WEBVTT - The Mark Moss Show Nov 30, 2022 0:00:01.639 --> 0:00:03.960 Hello, and welcome back to another episode of the Mark 0:00:04.080 --> 0:00:06.960 Moa Show, where we talk about the decentralized revolution, the 0:00:06.960 --> 0:00:10.160 way the world is changing through the lens of politics, finance, 0:00:10.240 --> 0:00:13.080 and technology, and of course I try to always bring 0:00:13.119 --> 0:00:15.600 to you some education that helps you see the world 0:00:15.600 --> 0:00:18.840 a little bit differently, understand these deep complex issues a 0:00:18.840 --> 0:00:21.439 little bit more simple so you can understand them. Some 0:00:21.480 --> 0:00:23.240 of the latest breaking news so you know what's going on, 0:00:23.280 --> 0:00:25.959 and of course some interesting guests, and I want to 0:00:26.000 --> 0:00:28.520 talk about some of the big news headlines that have 0:00:28.560 --> 0:00:31.120 been going over this week, because oh boy, if you're 0:00:31.160 --> 0:00:33.400 not paying attention like I am every day, you are 0:00:33.440 --> 0:00:38.160 not able to keep up because the world is changing really, really, 0:00:38.159 --> 0:00:41.040 really fast. Now. Something I've been talking about at length 0:00:41.159 --> 0:00:45.080 is this FTX situation blowing up, which of course is 0:00:45.120 --> 0:00:49.320 important because it's literally changing the face of cryptocurrency as 0:00:49.360 --> 0:00:52.040 we know it, not just cryptocurrency. I think it's going 0:00:52.120 --> 0:00:54.920 to change the face of UH investing, it's going to 0:00:55.040 --> 0:00:59.760 change the face of regulations in a big way. But 0:00:59.800 --> 0:01:02.840 I also know that UM tens of billions of dollars, 0:01:02.840 --> 0:01:07.080 potentially hundreds of thousands of Americans were really impacted by this. 0:01:07.280 --> 0:01:09.640 Maybe millions of Americans. I don't know the exact number 0:01:09.640 --> 0:01:11.119 of customers they have that will all come out through 0:01:11.120 --> 0:01:14.080 the bankruptcy court. But ft X, the firm went down, 0:01:14.800 --> 0:01:18.040 Uh I want to say taking customers funds with them, 0:01:18.080 --> 0:01:22.320 which it was, but I'd even say stealing customers funds. 0:01:22.680 --> 0:01:24.240 And unfortunately a lot of people lost a lot of 0:01:24.240 --> 0:01:27.520 money and some people lost everything and it's unfortunate. Um, 0:01:27.560 --> 0:01:31.319 and not just people but businesses and corporations and investment funds. 0:01:31.760 --> 0:01:36.119 I mean, it took down everybody. And so they filed 0:01:36.160 --> 0:01:39.880 for for chapter eleven through for bankruptcy. And so there's 0:01:39.920 --> 0:01:42.000 some things going on that that I want to talk 0:01:42.040 --> 0:01:43.800 about this week that you need to be aware of, 0:01:43.920 --> 0:01:47.280 especially uh, well, if you're in the cryptocurrency space at all, 0:01:47.319 --> 0:01:49.000 you need to be aware of these. If you had 0:01:49.120 --> 0:01:51.240 money there, then you need to be aware of these 0:01:51.280 --> 0:01:54.280 as well. So if you're anywhere in the cryptocurrency space 0:01:54.360 --> 0:01:57.520 or were, and this probably applies to you. But we 0:01:57.520 --> 0:02:00.600 we know that the like I said, they went chapter eleven. 0:02:00.600 --> 0:02:02.720 They've got an attorney now that's kind of running them 0:02:02.720 --> 0:02:07.600 through the bankruptcy court. And man, it is shocking what 0:02:07.760 --> 0:02:09.679 is coming out we see here says that f t 0:02:09.840 --> 0:02:14.440 X lawyer says that substantial amount of crypto of the 0:02:14.440 --> 0:02:21.920 crypto firms assets are stolen or missing and so um. 0:02:21.960 --> 0:02:24.480 You know, in bankruptcy they kind of change out the management. 