:36,920 Speaker 1: of politics, finance, and technology as we're witnessing the technological 305 00:18:37,440 --> 00:18:41,280 Speaker 1: revolution happening, the decentralized revolution happening. We're talking about f 306 00:18:41,400 --> 00:18:43,760 Speaker 1: t X is blowing up, and then we're talking about 307 00:18:43,800 --> 00:18:46,600 Speaker 1: how the regulations against f t X versus like someone 308 00:18:46,640 --> 00:18:48,600 Speaker 1: who created a piece of software like Tornado Cash, are 309 00:18:48,640 --> 00:18:54,720 Speaker 1: so glaringly different. Another one that I want to talk 310 00:18:54,760 --> 00:18:57,240 Speaker 1: about is I've been talking about a while, which one 311 00:18:57,240 --> 00:18:58,960 Speaker 1: of the big pieces that really led to this whole 312 00:18:58,960 --> 00:19:01,760 Speaker 1: domino effect, this cascade and effect in the cryptocurrency space 313 00:19:01,800 --> 00:19:05,560 Speaker 1: with Celsius. Celsius was what's called a c FI. It's 314 00:19:05,640 --> 00:19:09,000 Speaker 1: centralized finance. So there's DeFi, which is supposed to stand 315 00:19:09,040 --> 00:19:12,639 Speaker 1: for decentralized finance, and then there's c FI, which is 316 00:19:12,680 --> 00:19:17,439 Speaker 1: more like centralized finance, so supposedly defied decentralized finances like 317 00:19:17,480 --> 00:19:20,640 Speaker 1: an open source software protocol where you could stake your 318 00:19:20,640 --> 00:19:23,320 Speaker 1: tokens and you could earn rewards back. Where a c 319 00:19:23,520 --> 00:19:25,960 Speaker 1: FI is like a as a company, a centralized company 320 00:19:26,000 --> 00:19:28,080 Speaker 1: that's supposed to do that for you. And so I 321 00:19:28,200 --> 00:19:31,119 Speaker 1: give my tokens to this company, they invest them on 322 00:19:31,200 --> 00:19:34,200 Speaker 1: my behalf, and they give me a return back. Celsius 323 00:19:34,359 --> 00:19:36,359 Speaker 1: was a big one. Of course, Block five is a 324 00:19:36,400 --> 00:19:40,040 Speaker 1: big one. And I've you know, I've been outspoken against 325 00:19:40,119 --> 00:19:43,280 Speaker 1: these these uh for quite a while. UM I did 326 00:19:43,440 --> 00:19:46,399 Speaker 1: do some UH some ads for Block five back in 327 00:19:46,440 --> 00:19:48,439 Speaker 1: the day. It's been over two years since I decided 328 00:19:48,480 --> 00:19:50,439 Speaker 1: to walk away from all of that. I'm just not 329 00:19:50,480 --> 00:19:51,840 Speaker 1: a fan of it. I'm not a fan of the 330 00:19:52,000 --> 00:19:55,040 Speaker 1: risk and reward ratios of that, and so as an investor, 331 00:19:55,080 --> 00:19:57,919 Speaker 1: I'm always looking for what I call asymmetric returns. I 332 00:19:57,920 --> 00:20:01,160 Speaker 1: want something that gives me more upside than downside, right, 333 00:20:01,480 --> 00:20:05,480 Speaker 1: and so um, I think right now bitcoin is probably 334 00:20:05,480 --> 00:20:07,760 Speaker 1: still one of the best asymmetric opportunities that we have 335 00:20:07,800 --> 00:20:10,480 Speaker 1: in the world today. UM, I think there's an easy 336 00:20:10,720 --> 00:20:14,000 Speaker 1: hundred x upside in front of us, or it could 337 00:20:14,040 --> 00:20:15,520 Speaker 1: go to zero. I could lose it all, so that 338 00:20:15,520 --> 00:20:18,600 Speaker 1: would be a one x downside. I could lose everything, 339 00:20:18,960 --> 00:20:21,520 Speaker 1: or I have a one hundred x upside. I like 340 00:20:21,600 --> 00:20:25,560 Speaker 1: those odds. But when I'm giving my cryptocurrency or my 341 00:20:25,600 --> 00:20:29,720 Speaker 1: bitcoin to a platform like block fire Celsius, I'm potentially 342 00:20:29,840 --> 00:20:34,000 Speaker 1: risking it all. So I have a hundred percent risk 343 00:20:34,080 --> 00:20:39,640 Speaker 1: of loss with only a four or six percent upside return. 344 00:20:40,520 --> 00:20:43,560 Speaker 1: So a hundred percent on the downside with a six 345 00:20:43,640 --> 00:20:47,320 Speaker 1: percent on the upside, that doesn't sound good to me. 346 00:20:48,119 --> 00:20:50,320 Speaker 1: That's not the type of returns I'm looking for. I 347 00:20:50,359 --> 00:20:54,240 Speaker 1: want to risk six percent and have a hundred percent upside. 348 00:20:54,400 --> 00:20:55,840 Speaker 1: But they do it the other way. So I'm not 349 00:20:55,880 --> 00:20:59,560 Speaker 1: a fan of that. And unfortunately for people who use 350 00:20:59,560 --> 00:21:02,000 Speaker 1: selsie us and who use Block five, they had to 351 00:21:02,040 --> 00:21:04,720 Speaker 1: find that out the hard way. They did lose. I mean, 352 00:21:05,400 --> 00:21:07,840 Speaker 1: if you had funds on that, it's gone at this 353 00:21:07,880 --> 00:21:12,240 Speaker 1: point now. Uh, for Block five, it's not looking good 354 00:21:12,760 --> 00:21:17,159 Speaker 1: because Block five had all their money on on ft X, 355 00:21:17,640 --> 00:21:19,439 Speaker 1: And as I talked about before the commercial break, if 356 00:21:19,440 --> 00:21:20,560 Speaker 1: you had money on the f t X, it's not 357 00:21:20,600 --> 00:21:23,320 Speaker 1: looking good for you there. And so what happened with 358 00:21:23,359 --> 00:21:26,400 Speaker 1: Block five, and this is even a bigger scam. Block 359 00:21:26,480 --> 00:21:28,879 Speaker 1: five might have been okay on their own. Potentially they 360 00:21:28,920 --> 00:21:31,280 Speaker 1: had other offers to help build them out, which would 361 00:21:31,280 --> 00:21:34,600 Speaker 1: have helped save customer deposits. But when f t X, 362 00:21:34,640 --> 00:21:36,760 Speaker 1: when Sam Bankman Freed came in like the savior to 363 00:21:36,760 --> 00:21:39,480 Speaker 1: save the whole industry. He said, hey, block Fire, don't worry, 364 00:21:39,480 --> 00:21:40,919 Speaker 1: I got your back. I'll help you out. Here's what 365 00:21:40,920 --> 00:21:43,800 Speaker 1: we're gonna do, though, here's gonna do. What we're gonna 366 00:21:43,800 --> 00:21:46,920 Speaker 1: do is uh we f t X, me, Sam Bankman 367 00:21:46,960 --> 00:21:49,679 Speaker 1: Freed and ft X. We will guarantee your customer deposits. 368 00:21:51,040 --> 00:21:52,959 Speaker 1: We're not gonna give you any money for the equity. 369 00:21:53,000 --> 00:21:54,600 Speaker 1: For all the people that invested money in the company, 370 00:21:54,640 --> 00:21:56,600 Speaker 1: they're all screwed. But we're gonna take care of your customers. 