0:02:24.520 --> 0:02:26.120 They bring in a different team, a steering team to 0:02:26.160 --> 0:02:28.120 kind of to kind of run them through this. And 0:02:28.160 --> 0:02:30.160 we see here says that that quote f t X 0:02:30.200 --> 0:02:35.440 was in the control of inexperienced and unsophisticated individuals and 0:02:35.560 --> 0:02:40.520 some or all of them were compromised individuals. End quote 0:02:41.560 --> 0:02:45.000 says James Brawley, Bromley counsel to f t XS new 0:02:45.040 --> 0:02:50.280 management boy, talk about throwing them under the bus. It 0:02:50.320 --> 0:02:55.000 was in the control of inexperienced and unsophisticated individuals and 0:02:55.000 --> 0:03:01.160 they were compromised. What does that mean? Well, Sam Bankman Freed, 0:03:01.240 --> 0:03:04.639 the founder, was supposedly the wonder kid. He was supposedly 0:03:04.639 --> 0:03:06.760 the smartest guy in the world. He was the one 0:03:06.800 --> 0:03:09.400 on stage with Bill Clinton. He was on the stage 0:03:09.760 --> 0:03:15.280 with a rubbing shoulders with the most advanced regulators from 0:03:15.280 --> 0:03:19.960 the SEC, from the cftc UH, from the Financial Services Committee, 0:03:20.040 --> 0:03:23.800 like Maxine Waters taking pictures Buddy, Buddy. He was being 0:03:24.400 --> 0:03:27.320 going into Washington, d C. On a very regular basis 0:03:27.520 --> 0:03:30.880 to set all new regulations and set all new policies 0:03:30.880 --> 0:03:34.320 on the entire industry. He was the guy. But it 0:03:34.320 --> 0:03:37.480 says right here it was in the control, in control 0:03:37.520 --> 0:03:44.720 of inexperienced and unsophisticated individuals that were compromised. So how 0:03:44.920 --> 0:03:48.400 is it that the that the guy Sam Bankman freed SPF, 0:03:48.440 --> 0:03:52.920 the guy who the regulators were bringing up the Biden 0:03:52.960 --> 0:03:57.440 administration was listening to, that was responsible to put policies 0:03:57.560 --> 0:04:04.800 in place, was actually unsophisticated and he was compromised. How 0:04:04.880 --> 0:04:09.880 was he compromised? Well, we do know that supposedly his 0:04:10.120 --> 0:04:12.920 entire goal, which everything was alive, So we don't really 0:04:12.920 --> 0:04:16.479 know what to believe. But supposedly he said he didn't 0:04:16.480 --> 0:04:19.400 care about money. Supposedly he just wanted to give all 0:04:19.440 --> 0:04:21.000 his money away to good and he did. He gave 0:04:21.040 --> 0:04:24.960 a lot of away. Um. He gave forty million, about 0:04:24.960 --> 0:04:28.320 thirty eight million dollars to the Democratic Party for the 0:04:28.320 --> 0:04:31.159 mid terms, and not just the Democratic Party but too 0:04:31.640 --> 0:04:36.080 heavy progressives in the Democratic Party. He was Biden's second 0:04:36.160 --> 0:04:39.960 largest donor and last presidential election. Um he wanted to 0:04:40.000 --> 0:04:43.240 give a billion dollars to the Democrats for the next 0:04:43.279 --> 0:04:50.040 presidential election eighteen million for COVID pandemic um planning, and 0:04:50.080 --> 0:04:51.880 so it wasn't just a little bit of money, it 0:04:51.960 --> 0:04:53.760 was a lot of money. He was in bed with 0:04:53.839 --> 0:04:58.200 the world that comic Forum um and so maybe that's 0:04:58.200 --> 0:05:02.080 what they're talking about as comprised individuals, is what they say. 0:05:02.120 --> 0:05:04.440 But it says here quote what we have here is 0:05:04.480 --> 0:05:08.800 a worldwide international organization, but which was run as a 0:05:08.960 --> 0:05:14.159 personal fiefdom of Sam Bankman Freed. Mr Bromley said, so, 0:05:14.400 --> 0:05:18.600 if you know anything about businesses like corporations, you know 0:05:18.800 --> 0:05:21.520 that once you start getting into corporations, you have things 0:05:21.560 --> 0:05:25.920 like corporate law, and then you have certain things that 0:05:25.960 --> 0:05:29.360 have to be done and you can't run them like 0:05:29.400 --> 0:05:33.359 a personal fifdom. They have something called com mingling of funds, 0:05:33.400 --> 0:05:36.120 and that means that your businesses are supposed to be 0:05:36.160 --> 0:05:39.160 separate from your personal and your businesses are supposed to 0:05:39.160 --> 0:05:41.640 be separate from each other as well. We know that 0:05:41.680 --> 0:05:44.880 when the bankruptcy, when the when the bankrupty attorney went 0:05:44.880 --> 0:05:47.440 in there to kind of figure this out, which, by 0:05:47.480 --> 0:05:50.640 the way, he was in charge of