371 00:21:56,600 --> 00:21:58,600 Speaker 1: Don't worry. But what we have to do in exchange 372 00:21:58,920 --> 00:22:01,960 Speaker 1: in order for us to to guarantee all that is 373 00:22:02,080 --> 00:22:05,080 Speaker 1: you need to now give us all your deposits. So 374 00:22:05,119 --> 00:22:07,639 Speaker 1: all those customer funds that that that block Fire was holding, 375 00:22:08,400 --> 00:22:09,879 Speaker 1: now you gotta give it to us. We'll hold it 376 00:22:09,920 --> 00:22:12,679 Speaker 1: for you though, and we're going to guarantee all those deposits. Now. 377 00:22:12,720 --> 00:22:16,720 Speaker 1: The shady shady shadiness of this is that SpFN alameter 378 00:22:16,960 --> 00:22:21,479 Speaker 1: already bankrupt at this point. They already knew this. You 379 00:22:21,520 --> 00:22:25,160 Speaker 1: didn't know this, but they already knew this. So they 380 00:22:25,280 --> 00:22:28,560 Speaker 1: fraudulently went out and pretended to be something that they weren't. 381 00:22:28,600 --> 00:22:31,639 Speaker 1: They made promises and guarantees that they couldn't live up to, 382 00:22:33,119 --> 00:22:35,680 Speaker 1: and they promised to take care of these uh customer 383 00:22:35,760 --> 00:22:39,760 Speaker 1: deposits in exchange for giving him to us unless holding him, 384 00:22:39,800 --> 00:22:41,880 Speaker 1: and they just stole those two. So those are gone. 385 00:22:41,920 --> 00:22:43,640 Speaker 1: And so unfortunately, if you had money on Block five, 386 00:22:44,200 --> 00:22:47,320 Speaker 1: then it was auction on FTXC, and unfortunately it's probably gone. 387 00:22:48,200 --> 00:22:51,639 Speaker 1: If you were with Celsius, there might still be a 388 00:22:51,840 --> 00:22:53,960 Speaker 1: ray of hope, a little sliver of hope. And I 389 00:22:53,960 --> 00:22:55,880 Speaker 1: don't want to give you false hope, but I've been 390 00:22:55,960 --> 00:22:58,440 Speaker 1: documented this. I'm covering it because if you have money there, 391 00:22:58,480 --> 00:23:00,760 Speaker 1: you have exposure there. I want you to know. But 392 00:23:01,880 --> 00:23:04,040 Speaker 1: there was a couple of different ways people had money 393 00:23:04,080 --> 00:23:07,200 Speaker 1: on Celsius. So one people had it just as storage, 394 00:23:07,280 --> 00:23:10,200 Speaker 1: so they're just holding my keys for me. Those people 395 00:23:10,960 --> 00:23:13,800 Speaker 1: have a decent chance of getting a good majority of 396 00:23:13,840 --> 00:23:18,320 Speaker 1: their money back. Then there was loan products, so I 397 00:23:18,359 --> 00:23:20,560 Speaker 1: was getting a loan from Celsius and they held a 398 00:23:20,600 --> 00:23:23,520 Speaker 1: bit of my cryptocurrency as collateral. And then there was 399 00:23:23,720 --> 00:23:26,120 Speaker 1: yield where I gave you my cryptocurrency and you gave 400 00:23:26,160 --> 00:23:29,400 Speaker 1: me a percentage back on that um. And so there's 401 00:23:29,680 --> 00:23:32,719 Speaker 1: differences there. I think the yield and the loan customers 402 00:23:33,240 --> 00:23:35,199 Speaker 1: might have a tough time, but there might still some 403 00:23:35,320 --> 00:23:38,080 Speaker 1: be some money there. Um. The big news this week 404 00:23:38,160 --> 00:23:42,480 Speaker 1: is that the U s courts approved a deadline for 405 00:23:42,560 --> 00:23:45,560 Speaker 1: Celsius customers to file proofs of claim. So, if you 406 00:23:45,680 --> 00:23:49,240 Speaker 1: had money on Celsius, they've given you a debt, They've 407 00:23:49,280 --> 00:23:52,840 Speaker 1: they've approved a a new deadline for you you to 408 00:23:53,040 --> 00:23:55,800 Speaker 1: file a proof of claim. So customers of the bankrupt 409 00:23:55,840 --> 00:24:02,440 Speaker 1: crypto lender have until January three to proofs of claim um. 410 00:24:02,480 --> 00:24:05,760 Speaker 1: And so if you had any money there, you need 411 00:24:05,800 --> 00:24:09,480 Speaker 1: to go check this out, all right, Just go onto 412 00:24:09,920 --> 00:24:12,560 Speaker 1: your favorite search engine and just google that US court 413 00:24:12,560 --> 00:24:15,480 Speaker 1: approves deadline for Celsius customers to file proof of claims, 414 00:24:16,000 --> 00:24:18,639 Speaker 1: but you have until January and so if you have 415 00:24:18,800 --> 00:24:21,560 Speaker 1: money there you can file it and hopefully you can 416 00:24:21,560 --> 00:24:23,680 Speaker 1: do it for free. You can claim by mail, by hand, 417 00:24:23,720 --> 00:24:25,560 Speaker 1: you can do it through their website. You can go 418 00:24:25,640 --> 00:24:28,680 Speaker 1: to Stratt oh S t R E T t O 419 00:24:28,960 --> 00:24:33,959 Speaker 1: Stretto's website and you can do it there. And you 420 00:24:34,000 --> 00:24:37,120 Speaker 1: need to get that claim in there. Now they might 421 00:24:37,160 --> 00:24:39,359 Speaker 1: already have your claim, but you need to make sure 422 00:24:39,960 --> 00:24:42,840 Speaker 1: because you want to get inline for some money back. 423 00:24:42,840 --> 00:24:44,280 Speaker 1: I'm not saying you're gonna get money back, but at 424 00:24:44,320 --> 00:24:47,520 Speaker 1: least there might be a chance. Now this is continuing 425 00:24:47,680 --> 00:24:51,200 Speaker 1: to get worse. So now ft X goes down, they 426 00:24:51,240 --> 00:24:54,840 Speaker 1: take block fives customers funds with them. They've also taken 427 00:24:54,840 --> 00:24:58,000 Speaker 1: a big chunk of money from Genesis. Now Genesis is 428 00:24:58,040 --> 00:25:02,000 Speaker 1: probably the biggest company you might never heard of. Genesis 429 00:25:02,040 --> 00:25:05,280 Speaker 1: provides these yield products for a lot of these front 430 00:25:05,280 --> 00:25:09,200 Speaker 1: and customers. So Gemini, which is another big cryptocurrency exchange 431 00:25:09,240 --> 00:25:13,600 Speaker 1: run by the Winkelvoss twins from Facebook fame, they have 432 00:25:13,680 --> 00:25:16,360 Speaker 1: an earned products. So you could park money with Gemini 433 00:25:16,480 --> 00:25:18,840 Speaker 1: and they would pay you a yield on that. I 434 00:25:18,880 --> 00:25:21,439 Speaker 1: believe they're paying eight percent on their earned product, but 435 00:25:21,480 --> 00:25:25,200 Speaker 1: it was actually Genesis that was doing that. And now 436 00:25:25,280 --> 00:25:28,600 Speaker 1: Genesis is having trouble because they had a bunch of 437 00:25:28,600 --> 00:25:32,760 Speaker 1: money parked on ft X that's now gone, and because 438 00:25:32,760 --> 00:25:35,639 Speaker 1: of that, they're not able to pay back the earned 439 00:25:35,680 --> 00:25:38,720 Speaker 1: products or the yield products. We can see that Genesis 440 00:25:38,720 --> 00:25:41,679 Speaker 1: halted a redemption shortly after revealing on November ten that 441 00:25:41,800 --> 00:25:44,159 Speaker 1: had a hundred and seventy five million dollars locked in 442 00:25:44,200 --> 00:25:50,000 Speaker 1: an f t X trading account, and now Genesis is scrambling. 443 00:25:50,040 --> 00:25:52,119 Speaker 1: They've spent the last several days seeking at least a 444 00:25:52,280 --> 00:25:58,200 Speaker 1: one billion dollar injection of fresh capital, but it doesn't 445 00:25:58,280 --> 00:26:01,080 Speaker 1: look like that's going super good. Doesn't look like it's 446 00:26:01,080 --> 00:26:02,320 Speaker 1: going super good at all. It says that they have 447 00:26:02,359 --> 00:26:05,879 Speaker 1: no plans to file bankruptcy yet. Our goal is to 448 00:26:05,920 --> 00:26:08,840 Speaker 1: resolve the current situation consentually without the need for any 449 00:26:08,840 --> 00:26:13,040 Speaker 1: bankruptcy filings. But the bigger problem is that Genesis is 450 00:26:13,080 --> 00:26:17,520 Speaker 1: a counterparty to many other players in the digital assets space, 451 00:26:18,600 --> 00:26:21,040 Speaker 1: so that's the problem. It's also gauged as as a 452 00:26:21,520 --> 00:26:26,360 Speaker 1: kind of a sign of the overall industries um strength. 453 00:26:27,800 --> 00:26:31,240 Speaker 1: If you had money on Gemini in that UM, you're 454 00:26:31,280 --> 00:26:35,600 Speaker 1: in limbo. The seven hundred million dollars of customers money 455 00:26:35,680 --> 00:26:39,639 Speaker 1: tied up in this, and there could be even more 456 00:26:39,880 --> 00:26:41,720 Speaker 1: contagion coming from this. I want to talk about that 457 00:26:41,920 --> 00:26:44,880 Speaker 1: more in a minute. The bigger risk and contagion we're 458 00:26:44,880 --> 00:26:47,639 Speaker 1: gonna talk about the Gray Scale Bitcoin Trust. I do 459 00:26:47,680 --> 00:26:49,000 Speaker 1: want to say a real quick before I take a 460 00:26:49,000 --> 00:26:54,639 Speaker 1: break that if you have money earning yield anywhere, I 461 00:26:54,640 --> 00:26:57,400 Speaker 1: would take it out. If you haven't lost it yet 462 00:26:57,440 --> 00:27:00,600 Speaker 1: by now, consider yourself lucky and get it out. It's 463 00:27:00,600 --> 00:27:03,080 Speaker 1: not worth the risk, and most likely this contagion is 464 00:27:03,119 --> 00:27:06,119 Speaker 1: going to take every urn yield type of product down, 465 00:27:06,760 --> 00:27:10,920 Speaker 1: and so pull your money out of that UM because 466 00:27:10,920 --> 00:27:13,240 Speaker 1: it's not looking good. But what does this mean for 467 00:27:13,359 --> 00:27:18,040 Speaker 1: Genesis and their partner companies Specifically, I'm talking about DCG 468 00:27:18,560 --> 00:27:23,400 Speaker 1: Digital Currency Group and the Gray Scale Bitcoin Trust, which 469 00:27:23,440 --> 00:27:29,159 Speaker 1: holds over six hundred and fifty thousands sift bitcoin, and 470 00:27:29,280 --> 00:27:32,640 Speaker 1: if that goes down, that could shake the entire industry. 471 00:27:32,720 --> 00:27:35,120 Speaker 1: So I want to talk about that, the potential, what 472 00:27:35,160 --> 00:27:38,639 Speaker 1: that means, why there's such a discount um, the potential risks, 473 00:27:38,640 --> 00:27:41,560 Speaker 1: who's betting on that um? And more. When I come 474 00:27:41,560 --> 00:27:43,080 Speaker 1: back in a minute. You're just tuning in. You're listening 475 00:27:43,080 --> 00:27:46,280 Speaker 1: to the Mark Mo Show talking about the Decentralized Revolution, 476 00:27:46,320 --> 00:27:48,840 Speaker 1: talking about some of the latest breaking news of the week. 477 00:27:49,040 --> 00:27:50,399 Speaker 1: I got a lot more to cover when I come back. 478 00:27:50,440 --> 00:27:52,600 Speaker 1: You don't want to miss it. We're back. Don't go away, 479 00:27:52,920 --> 00:27:54,520 Speaker 1: all right, welcome back. If you're just tuning in, you're 480 00:27:54,520 --> 00:27:56,480 Speaker 1: listening to the Mark Mo Show, we're talking about the 481 00:27:56,560 --> 00:27:59,439 Speaker 1: decent relized Revolution, and we're running through some of the 482 00:27:59,520 --> 00:28:03,000 Speaker 1: latest breaking, biggest news headlines of the week. And we're 483 00:28:03,000 --> 00:28:05,679 Speaker 1: talking about this crypto contagion that's going on and started 484 00:28:05,680 --> 00:28:08,560 Speaker 1: back in May, and it's just gotten bigger, bigger, bigger, bigger, bigger. 485 00:28:08,600 --> 00:28:11,000 Speaker 1: Took f t X down and now it's taking down 486 00:28:11,040 --> 00:28:12,840 Speaker 1: even some of the bigger players. And so we talked 487 00:28:12,880 --> 00:28:17,320 Speaker 1: about Genesis. Genesis had at least close to two hundred 488 00:28:17,359 --> 00:28:19,680 Speaker 1: million dollars of exposure to f t X that's now 489 00:28:19,720 --> 00:28:22,399 Speaker 1: thrown their whole plan into a tel spin and a 490 00:28:22,400 --> 00:28:25,800 Speaker 1: lot of people are fearing what comes next because Genesis 491 00:28:26,400 --> 00:28:30,919 Speaker 1: is a sister company to UH founding company DCG, Digital 492 00:28:30,960 --> 00:28:36,159 Speaker 1: Currency Group, and Digital Currency Group is also um responsible 493 00:28:36,200 --> 00:28:39,560 Speaker 1: for the Gray Scale Bitcoin trust. Now the Gray Scale 494 00:28:39,560 --> 00:28:42,720 Speaker 1: Bitcoin Trust has been away um I believe since twenty 495 00:28:42,880 --> 00:28:47,520 Speaker 1: fifteen to buy bitcoin through like a four oh one 496 00:28:47,600 --> 00:28:50,280 Speaker 1: K or mutual fund or like a regular stock account. 