the largest kind 0:05:50.640 --> 0:05:54.880 of scandal bankruptcy and history, the Enron scandal. And he's 0:05:54.920 --> 0:05:56.560 now working on this one. He said, this is the 0:05:56.560 --> 0:06:01.200 worst one he's ever seen in his career. And they 0:06:01.360 --> 0:06:04.159 you know, there are thirty thirty two billion dollar company, 0:06:04.200 --> 0:06:07.800 two different companies, Alameda and f t X, and they 0:06:07.920 --> 0:06:11.799 ran them like all out of one account. Customer funds 0:06:11.839 --> 0:06:16.000 and deposits and investor funds and proceeds all just run 0:06:16.040 --> 0:06:18.440 out of one account, with no ledger to even break 0:06:18.480 --> 0:06:22.000 down who this belonged to, which is why it says 0:06:22.000 --> 0:06:24.360 here a worldwide international organization, but which was run as 0:06:24.400 --> 0:06:28.000 a personal fiefdom of Sam Bankman freed. That's illegal. It's 0:06:28.040 --> 0:06:31.080 highly illegal. The Washington Journal has reported that f t 0:06:31.240 --> 0:06:35.480 X was a chaotic mess of corporate entities, customer assets, 0:06:35.560 --> 0:06:40.360 and Mr Bankman freed himself almost from the firm's inception, 0:06:40.720 --> 0:06:43.080 so he ran this just as his personal slush fund, 0:06:44.320 --> 0:06:49.320 including all his political donations. That's all illegal. F t 0:06:49.600 --> 0:06:52.479 X as quote one of the most abrupt and difficult 0:06:52.480 --> 0:06:54.559 collapses in the history of corporate America and the history 0:06:54.560 --> 0:06:58.880 of corporate entities around the world. End quote. This is 0:06:58.880 --> 0:07:01.279 a big deal. But what's going to happen out of 0:07:01.279 --> 0:07:04.719 it is it's a big deal. These customers, they lost 0:07:04.760 --> 0:07:09.560 their money. Now it's in bankruptcy court? Will the Democratic 0:07:09.600 --> 0:07:13.000 Party give any of that money back? When you are 0:07:13.080 --> 0:07:17.720 a politician running and you're soliciting campaign contributions, you have 0:07:17.840 --> 0:07:21.520 a very very very high bar that those contributions are 0:07:21.520 --> 0:07:25.680 supposed to match. As a matter of fact, we know 0:07:25.800 --> 0:07:32.640 that Denis to Susa, who's a conservative filmmaker. Um, he 0:07:32.640 --> 0:07:38.400 he got in trouble for taking a small amount Susan, 0:07:39.480 --> 0:07:45.160 Let's see how much did he see? I would here 0:07:45.240 --> 0:07:49.520 sentenced Manhatto Court to five I should have looked this 0:07:49.600 --> 0:07:53.200 up ahead of time, um. Denis to Susan sentence in 0:07:53.240 --> 0:07:56.920 Manhattan Federal Court to five years of probation for campaign 0:07:57.240 --> 0:08:03.080 finance fraud. Denista sus attempted to illegally contribute over ten 0:08:03.120 --> 0:08:07.680 thousand dollars to a Senate campaign, willfully undermining the integrity 0:08:07.680 --> 0:08:10.400 of the campaign finance process. Like many others before him, 0:08:10.440 --> 0:08:12.680 all political stripes. He has to answer for his crime 0:08:12.720 --> 0:08:17.480 here with a felony conviction. So how dare he? In 0:08:17.520 --> 0:08:22.560 the two thousand twelve election, um it limited campaign contributions 0:08:22.560 --> 0:08:26.640 to five thousand dollars from any individual to one candidate, 0:08:27.240 --> 0:08:30.240 But in March of two thousand twelve, just Susan contributed 0:08:30.280 --> 0:08:33.440 ten thousand dollars to the Senate campaign of winning Wendy 0:08:33.520 --> 0:08:37.640 long On behalf of himself and his wife, agreeing in 0:08:37.679 --> 0:08:40.400 writing to attribute the contribution as five thousand from his 0:08:40.480 --> 0:08:51.559 wife and five thousand from him. Um, so you can 0:08:51.559 --> 0:08:55.640 only contribute five thousand, but he gave ten five thousand 0:08:55.720 --> 0:08:58.320 from him five thousand his wife, which they thought would pass, 0:08:58.640 --> 0:09:01.680 but nope, they did and he got five years of 0:09:01.760 --> 0:09:05.280 campaign fraud. Now, what about the thirty eight million that 0:09:05.400 --> 0:09:09.000 was just given to Democrats? Where did that money come