497 00:28:50,720 --> 00:28:52,280 Speaker 1: So if you have this one of these types of 498 00:28:52,320 --> 00:28:55,920 Speaker 1: retirement vehicles, you're not able to buy bitcoin directly, or 499 00:28:55,960 --> 00:28:58,920 Speaker 1: you weren't at least at that time. And so UM 500 00:28:58,960 --> 00:29:00,760 Speaker 1: this was formed as a trust and it was a 501 00:29:00,800 --> 00:29:03,400 Speaker 1: way that you could buy bitcoin or get access to 502 00:29:03,440 --> 00:29:07,360 Speaker 1: bitcoin's price exposure through that. When you buy into the 503 00:29:07,400 --> 00:29:09,760 Speaker 1: Gray Scale Bitcoin Trust or as it's called g BTC, 504 00:29:10,640 --> 00:29:13,480 Speaker 1: you don't actually own the bitcoin. The trust owns the bitcoin. 505 00:29:13,960 --> 00:29:17,320 Speaker 1: You have exposure to the price of bitcoin, sort of 506 00:29:17,320 --> 00:29:19,920 Speaker 1: like um, when you buy a gold ETF, you buy 507 00:29:19,920 --> 00:29:22,080 Speaker 1: the gold ETF, you don't actually own the gold. You 508 00:29:22,160 --> 00:29:25,400 Speaker 1: just own the e t F which supposedly owns gold, 509 00:29:25,400 --> 00:29:27,440 Speaker 1: and then you have exposure to the price of gold. 510 00:29:28,960 --> 00:29:30,720 Speaker 1: But the problem is that people are saying, well, shoot, 511 00:29:30,760 --> 00:29:34,720 Speaker 1: if if Genesis goes down, it could take out Gray 512 00:29:34,720 --> 00:29:37,240 Speaker 1: Scale Bitcoin Trust. And if it takes out Bitcoin Trust 513 00:29:37,280 --> 00:29:41,120 Speaker 1: and they're one, if they're forced to liquidate, what does 514 00:29:41,160 --> 00:29:43,560 Speaker 1: that do to the overall bitcoin and cryptocurrency market if 515 00:29:43,600 --> 00:29:47,080 Speaker 1: they have to sell six hif bitcoin and to what 516 00:29:47,200 --> 00:29:50,600 Speaker 1: happens to all the creditors, what happens to their creditors, 517 00:29:50,600 --> 00:29:55,480 Speaker 1: And so I want to talk about that briefly. Um 518 00:29:55,520 --> 00:29:58,959 Speaker 1: it said that, so Genesis already had to halt customer 519 00:29:59,000 --> 00:30:02,760 Speaker 1: with draws. Where did where talked about that? However, Genesis 520 00:30:03,440 --> 00:30:08,720 Speaker 1: does not directly affect g b TC all right, they 521 00:30:08,720 --> 00:30:12,160 Speaker 1: are separate. Even if Genesis is unable to raise liquidity 522 00:30:12,280 --> 00:30:15,360 Speaker 1: for its lending book, even if it files for bankruptcy, 523 00:30:15,480 --> 00:30:18,960 Speaker 1: the creditors that would go after the assets of Genesis 524 00:30:18,960 --> 00:30:22,040 Speaker 1: would have zero claim, no attachment to the g b 525 00:30:22,240 --> 00:30:27,000 Speaker 1: TC assets at all. Now, Gray Scale Investments, which manages 526 00:30:27,000 --> 00:30:30,720 Speaker 1: the g b TC Trust, and Genesis, they're both owned 527 00:30:30,760 --> 00:30:34,040 Speaker 1: by the same company d CG. But just because they're 528 00:30:34,080 --> 00:30:36,800 Speaker 1: owned by the same company doesn't mean they have cross 529 00:30:36,840 --> 00:30:41,600 Speaker 1: liability to each other. Now, if you have assets like 530 00:30:42,040 --> 00:30:45,480 Speaker 1: a business, like a car, like a house, like a 531 00:30:45,520 --> 00:30:48,360 Speaker 1: rental property, you should also have a structure like this 532 00:30:48,400 --> 00:30:50,200 Speaker 1: as well. So you're supposed to have these assets into 533 00:30:50,200 --> 00:30:54,120 Speaker 1: different structures, different entities, so there's no cross collaterization. So, 534 00:30:54,200 --> 00:30:57,920 Speaker 1: for example, I have like rental properties and they're in 535 00:30:58,160 --> 00:31:00,640 Speaker 1: separate entities. So if somebody works lip and fall and 536 00:31:00,640 --> 00:31:03,240 Speaker 1: get hurt there, they don't sue me and take everything 537 00:31:03,280 --> 00:31:06,200 Speaker 1: I own. My business is an entity over here, my 538 00:31:06,280 --> 00:31:08,640 Speaker 1: rental properties, and another entity over here, and so you 539 00:31:08,640 --> 00:31:11,800 Speaker 1: want to compartmentalize them. And that's exactly what they've done here. 540 00:31:12,160 --> 00:31:15,040 Speaker 1: And it says that the g btcs trust structure protects 541 00:31:15,040 --> 00:31:19,840 Speaker 1: its holders and remains ring fenced from failures within d 542 00:31:19,920 --> 00:31:24,160 Speaker 1: c G or the DCG group entities ring fence. That's 543 00:31:24,160 --> 00:31:26,160 Speaker 1: exactly what it's supposed to be, exactly what I've explained. 544 00:31:26,280 --> 00:31:29,040 Speaker 1: It sits over here and its own entity, and even 545 00:31:29,040 --> 00:31:31,880 Speaker 1: if DCG goes down, even if Genesis goes down, it 546 00:31:31,920 --> 00:31:37,840 Speaker 1: shouldn't have any effect on the trust. Okay, then what 547 00:31:37,920 --> 00:31:43,960 Speaker 1: about the trust specifically, why is it having so much trouble? Well, Currently, 548 00:31:44,040 --> 00:31:48,120 Speaker 1: GBTC trades at a massive about somewhere somewhere in the 549 00:31:48,240 --> 00:31:52,520 Speaker 1: range of forty five to fifty discount to the price 550 00:31:52,560 --> 00:31:57,240 Speaker 1: of the underlying bitcoin, which is pretty interesting. It's traded 551 00:31:57,240 --> 00:32:00,480 Speaker 1: out a premium before, meaning you would actually a more 552 00:32:00,640 --> 00:32:02,800 Speaker 1: to own bitcoin in the trust than you would own 553 00:32:02,840 --> 00:32:06,160 Speaker 1: it directly. Now it trades at a discount, and the 554 00:32:06,240 --> 00:32:09,080 Speaker 1: premium or the discount that we have now is because 555 00:32:09,560 --> 00:32:12,360 Speaker 1: of the market sentiment if people want to hold this 556 00:32:12,560 --> 00:32:14,800 Speaker 1: or not. Now, a couple of things have happened. One 557 00:32:15,440 --> 00:32:17,680 Speaker 1: I said earlier that when it first started, when the 558 00:32:17,720 --> 00:32:20,280 Speaker 1: when the bitcoin trust first started, you couldn't really own 559 00:32:20,320 --> 00:32:23,600 Speaker 1: bitcoin through a lot of these types of retirement accounts 560 00:32:23,600 --> 00:32:27,040 Speaker 1: for oh one case iras, etcetera. But now you can. 561 00:32:27,720 --> 00:32:30,440 Speaker 1: So now there's a lot of other companies that have 562 00:32:30,520 --> 00:32:33,920 Speaker 1: come up since that allow you to own it. So 563 00:32:34,000 --> 00:32:37,960 Speaker 1: for example, Unchanged Capital as a company that I work with, 564 00:32:38,320 --> 00:32:41,360 Speaker 1: and you can own bitcoin through an IRA or a 565 00:32:41,400 --> 00:32:44,840 Speaker 1: Wrath IRA through them, you don't need to buy the trust. 566 00:32:45,120 --> 00:32:48,040 Speaker 1: So the demand for this this type of a product 567 00:32:48,040 --> 00:32:50,240 Speaker 1: has come way down. The other thing is that you 568 00:32:50,280 --> 00:32:52,720 Speaker 1: don't actually own bitcoin, right, you just have exposure to 569 00:32:52,760 --> 00:32:58,040 Speaker 1: the price. Now the discount is for the risk that 570 00:32:58,080 --> 00:33:01,240 Speaker 1: you have for doing this. Of the risks, well, some 571 00:33:01,280 --> 00:33:03,600 Speaker 1: of the risks are that the Gray Scale Bitcoin Trust 572 00:33:03,680 --> 00:33:06,800 Speaker 1: charges you a fee to manage it. As a matter 573 00:33:06,840 --> 00:33:11,000 Speaker 1: of fact, they say that Grace the Gray Scale Trust 574 00:33:11,040 --> 00:33:15,360 Speaker 1: generates about three hundred million a year just in fees, 575 00:33:15,960 --> 00:33:17,760 Speaker 1: and so a lot of people are saying, well, you know, 576 00:33:17,880 --> 00:33:20,720 Speaker 1: if DCG goes down, or if Genesis goes down, they're 577 00:33:20,720 --> 00:33:23,920 Speaker 1: gonna shut down Gray Scale. Why would they shut that 578 00:33:24,000 --> 00:33:27,360 Speaker 1: business down? It's making three hundred million dollars a year. 579 00:33:28,080 --> 00:33:29,760 Speaker 1: If I had a business making three in a million year, 580 00:33:29,800 --> 00:33:32,640 Speaker 1: I wouldn't be wanting to shut that down, as I'm 581 00:33:32,640 --> 00:33:36,040 Speaker 1: sure they won't either. And so they generate that through fees. 582 00:33:36,440 --> 00:33:38,440 Speaker 1: And so if you own bitcoin through there, they take 583 00:33:38,440 --> 00:33:41,160 Speaker 1: about two percent of your money per year in fees, 584 00:33:41,480 --> 00:33:44,240 Speaker 1: which is expensive. Why would I want to pay that um? 585 00:33:44,320 --> 00:33:46,960 Speaker 1: And so if I own that share, I don't actually 586 00:33:47,000 --> 00:33:48,480 Speaker 1: own bitcoin. If I own bitcoin, I can go sell 587 00:33:48,520 --> 00:33:50,040 Speaker 1: it on the market at the market price, which at 588 00:33:50,040 --> 00:33:52,280 Speaker 1: the time of this recording is a sixteen thousand, one 589 00:33:52,720 --> 00:33:56,120 Speaker 1: thirty dollars. But if I own the trust, I can't. 590 00:33:56,160 --> 00:33:57,640 Speaker 1: I don't have hands out for the bitcom price. I 591 00:33:57,640 --> 00:34:00,160 Speaker 1: have to find someone to buy the share of my trust. 592 00:34:01,000 --> 00:34:02,360 Speaker 1: There's not a lot of people that want to buy 593 00:34:02,360 --> 00:34:05,320 Speaker 1: that right now. So someone's like, well, I ain't gonna 594 00:34:05,320 --> 00:34:07,720 Speaker 1: buy it for sixteen thousand, but I'll give you eight 595 00:34:07,760 --> 00:34:09,680 Speaker 1: grand for it. How about eight? Will you take eight? 596 00:34:09,960 --> 00:34:11,880 Speaker 1: And someone's like, well, shoot, I need my money, so 597 00:34:12,040 --> 00:34:13,920 Speaker 1: I guess I'll just take the eight. And that's what 598 00:34:13,960 --> 00:34:15,920 Speaker 1: provides the discount, and you get the discount for the 599 00:34:16,040 --> 00:34:18,319 Speaker 1: risk that's involved. So what are the risks? One? Like 600 00:34:18,360 --> 00:34:20,120 Speaker 1: I said, if they shut it down, I think that's 601 00:34:20,680 --> 00:34:23,359 Speaker 1: overblown because they're making three in a million a year. 602 00:34:23,360 --> 00:34:25,440 Speaker 1: Why would the want to shut it down. I think 603 00:34:26,239 --> 00:34:28,120 Speaker 1: what a lot of people may want to buy this 604 00:34:28,200 --> 00:34:31,680 Speaker 1: and hope for is that it gets back up or 605 00:34:31,800 --> 00:34:34,640 Speaker 1: closer to par, or back to even to what bitcoin is. 606 00:34:34,960 --> 00:34:38,440 Speaker 1: And so maybe you have like a big sovereign wealth fund, 607 00:34:38,480 --> 00:34:40,879 Speaker 1: you know, like a Saudi Arabia or some some big 608 00:34:40,880 --> 00:34:42,400 Speaker 1: fund that wants to just come in and buy the 609 00:34:42,440 --> 00:34:45,560 Speaker 1: whole thing out. That could be possible. If you're a big, 610 00:34:45,880 --> 00:34:49,360 Speaker 1: a big sovereign wealth fund. You can't just go buy 611 00:34:49,600 --> 00:34:53,000 Speaker 1: six hundred thousand bitcoin like they're just not available. You 612 00:34:53,040 --> 00:34:55,239 Speaker 1: just can't buy that many. So does this be a 613 00:34:55,239 --> 00:34:57,120 Speaker 1: way for some a big player like that to come 614 00:34:57,160 --> 00:34:59,560 Speaker 1: in and buy all this at one at once? And 615 00:34:59,560 --> 00:35:00,840 Speaker 1: if they did that, it could push it all the 616 00:35:00,880 --> 00:35:04,160 Speaker 1: back up to par. And so if I was holding 617 00:35:04,200 --> 00:35:06,560 Speaker 1: shares of this trust, not only would I get the 618 00:35:06,600 --> 00:35:09,960 Speaker 1: appreciation in whatever bitcoin did, but I would also get 619 00:35:10,000 --> 00:35:12,600 Speaker 1: the reverse back to what we call nav or net 620 00:35:12,680 --> 00:35:16,400 Speaker 1: asset valuation. And we see people are doing this, I 621 00:35:16,400 --> 00:35:19,600 Speaker 1: know people doing this. We see Cathy Wood's arc uh 622 00:35:19,760 --> 00:35:22,440 Speaker 1: invest buys one point five million in Gray Scale Bitcoin 623 00:35:22,480 --> 00:35:24,759 Speaker 1: Trust this week. The firm purchase the shares at a 624 00:35:24,840 --> 00:35:27,799 Speaker 1: record discount to their net asset value. Like I said, 625 00:35:27,800 --> 00:35:32,320 Speaker 1: it's about a fifty discount. Cathy Woods Arc Investment Management 626 00:35:32,360 --> 00:35:35,080 Speaker 1: bought a hundred and seventy six thousand shares or one 627 00:35:35,080 --> 00:35:37,759 Speaker 1: point five million, in Gray Scales Bitcoin Trust on Monday, 628 00:35:37,840 --> 00:35:40,839 Speaker 1: as the crypto markets slumped to a two year low um, 629 00:35:40,920 --> 00:35:46,720 Speaker 1: trading at discount to their nav net asset value. So, 630 00:35:46,960 --> 00:35:50,080 Speaker 1: you know, Cathy Wood is a very polarizing figure in 631 00:35:50,080 --> 00:35:52,839 Speaker 1: Wall Street. She did really really really good with her 632 00:35:52,960 --> 00:35:56,319 Speaker 1: fund when the markets did really really good. Since the 633 00:35:56,360 --> 00:35:59,960 Speaker 1: markets have sold off, her funds have done absolutely horrible. Now, 634 00:36:00,000 --> 00:36:03,279 Speaker 1: how if you're playing the long game, she could turn 635 00:36:03,280 --> 00:36:05,520 Speaker 1: out to be a genius. Right now, it hasn't done 636 00:36:05,560 --> 00:36:07,960 Speaker 1: too well. And what will happen with this trade? You 637 00:36:08,000 --> 00:36:12,000 Speaker 1: know time will tell, but it says has purchased Art 638 00:36:12,080 --> 00:36:15,000 Speaker 1: purchased three hundred thousand shares, where two point eight million 639 00:36:15,080 --> 00:36:18,640 Speaker 1: last week. So it purchased two point eight million last week, 640 00:36:18,680 --> 00:36:21,680 Speaker 1: another one point five million this week. The investment firm 641 00:36:21,719 --> 00:36:25,200 Speaker 1: now holds six point four million g BT shares worth 642 00:36:25,480 --> 00:36:29,200 Speaker 1: fifty three million, So she's not just buying a little bit. 643 00:36:29,200 --> 00:36:31,879 Speaker 1: She continues to add and add and add and add 644 00:36:32,280 --> 00:36:35,720 Speaker 1: fifty three million. So I would say that that probably 645 00:36:35,719 --> 00:36:38,680 Speaker 1: helps out a lot, because, let's say, if this continues 646 00:36:38,760 --> 00:36:42,200 Speaker 1: to go down, down, down, ARC potentially has the ability 647 00:36:42,239 --> 00:36:44,120 Speaker 1: to raise the money to buy this whole thing out. 648 00:36:44,120 --> 00:36:46,279 Speaker 1: They just go buy all the bitcoin and there had 649 00:36:45,680 --> 00:36:49,320 Speaker 1: a discount. If you had the money to buy it 650 00:36:49,320 --> 00:36:51,480 Speaker 1: would probably be a pretty good option. And that's what 651 00:36:51,520 --> 00:36:52,960 Speaker 1: a lot of the holders are betting for. That. I'm 652 00:36:52,960 --> 00:36:56,080 Speaker 1: sure that's what she's betting for. And if anybody wanted 653 00:36:56,080 --> 00:36:58,320 Speaker 1: to buy the bits woin bitcoin a gray scale trust, 654 00:36:58,480 --> 00:37:00,279 Speaker 1: they may be betting on the same thing. If you're 655 00:37:00,280 --> 00:37:01,839 Speaker 1: just tune in, you're listening to the Mark Moas Show, 656 00:37:01,840 --> 00:37:07,239 Speaker 1: we're talking about the latest breaking news in the finance 657 00:37:07,280 --> 00:37:11,840 Speaker 1: and the cryptocurrency space, talking about FTX and the fallout. Uh, 658 00:37:12,120 --> 00:37:13,920 Speaker 1: there's so much to cover. I got a whole lot, 659 00:37:14,200 --> 00:37:15,480 Speaker 1: a whole lot more to cover. When I come back, 660 00:37:15,480 --> 00:37:17,840 Speaker 1: I gotta take a short break. Um, don't go away, 661 00:37:17,960 --> 00:37:20,600 Speaker 1: I'll be right back with more, all right, welcome back. 662 00:37:20,600 --> 00:37:22,239 Speaker 1: If you're just tune in, you're listening to the Mark 663 00:37:22,360 --> 00:37:26,200 Speaker 1: Moa show. We're talking about the decentralized Revolution every week, 664 00:37:26,239 --> 00:37:31,000 Speaker 1: and we're talking about the latest breaking news in the space. 665 00:37:31,600 --> 00:37:34,800 Speaker 1: Uh it is. It is big. It's reaching every corner, 666 00:37:34,880 --> 00:37:39,680 Speaker 1: it's reaching millions of people, it's reaching all the big companies. Um. 667 00:37:39,719 --> 00:37:42,680 Speaker 1: You know, when things go good, you don't really think 668 00:37:42,719 --> 00:37:45,439 Speaker 1: about all the downsides, all the risk. It's only when 669 00:37:45,480 --> 00:37:48,160 Speaker 1: things go bad. As Warren Buffett would say, a rising 670 00:37:48,200 --> 00:37:51,440 Speaker 1: tide rises all boats. But it's only when the tide 671 00:37:51,440 --> 00:37:53,719 Speaker 1: goes out do you see who's swimming naked. And so 672 00:37:53,760 --> 00:37:56,239 Speaker 1: that's exactly where we're at here. You know, when things 673 00:37:56,239 --> 00:37:59,040 Speaker 1: are going good, everybody's friendly, everyone's having fun, everyone's laughing, 674 00:37:59,080 --> 00:38:01,799 Speaker 1: everyone feels rich. The wealth effect is in effect. But 675 00:38:02,520 --> 00:38:07,520 Speaker 1: when everyone starts losing money, than people are mad, people 676 00:38:07,560 --> 00:38:12,680 Speaker 1: are fighting, and more importantly, people want to point blame. Now. 677 00:38:12,680 --> 00:38:14,920 Speaker 1: I did a whole part talking about regulations that I 678 00:38:14,920 --> 00:38:17,759 Speaker 1: think could come and what that means. I am not 679 00:38:18,000 --> 00:38:20,479 Speaker 1: pro regulation. I think that we should be able to 680 00:38:20,560 --> 00:38:22,840 Speaker 1: put our money into whatever we want, and we should 681 00:38:22,880 --> 00:38:27,440 Speaker 1: take responsibility for ourselves. I've been saying a lot really 682 00:38:27,480 --> 00:38:32,080 Speaker 1: through UM both really what came through the pandemic UM 683 00:38:32,160 --> 00:38:35,839 Speaker 1: people being forced into taking vaccines UM also now through 684 00:38:35,880 --> 00:38:39,160 Speaker 1: the financial markets, the cryptocurrency markets. I've been saying that 685 00:38:39,239 --> 00:38:43,399 Speaker 1: I believe the age of personal responsibility is coming back now. 686 00:38:43,440 --> 00:38:46,120 Speaker 1: Mainstream media wants to tell you just listen to the experts. 