from? 0:09:09.120 --> 0:09:11.959 Is there going to be any scrutiny to that? I'd 0:09:11.960 --> 0:09:14.040 sure like to know. I want to talk now about 0:09:14.080 --> 0:09:16.720 what's going to happen with customer funds. Will customers get 0:09:16.760 --> 0:09:19.280 any of their money back? And more important, they also 0:09:19.280 --> 0:09:21.440 we're talking about what did they actually do with that 0:09:21.520 --> 0:09:23.200 money To'll be back with all that and more in 0:09:23.200 --> 0:09:24.640 a minute. If you're just tuning in, you're listening to 0:09:24.679 --> 0:09:27.520 the Mark Moss Show breaking down the latest breaking news 0:09:27.559 --> 0:09:29.720 in the cryptocurrency space this week. I'll be back with 0:09:29.760 --> 0:09:31.839 all that and more in a minute, So don't go away. 0:09:32.000 --> 0:09:39.400 I'll be right back all right. If you're just tuning in, 0:09:39.440 --> 0:09:41.640 you're listening to the Mark Moa show. We're talking about 0:09:42.840 --> 0:09:46.079 the latest breaking news around the Sam Bankman freed f 0:09:46.240 --> 0:09:49.760 t X debacle. We'll just call it that, and it's 0:09:49.840 --> 0:09:54.040 it's it's tragic. Uh, it's horrible, and I feel bad 0:09:54.040 --> 0:09:56.640 for anybody caught up in this mess. And if you're 0:09:56.640 --> 0:09:59.199 anywhere in the cryptocurrency space, you're probably caught up because 0:09:59.200 --> 0:10:01.000 there's contagiou and going all over. I want to talk 0:10:01.040 --> 0:10:04.200 about that other potential risks that there may be coming 0:10:04.200 --> 0:10:05.640 down the pipe that you need to be aware of. 0:10:05.640 --> 0:10:07.600 Like I said, if you're anywhere in the cryptocurrency space, 0:10:07.600 --> 0:10:09.160 you don't know about this because it's set off just 0:10:09.240 --> 0:10:12.640 a series of dominoes. The first thing I'd say is 0:10:12.679 --> 0:10:15.680 that you know there's a headline from Walster Journal saying, 0:10:15.720 --> 0:10:20.520 well the FTX crypto customers ever see their money again? 0:10:23.000 --> 0:10:26.560 And unfortunately I hate to be the bearer of bad news, 0:10:27.160 --> 0:10:31.120 but I think the answer is probably no. Fd X 0:10:31.160 --> 0:10:35.400 file for bankruptcy on November eleven, um the the attorney 0:10:35.440 --> 0:10:39.000 for the bankruptcy says, quote, only a fraction of FTX 0:10:39.040 --> 0:10:42.000 digital assets have been located and secured, but we know 0:10:42.120 --> 0:10:45.680 that they have managed to find somewhere about a billion 0:10:45.720 --> 0:10:51.680 dollars of assets. The problem with that is that the 0:10:51.800 --> 0:10:57.360 creditors are owed over three billion, so there's not even 0:10:57.400 --> 0:10:59.760 a third of the money the creditors need, and so 0:10:59.840 --> 0:11:02.680 the creditors are going to be first in seniority to 0:11:02.679 --> 0:11:09.320 get their money back. You, as a depositor, have have 0:11:09.360 --> 0:11:11.520 no recourse. You're at the end of the line. And 0:11:11.559 --> 0:11:14.040 so what we know is that they've only been able 0:11:14.080 --> 0:11:16.080 to find about a third of what the creditors are owed. 0:11:16.160 --> 0:11:18.600 My guess is actually probably even way less than that. 0:11:19.240 --> 0:11:21.440 Um A lot of the asset they have right now 0:11:21.480 --> 0:11:25.400 are cryptocurrency assets, which are just losing value, and my 0:11:25.480 --> 0:11:27.520 guess is the money they're able to find is going 0:11:27.559 --> 0:11:29.480 to be only a fraction of what's going to be 0:11:29.520 --> 0:11:34.280 owed to the debtors, to the creditors, and you, as 0:11:34.280 --> 0:11:37.280 a depositor, will most likely not get anything. Now, I 0:11:37.559 --> 0:11:39.920 don't want to crush your dreams and your hopes, but 0:11:40.080 --> 0:11:44.240 I think that's going to be the case. And what 0:11:44.280 --> 0:11:45.720 we can really hope is that there's going to be 0:11:45.760 --> 0:11:49.480 some justice here, that Sam Bankmin Freed and his cohorts 0:11:49.520 --> 0:11:54.800 will be held up for justice of stealing these people's money. 