687 00:38:47,440 --> 00:38:51,359 Speaker 1: During the pandemic, major news outlets even ran headlines to say, 688 00:38:51,520 --> 00:38:55,680 Speaker 1: don't do your own research. Don't And I think that 689 00:38:55,840 --> 00:38:58,839 Speaker 1: is the most idiotic thing that anybody could ever say. 690 00:38:58,920 --> 00:39:02,839 Speaker 1: It's up to you, period, It's up to you. Now 691 00:39:02,840 --> 00:39:03,920 Speaker 1: you don't. That doesn't mean you have to be This 692 00:39:04,160 --> 00:39:06,000 Speaker 1: doesn't mean you have to be the expert on everything, 693 00:39:06,360 --> 00:39:08,359 Speaker 1: but you need to know enough at least to go 694 00:39:08,520 --> 00:39:11,239 Speaker 1: find the right experts to listen to. Because at the 695 00:39:11,320 --> 00:39:16,120 Speaker 1: end of the day, it's your responsibility. If you're forced 696 00:39:16,120 --> 00:39:18,320 Speaker 1: to take a medication that gives you an adverse reaction, 697 00:39:19,520 --> 00:39:22,960 Speaker 1: that's your fault. You got to figure out who you 698 00:39:23,000 --> 00:39:26,000 Speaker 1: gotta trust. If you lose money by putting money into 699 00:39:26,080 --> 00:39:29,640 Speaker 1: some poor investment, that's on you. Now I get it, 700 00:39:29,800 --> 00:39:34,399 Speaker 1: like sometimes you relied to sometimes you were scammed, and 701 00:39:34,560 --> 00:39:38,120 Speaker 1: that's illegal and those people should pay UM. And we 702 00:39:38,200 --> 00:39:41,239 Speaker 1: have laws against that kind of stuff. But ultimately I 703 00:39:41,280 --> 00:39:43,960 Speaker 1: believe the age of personal responsibilities coming back. It should 704 00:39:43,960 --> 00:39:47,839 Speaker 1: come back. We all need to be responsible. Unfortunately we're 705 00:39:47,880 --> 00:39:50,120 Speaker 1: not quite there yet. And so some of the big 706 00:39:50,239 --> 00:39:54,480 Speaker 1: news headlines this week on top of this push for regulations. 707 00:39:54,800 --> 00:39:57,920 Speaker 1: Please government, any state, we need you to save us. Right. 708 00:39:58,560 --> 00:40:00,160 Speaker 1: I don't know what I'm doing. You needed to me 709 00:40:00,239 --> 00:40:02,080 Speaker 1: what I can do with my money, so you protect me. 710 00:40:03,160 --> 00:40:06,040 Speaker 1: On top of that, we see here headline Tom Brady, 711 00:40:06,360 --> 00:40:09,919 Speaker 1: Poor Tom Brady can't catch a break. His football team 712 00:40:09,960 --> 00:40:12,360 Speaker 1: is not doing any good, he's getting divorced, and he 713 00:40:12,480 --> 00:40:15,840 Speaker 1: just lost a ton of money in ft X. We 714 00:40:15,880 --> 00:40:20,080 Speaker 1: don't know how much, but estimates are somewhere well in 715 00:40:20,120 --> 00:40:25,399 Speaker 1: the eight figure numbers. So horrible football season, divorce um 716 00:40:25,640 --> 00:40:27,560 Speaker 1: and losing a ton of money in ft X. And 717 00:40:27,560 --> 00:40:30,759 Speaker 1: if that's not bad enough, now he's getting sued Tom 718 00:40:30,800 --> 00:40:34,640 Speaker 1: Brady and Steph Curry uh and ft X endorsements are 719 00:40:34,719 --> 00:40:38,760 Speaker 1: probed by Texas regulators, so not just sued by people, 720 00:40:39,200 --> 00:40:43,879 Speaker 1: but now Texas investigation investigators are trying to dig into 721 00:40:43,880 --> 00:40:47,920 Speaker 1: this as well for what's for looking at whether endorsements 722 00:40:48,080 --> 00:40:53,120 Speaker 1: violated security laws. So it says here Tom Brady, the 723 00:40:53,160 --> 00:40:56,520 Speaker 1: Golden State Warriors Steph Curry are among the celebrities that 724 00:40:56,520 --> 00:41:00,759 Speaker 1: a Texas regulators investigating for potential securities law violation tied 725 00:41:00,800 --> 00:41:05,839 Speaker 1: to the promotions of crypto exchange f t X. Mm hmmm, 726 00:41:06,080 --> 00:41:08,319 Speaker 1: that's not good. We're taking a close look at them, 727 00:41:08,400 --> 00:41:13,200 Speaker 1: Rotunda said Texas State Securities Board. It says, though the 728 00:41:13,280 --> 00:41:15,960 Speaker 1: stars endorsements aren't the most immediate priority, there's still a 729 00:41:16,000 --> 00:41:19,040 Speaker 1: focus in the regulators larger probe into the ft X collapse, 730 00:41:19,080 --> 00:41:22,760 Speaker 1: he said. Um It says that even before the collapse 731 00:41:22,760 --> 00:41:25,440 Speaker 1: of the us UM Securities and Exchange Commission was cracking 732 00:41:25,480 --> 00:41:30,640 Speaker 1: down on plugs without proper disclosures, so they have to 733 00:41:30,640 --> 00:41:34,279 Speaker 1: have proper disclosures. But the problem is is like are 734 00:41:34,360 --> 00:41:39,640 Speaker 1: they have they done the proper disclosures and also are 735 00:41:39,719 --> 00:41:44,879 Speaker 1: they saying the right things so we can see here 736 00:41:44,960 --> 00:41:50,680 Speaker 1: for example, UM, if a celebrity says like something like 737 00:41:50,960 --> 00:41:53,120 Speaker 1: in the endorsement, I've looked into this investment and it's 738 00:41:53,160 --> 00:41:55,000 Speaker 1: terrific and you ought to put your money into it, 739 00:41:55,719 --> 00:41:58,319 Speaker 1: but they haven't really looked into it, then that would 740 00:41:58,320 --> 00:42:01,680 Speaker 1: be a misrepresentation. So even there, they're getting paid to 741 00:42:01,680 --> 00:42:03,880 Speaker 1: say something and most likely they're probably given the script 742 00:42:03,920 --> 00:42:06,640 Speaker 1: to say, UM, and they were probably giving the script 743 00:42:06,640 --> 00:42:09,120 Speaker 1: to say and they probably believe the company's legal team 744 00:42:09,160 --> 00:42:11,880 Speaker 1: look through it. They still have to be responsible for 745 00:42:11,880 --> 00:42:14,600 Speaker 1: what they're saying. They should probably have their own attorney 746 00:42:14,680 --> 00:42:16,839 Speaker 1: or lawyer look at that. So if they say I've 747 00:42:16,840 --> 00:42:18,440 Speaker 1: looked into it, it's great, it's terrific. You should put 748 00:42:18,440 --> 00:42:20,560 Speaker 1: your money to it, but they didn't, then that would 749 00:42:20,560 --> 00:42:26,160 Speaker 1: be a misrepresentation. That's a problem. UM. It says here 750 00:42:26,239 --> 00:42:30,160 Speaker 1: that they also, on top of, like I said, the regulators, 751 00:42:30,200 --> 00:42:33,520 Speaker 1: they also are now defendants in a class action lawsuit. 