0:11:54.400 --> 0:11:58.200 I am appalled why he's not already in handcuffs right now. 0:11:59.559 --> 0:12:02.440 When burn he made off was finally found out that 0:12:02.520 --> 0:12:04.880 he was running one of the biggest ponzis that we've 0:12:04.880 --> 0:12:09.520 seen in US history, he was handcuffed immediately. We just 0:12:09.559 --> 0:12:13.760 saw Elizabeth Holmes from Thorano's. She just got sentenced to 0:12:13.840 --> 0:12:19.800 eleven point to five years in prison for defrauding sophisticated investors. 0:12:20.160 --> 0:12:24.640 Here's Sam Bankman Freed SPF stole from you, from retail, 0:12:25.720 --> 0:12:29.960 not from sophisticated to credit investors, from retail people. And 0:12:30.000 --> 0:12:31.400 what did he do with it? It says right here 0:12:31.400 --> 0:12:36.400 Bankman Freed's f TX senior staff and parents bought Bahamas 0:12:36.480 --> 0:12:40.720 property is worth three hundred million dollars. Now, Sam Bankman 0:12:40.760 --> 0:12:43.120 Freed supposedly, I don't need any money, I don't want 0:12:43.120 --> 0:12:45.120 to be rich. I just drive it toward a Corolla. 0:12:45.280 --> 0:12:51.120 I'm giving all my money to charity. Meanwhile, he was 0:12:51.200 --> 0:12:55.000 living a lie. He was living in a I think 0:12:55.040 --> 0:12:59.240 a thirty million dollar mansion, and he gave his parents 0:12:59.440 --> 0:13:05.240 and three hundred million worth of property. Now his parents, 0:13:05.679 --> 0:13:08.199 so Sam Bankman Freed, it's a hyphen aid last name. 0:13:08.200 --> 0:13:09.640 One of his parents' is bankman, and one of his 0:13:10.040 --> 0:13:11.880 parents is freed. I think I believe it's the father's 0:13:11.920 --> 0:13:16.720 bank when his mother's freed. They're both attorneys, they're both 0:13:17.200 --> 0:13:22.679 tax attorneys, and they're both heavily and they're both professors, 0:13:23.440 --> 0:13:26.800 and they're both heavily involved into the Democratic Party. They're bundlers, 0:13:26.800 --> 0:13:29.760 so they raise money for the Democratic Party. And his 0:13:29.880 --> 0:13:36.360 father writes policy for Elizabeth Warren. So when you're a 0:13:36.440 --> 0:13:43.800 tax law professor teaching and writing writing regulations for Elizabeth Warren, 0:13:44.160 --> 0:13:47.000 you know better, all right, you know better. You're not 0:13:47.040 --> 0:13:51.000 just some unsophisticated person. You don't just take three hundred 0:13:51.040 --> 0:13:53.760 million dollars worth of property out of this, out of this. 0:13:54.920 --> 0:13:58.040 I'll call it what it is a conspiracy. It says 0:13:58.080 --> 0:14:00.719 here attorneys for ft exit on Tuesday that one of 0:14:00.760 --> 0:14:04.120 the company's units spent three hundred million in the Bahamas 0:14:04.120 --> 0:14:08.240 buying homes and vacation properties for its senior staff, and 0:14:08.280 --> 0:14:12.000 the FTX was run as a personal fifetom. We already 0:14:12.000 --> 0:14:16.240 talked about that. So uh, luxury beach front homes including 0:14:16.240 --> 0:14:19.520 seven condom miniums and an expensive resort called Albany, costing 0:14:19.560 --> 0:14:24.800 almost seventy two million for that one million, so you know, 0:14:24.800 --> 0:14:26.520 Sam Bankman for you. Oh, I just want to get 0:14:26.600 --> 0:14:28.400 rich so I can save the world. And I just 0:14:28.480 --> 0:14:31.240 drive a Corolla and I don't care about money. Meanwhile, 0:14:31.280 --> 0:14:35.080 living in a seventy two million dollar resort called Albany. 0:14:35.720 --> 0:14:41.920 Mm hmm. So um. Not only is he a a liar, 0:14:42.680 --> 0:14:47.600 he's a scammer, he's a fraud ster. And yet he's 0:14:47.640 --> 0:14:52.440 still not in handcuffs, still not in handcuffs. As a 0:14:52.440 --> 0:14:54.840 matter of fact, it's not that he's just not even 0:14:54.880 --> 0:14:58.160 still not in handcuffs, which is incredible on its own. 0:14:58.760 --> 0:15:02.160 On top of that, the New York Times still has 0:15:02.240 --> 0:15:07.480 him scheduled to speak and of commuting on November. Um, 0:15:07.520 --> 0:15:11.480 he's booked to speak with the same stage and meeting 0:15:11.560 --> 0:15:17.720 as Janet Yelling, the Treasury Secretary and President Zelinsky from Ukraine. 0:15:19.120 --> 0:15:21.200 And and this isn't just like they haven't got around 0:15:21.240 --> 0:15:23.440 to update in the website. I've been following this and 0:15:23.520 --> 0:15:27.680 they just updated the website and they took down one 0:15:27.840 --> 0:15:30.760 somebody and they put up Ben Affleck, the actor. So 0:15:30.840 --> 0:15:33.440 they just updated to put him on there. They couldn't 0:15:33.440 --> 0:15:36.880 have updated to take Sam Bankman freedoff. He's still scheduled 0:15:36.920 --> 0:15:41.840 to speak. He's not in handcuffs. I mean, this is 0:15:41.880 --> 0:15:45.560 just insanity. This is just insanity. On the flip side, 0:15:46.800 --> 0:15:50.440 we have I've talked about this before. There's a developer 0:15:50.520 --> 0:15:53.480 that wrote a piece of software for like a cryptocurrency project. 0:15:54.000 --> 0:15:58.200 He wrote a piece of software. He didn't use it. 0:15:58.360 --> 0:16:00.360 He created it that other people could use. Is called 0:16:00.360 --> 0:16:07.080 Tornado Cash. Alex per Per TASIV is to remain in 0:16:07.200 --> 0:16:11.400 jail until at least late February. So this guy, a 0:16:11.480 --> 0:16:15.320 Russian national living in the Netherlands, was accused of facilitating 0:16:15.560 --> 0:16:19.240 money laundering by developing an app. So he created an 0:16:19.280 --> 0:16:23.920 app that other people used. Supposedly they use this um illegally. Allegedly, 0:16:24.880 --> 0:16:27.400 he didn't. He just created a piece of software that 0:16:27.520 --> 0:16:32.840 people used potentially illegally, we don't know. He was arrested immediately. 0:16:33.360 --> 0:16:37.440 He's being held indefinitely and he's not even scheduled to 0:16:37.480 --> 0:16:41.280 have even a hearing until February for creating a piece 0:16:41.320 --> 0:16:47.680 of software that potentially, allegedly people might use for things 0:16:47.720 --> 0:16:52.080 that might be potentially illegal. Maybe if they find out, 0:16:52.200 --> 0:16:55.600 it doesn't matter. He got picked up, he's whole. He's 0:16:55.640 --> 0:16:59.240 being held indefinitely and maybe he'll get his hearing in 0:16:59.480 --> 0:17:04.000 UM in February and maybe they'll find something. Think about 0:17:04.000 --> 0:17:05.960 that for a minute, But SBF is prayed in around 0:17:05.960 --> 0:17:08.480 town and still said to go whole talks and appearances. 0:17:10.359 --> 0:17:13.000 The one thing that you can tell about the position 0:17:13.080 --> 0:17:18.199 of the state where your government is how they prosecute crimes. 0:17:18.640 --> 0:17:22.280 How do they prosecute crimes against their own citizens? So 0:17:22.320 --> 0:17:25.040 how are they prosecuting crimes that SPF has committed against 0:17:25.080 --> 0:17:27.719 the citizens of the United States versus how do they 0:17:27.760 --> 0:17:33.400 prosecute crimes against their own power. So here's the Netherlands 0:17:33.440 --> 0:17:36.760 resident from Russia that create a piece of software, And 0:17:36.800 --> 0:17:39.520 look what the U S is doing, And look what 0:17:39.560 --> 0:17:43.000 they're doing to somebody like Sam BigMan Freed, who literally 0:17:43.040 --> 0:17:46.600 defrauded billions of dollars from U S. Citizens. And they're 0:17:46.600 --> 0:17:49.960 doing nothing. They're still propping them up, They're still allowing 0:17:49.960 --> 0:17:51.840 to speak on the same stage with the US Treasury 0:17:51.880 --> 0:17:57.840 Secretary of Treasury Jenny Ellen. It's a sad day. It's 0:17:57.840 --> 0:17:59.560 a sad day when you can see the position of 0:17:59.560 --> 0:18:02.560 the state by how they prosecute crimes against their citizens 0:18:03.119 --> 0:18:09.199 versus crimes against themselves. Tax evasion, that's fifteen years, oh, 0:18:09.320 --> 0:18:12.040 ten billion dollars from citizens. No worries. We'll still invite 0:18:12.040 --> 0:18:13.840 you to speak at the White House. Anyway. If you're 0:18:13.880 --> 0:18:15.520 just tuning in, you're listening to the Markma Show, we're 0:18:15.520 --> 0:18:17.800 talking about some of the latest breaking news that's going 0:18:17.840 --> 0:18:19.520 on in the cryptocurrency space this week. I got more 0:18:19.560 --> 0:18:21.040 to cover when I come back. Don't go away, I'll 0:18:21.040 --> 0:18:23.399 be right back, all right, Welcome back. If you're just 0:18:23.400 --> 0:18:25.360 tuning in, you're listening to the Mark Mos Show. We're 0:18:25.680 --> 0:18:29.680 running through the biggest headlines happening in the cryptocurrency space. 