752 00:42:34,480 --> 00:42:36,959 Speaker 1: So now the regulators look into it, but we also 753 00:42:37,040 --> 00:42:41,040 Speaker 1: have this class action lawsuit UM basically going after Tom 754 00:42:41,080 --> 00:42:46,440 Speaker 1: Brady and Steph Curry as well. There's thousands, if not 755 00:42:46,680 --> 00:42:51,120 Speaker 1: millions of consumers nationwide that believed they were defrauded and 756 00:42:51,239 --> 00:42:57,640 Speaker 1: pulled into this investment because of these UM stars Brady Curry, 757 00:42:57,800 --> 00:43:04,440 Speaker 1: Gizl Buncheon and Shaquille o'nee ill two. I think this 758 00:43:04,520 --> 00:43:07,799 Speaker 1: is ridiculous. I think if you put your money into 759 00:43:07,840 --> 00:43:11,239 Speaker 1: something because somebody on TV said, like a star like 760 00:43:11,280 --> 00:43:13,719 Speaker 1: a Tom Brady or Shaquille O'Neil said that they're in it, 761 00:43:13,800 --> 00:43:15,719 Speaker 1: and you put your money into it, that's on you. 762 00:43:17,160 --> 00:43:20,200 Speaker 1: That's on you. But I've also had to learn that, 763 00:43:20,600 --> 00:43:22,319 Speaker 1: you know, I have to live in the world that 764 00:43:22,360 --> 00:43:24,279 Speaker 1: we're in, not as I think it should be, not 765 00:43:24,400 --> 00:43:26,480 Speaker 1: as I wanted to be, but as it is, and 766 00:43:26,560 --> 00:43:28,560 Speaker 1: as it is. This is, this is what's going on now. 767 00:43:28,600 --> 00:43:31,640 Speaker 1: We can see here. If what's being market is deemed 768 00:43:31,640 --> 00:43:34,080 Speaker 1: to be a security they're basically doing something that may 769 00:43:34,200 --> 00:43:39,960 Speaker 1: very well violate state security laws. The attorney said, we 770 00:43:40,000 --> 00:43:45,440 Speaker 1: can see here. Um, poor Kim Kardashian. Kim Kardashian had 771 00:43:45,440 --> 00:43:48,640 Speaker 1: to pay a big fine. The sec UM enforced actions 772 00:43:48,680 --> 00:43:53,080 Speaker 1: against against Kim Kardashian. Um they made. They ruled that 773 00:43:53,120 --> 00:43:56,399 Speaker 1: she had to pay one point to six million one 774 00:43:56,640 --> 00:43:59,799 Speaker 1: point six million to settle allegations that she broke securities 775 00:43:59,840 --> 00:44:02,880 Speaker 1: rule is by promoting a crypto token on her Instagram 776 00:44:02,880 --> 00:44:06,759 Speaker 1: without disclosing to her followers that she was paid to 777 00:44:06,880 --> 00:44:12,759 Speaker 1: pitch it. I mean, this is just it's completely ridiculous. 778 00:44:12,760 --> 00:44:15,399 Speaker 1: In my opinion, it's a complete waste of time by 779 00:44:15,600 --> 00:44:20,200 Speaker 1: taxpayers money in the sec If you don't know by 780 00:44:20,280 --> 00:44:24,640 Speaker 1: now that influencers on Instagram are promoting products they're paid 781 00:44:24,680 --> 00:44:27,319 Speaker 1: to promote. Then I don't know what to say about you, 782 00:44:28,680 --> 00:44:32,960 Speaker 1: like really, like that's the whole model. You build up 783 00:44:32,960 --> 00:44:35,719 Speaker 1: a big following on social media and then you're an 784 00:44:35,840 --> 00:44:39,600 Speaker 1: quote unquote influencer. Everybody knows that Kim Kardashian is like 785 00:44:39,640 --> 00:44:43,239 Speaker 1: the biggest influencer on Instagram. Everybody knows that they've known 786 00:44:43,239 --> 00:44:45,359 Speaker 1: that for like whatever, I don't know, five or six years. 787 00:44:45,360 --> 00:44:50,760 Speaker 1: At least, that's the model. The fact that she didn't 788 00:44:50,800 --> 00:44:54,920 Speaker 1: tell someone how much she was paid, it is ridiculous. 789 00:44:55,680 --> 00:44:57,440 Speaker 1: But she she had. She had to pay up one 790 00:44:57,440 --> 00:44:59,279 Speaker 1: point two six millions. She had to pay to the 791 00:44:59,360 --> 00:45:03,120 Speaker 1: SEC to set all that. Now, Sam Bankman freed, who 792 00:45:03,160 --> 00:45:06,040 Speaker 1: just told ten billion dollars you know, never mind that 793 00:45:06,120 --> 00:45:08,920 Speaker 1: he's still walking around free. But oh, that Kim Kardashian, 794 00:45:09,000 --> 00:45:11,080 Speaker 1: we better take her money because she didn't tell people 795 00:45:11,120 --> 00:45:16,040 Speaker 1: on Instagram that she was paid to promote something, I mean, 796 00:45:16,080 --> 00:45:18,400 Speaker 1: assist in sanity. I don't know. I don't know if 797 00:45:18,400 --> 00:45:20,360 Speaker 1: they're going to use the same thing with Tom Brady 798 00:45:20,400 --> 00:45:23,080 Speaker 1: and Steph Curry. I mean, did they not disclose how 799 00:45:23,160 --> 00:45:26,520 Speaker 1: much they were paid? I mean, obviously they're in a commercial. 800 00:45:28,680 --> 00:45:30,600 Speaker 1: Do you think people are doing these commercials on TV 801 00:45:30,680 --> 00:45:34,279 Speaker 1: without getting paid. Do we really need the FDC. I'm 802 00:45:34,320 --> 00:45:37,080 Speaker 1: sorry the SEC to go after these people because they 803 00:45:37,080 --> 00:45:39,480 Speaker 1: didn't tell us they were getting paid as a spokesperson. 804 00:45:40,200 --> 00:45:43,919 Speaker 1: We know that they're on a commercial. That's what they do, 805 00:45:44,200 --> 00:45:47,360 Speaker 1: that's how this works. And furthermore, am I supposed to 806 00:45:47,520 --> 00:45:51,279 Speaker 1: defer my responsibility to them? Well? Tom Brady told me 807 00:45:51,360 --> 00:45:54,080 Speaker 1: to put my money into this thing because he's some 808 00:45:54,160 --> 00:45:58,120 Speaker 1: big investment grew. I mean, come on, this insanity needs 809 00:45:58,160 --> 00:46:02,239 Speaker 1: to stop. And meanwhile, like I said, you have a 810 00:46:02,280 --> 00:46:07,360 Speaker 1: real criminal, Sam Bankmin Freed who literally posted on Twitter 811 00:46:08,200 --> 00:46:12,400 Speaker 1: days before he froze. I'm not gonna say Frozen stole 812 00:46:12,640 --> 00:46:16,120 Speaker 1: all your money. Posted on Twitter days before all the 813 00:46:16,160 --> 00:46:18,680 Speaker 1: money is there. We have all the money for the customers. 814 00:46:18,800 --> 00:46:22,439 Speaker 1: Will return every customer's money. He said that, the head 815 00:46:22,480 --> 00:46:25,480 Speaker 1: of that company said that before he stole it all, 816 00:46:25,520 --> 00:46:28,759 Speaker 1: and he's still walking around a freeman. But oh, Kim Kardashian, 817 00:46:29,640 --> 00:46:32,520 Speaker 1: she promoted something on on on Instagram and didn't tell 818 00:46:32,600 --> 00:46:34,919 Speaker 1: us that she got paid for it, so we're gonna 819 00:46:34,960 --> 00:46:38,160 Speaker 1: go after her. It's insanity. Like I said, you can 820 00:46:38,200 --> 00:46:41,560 Speaker 1: tell the state of the government by how they prosecute crimes. 821 00:46:42,120 --> 00:46:44,239 Speaker 1: They don't care if you steal from each other, just 822 00:46:44,280 --> 00:46:46,920 Speaker 1: don't steal from them. You're listening to The Markma Show 823 00:46:47,640 --> 00:46:49,279 Speaker 1: breaking down the latest news, and that's what I got 824 00:46:49,280 --> 00:46:50,880 Speaker 1: for you today. Thanks for listening.