0:18:29.720 --> 0:18:31.720 In the we look at the world through the lens 0:18:31.720 --> 0:18:36.920 of politics, finance, and technology as we're witnessing the technological 0:18:37.440 --> 0:18:41.280 revolution happening, the decentralized revolution happening. We're talking about f 0:18:41.400 --> 0:18:43.760 t X is blowing up, and then we're talking about 0:18:43.800 --> 0:18:46.600 how the regulations against f t X versus like someone 0:18:46.640 --> 0:18:48.600 who created a piece of software like Tornado Cash, are 0:18:48.640 --> 0:18:54.720 so glaringly different. Another one that I want to talk 0:18:54.760 --> 0:18:57.240 about is I've been talking about a while, which one 0:18:57.240 --> 0:18:58.960 of the big pieces that really led to this whole 0:18:58.960 --> 0:19:01.760 domino effect, this cascade and effect in the cryptocurrency space 0:19:01.800 --> 0:19:05.560 with Celsius. Celsius was what's called a c FI. It's 0:19:05.640 --> 0:19:09.000 centralized finance. So there's DeFi, which is supposed to stand 0:19:09.040 --> 0:19:12.639 for decentralized finance, and then there's c FI, which is 0:19:12.680 --> 0:19:17.439 more like centralized finance, so supposedly defied decentralized finances like 0:19:17.480 --> 0:19:20.640 an open source software protocol where you could stake your 0:19:20.640 --> 0:19:23.320 tokens and you could earn rewards back. Where a c 0:19:23.520 --> 0:19:25.960 FI is like a as a company, a centralized company 0:19:26.000 --> 0:19:28.080 that's supposed to do that for you. And so I 0:19:28.200 --> 0:19:31.119 give my tokens to this company, they invest them on 0:19:31.200 --> 0:19:34.200 my behalf, and they give me a return back. Celsius 0:19:34.359 --> 0:19:36.359 was a big one. Of course, Block five is a 0:19:36.400 --> 0:19:40.040 big one. And I've you know, I've been outspoken against 0:19:40.119 --> 0:19:43.280 these these uh for quite a while. UM I did 0:19:43.440 --> 0:19:46.399 do some UH some ads for Block five back in 0:19:46.440 --> 0:19:48.439 the day. It's been over two years since I decided 0:19:48.480 --> 0:19:50.439 to walk away from all of that. I'm just not 0:19:50.480 --> 0:19:51.840 a fan of it. I'm not a fan of the 0:19:52.000 --> 0:19:55.040 risk and reward ratios of that, and so as an investor, 0:19:55.080 --> 0:19:57.919 I'm always looking for what I call asymmetric returns. I 0:19:57.920 --> 0:20:01.160 want something that gives me more upside than downside, right, 0:20:01.480 --> 0:20:05.480 and so um, I think right now bitcoin is probably 0:20:05.480 --> 0:20:07.760 still one of the best asymmetric opportunities that we have 0:20:07.800 --> 0:20:10.480 in the world today. UM, I think there's an easy 0:20:10.720 --> 0:20:14.000 hundred x upside in front of us, or it could 0:20:14.040 --> 0:20:15.520 go to zero. I could lose it all, so that 0:20:15.520 --> 0:20:18.600 would be a one x downside. I could lose everything, 0:20:18.960 --> 0:20:21.520 or I have a one hundred x upside. I like 0:20:21.600 --> 0:20:25.560 those odds. But when I'm giving my cryptocurrency or my 0:20:25.600 --> 0:20:29.720 bitcoin to a platform like block fire Celsius, I'm potentially 0:20:29.840 --> 0:20:34.000 risking it all. So I have a hundred percent risk 0:20:34.080 --> 0:20:39.640 of loss with only a four or six percent upside return. 0:20:40.520 --> 0:20:43.560 So a hundred percent on the downside with a six 0:20:43.640 --> 0:20:47.320 percent on the upside, that doesn't sound good to me. 0:20:48.119 --> 0:20:50.320 That's not the type of returns I'm looking for. I 0:20:50.359 --> 0:20:54.240 want to risk six percent and have a hundred percent upside. 0:20:54.400 --> 0:20:55.840 But they do it the other way. So I'm not 0:20:55.880 --> 0:20:59.560 a fan of that. And unfortunately for people who use 0:20:59.560 --> 0:21:02.000 selsie us and who use Block five, they had to 0:21:02.040 --> 0:21:04.720 find that out the hard way. They did lose. I mean, 0:21:05.400 --> 0:21:07.840 if you had funds on that, it's gone at this 0:21:07.880 --> 0:21:12.240 point now. Uh, for Block five, it's not looking good 0:21:12.760 --> 0:21:17.159 because Block five had all their money on on ft X, 0:21:17.640 --> 0:21:19.439 And as I talked about before the commercial break, if 0:21:19.440 --> 0:21:20.560 you had money on the f t X, it's not 0:21:20.600 --> 0:21:23.320 looking good for you there. And so what happened with 0:21:23.359 --> 0:21:26.400 Block five, and this is even a bigger scam. Block 0:21:26.480 --> 0:21:28.879 five might have been okay on their own. Potentially they 0:21:28.920 --> 0:21:31.280 had other offers to help build them out, which would 0:21:31.280 --> 0:21:34.600 have helped save customer deposits. But when f t X, 0:21:34.640 --> 0:21:36.760 when Sam Bankman Freed came in like the savior to 0:21:36.760 --> 0:21:39.480 save the whole industry. He said, hey, block Fire, don't worry, 0:21:39.480 --> 0:21:40.919 I got your back. I'll help you out. Here's what 0:21:40.920 --> 0:21:43.800 we're gonna do, though, here's gonna do. What we're gonna 0:21:43.800 --> 0:21:46.920 do is uh we f t X, me, Sam Bankman 0:21:46.960 --> 0:21:49.679 Freed and ft X. We will guarantee your customer deposits. 0:21:51.040 --> 0:21:52.959 We're not gonna give you any money for the equity. 0:21:53.000 --> 0:21:54.600 For all the people that invested money in the company, 0:21:54.640 --> 0:21:56.600 they're all screwed. But we're gonna take care of your customers. 0:21:56.600 --> 0:21:58.600 Don't worry. But what we have to do in exchange 0:21:58.920 --> 0:22:01.960 in order for us to to guarantee all that is 0:22:02.080 --> 0:22:05.080 you need to now give us all your deposits. So 0:22:05.119 --> 0:22:07.639 all those customer funds that that that block Fire was holding, 0:22:08.400 --> 0:22:09.879 now you gotta give it to us. We'll hold it 0:22:09.920 --> 0:22:12.679 for you though, and we're going to guarantee all those deposits. Now. 0:22:12.720 --> 0:22:16.720 The shady shady shadiness of this is that SpFN alameter 0:22:16.960 --> 0:22:21.479 already bankrupt at this point. They already knew this. You 0:22:21.520 --> 0:22:25.160 didn't know this, but they already knew this. So they 0:22:25.280 --> 0:22:28.560 fraudulently went out and pretended to be something that they weren't. 0:22:28.600 --> 0:22:31.639 They made promises and guarantees that they couldn't live up to, 0:22:33.119 --> 0:22:35.680 and they promised to take care of these uh customer 0:22:35.760 --> 0:22:39.760 deposits in exchange for giving him to us unless holding him, 0:22:39.800 --> 0:22:41.880 and they just stole those two. So those are gone. 0:22:41.920 --> 0:22:43.640 And so unfortunately, if you had money on Block five, 0:22:44.200 --> 0:22:47.320 then it was auction on FTXC, and unfortunately it's probably gone. 0:22:48.200 --> 0:22:51.639 If you were with Celsius, there might still be a 0:22:51.840 --> 0:22:53.960 ray of hope, a little sliver of hope. And I 0:22:53.960 --> 0:22:55.880 don't want to give you false hope, but I've been 0:22:55.960 --> 0:22:58.440 documented this. I'm covering it because if you have money there, 0:22:58.480 --> 0:23:00.760 you have exposure there. I want you to know. But 0:23:01.880 --> 0:23:04.040 there was a couple of different ways people had money 0:23:04.080 --> 0:23:07.200 on Celsius. So one people had it just as storage, 0:23:07.280 --> 0:23:10.200 so they're just holding my keys for me. Those people 0:23:10.960 --> 0:23:13.800 have a decent chance of getting a good majority of 0:23:13.840 --> 0:23:18.320 their money back. Then there was loan products, so I 0:23:18.359 --> 0:23:20.560 was getting a loan from Celsius and they held a 0:23:20.600 --> 0:23:23.520 bit of my cryptocurrency as collateral. And then there was 0:23:23.720 --> 0:23:26.120 yield where I gave you my cryptocurrency and you gave 0:23:26.160 --> 0:23:29.400 me a percentage back on that um. And so there's 0:23:29.680 --> 0:23:32.719