Speaker 1: Hello, and welcome to another episode of The Mark Moss Show,
Speaker 1: where we talk about the decentralized revolution. We are talking
Speaker 1: about how the world is changing, of course, right before
Speaker 1: our very eyes, and of course we look at it
Speaker 1: through the lens of politics, finance, and technology, politics, finance,
Speaker 1: and technology. And today, man, we are going to talk
Speaker 1: about the biggest news in all three of those areas, politics, finance,
Speaker 1: and technology. Of course, those three things are interconnected, and
Speaker 1: that's where I like to focus, and so I got
Speaker 1: a big, big, big, big, big show to talk about. Today.
Speaker 1: We are going to talk about the second largest cryptocurrency
Speaker 1: exchange blowing up and taking down everything in its wake.
Speaker 1: Let's just say everything. It's taking down the cryptocurrency industry,
Speaker 1: it's taking down the political industry, it's disrupting the finance industry.
Speaker 1: I mean, this is really, really, really big news, and
Speaker 1: I want to look at it from a couple of ways.
Speaker 1: I've already done two videos on my YouTube channel, digging
Speaker 1: deep into this, where I've shown on on the you
Speaker 1: know here on the here what I'm just talking to you.
Speaker 1: I just have to kind of talk to you verbally
Speaker 1: and you kind of have to take my word for it.
Speaker 1: On YouTube. I'd like to bring what I call the receipts,
Speaker 1: and this is I want the graphs, the headlines, the facts,
Speaker 1: the figures to show you, because man, some of this
Speaker 1: stuff is unbelievable. But I want to talk to you
Speaker 1: today and I want to dig in a little bit
Speaker 1: more in some way and discuss some things that I
Speaker 1: haven't put out anywhere else. And so I want to
Speaker 1: run through, first of all, I want to explain to
Speaker 1: you how this all works. And it's super important that
Speaker 1: you understand this part because I've said some things on
Speaker 1: Twitter that have made a lot of people angry. And
Speaker 1: I said that this might have been the last cryptocurrency
Speaker 1: bull run that we'll see again. And I said that
Speaker 1: because of regulations that will come. And people are like, oh, Mark,
Speaker 1: you don't know, like they'll just go off shore and
Speaker 1: regulators can't stop it. And I would agree with both
Speaker 1: of those things. However, if you don't understand how the
Speaker 1: market works, then you won't understand why regulations will put
Speaker 1: a let's say, put the brakes on this thing. Now.
Speaker 1: I'm not saying it's gonna go away. I'm not saying
Speaker 1: it's gonna kill You can't stop innovation. I'm all for that,
Speaker 1: but if you don't understand how this works, then you
Speaker 1: won't understand the impact that it has. So anyway, I'm
Speaker 1: gonna explain how this all works, how this got built up?
Speaker 1: All right, Then we're gonna talk about, um, you know
Speaker 1: what they did, what ft X, what Sam Bankman fried,
Speaker 1: what Alameda did, um in in in ties with the regulators,
Speaker 1: the SEC, the CFTC, with the Democratic Party. Uh, we're
Speaker 1: gonna talk about the ties they have with the globalist um.
Speaker 1: Then I want to go into um this massive backlash
Speaker 1: that's happening, what potentially these regulators may or may not
Speaker 1: do after it? Um, And then what's gonna happen next,
Speaker 1: What other companies are at risk at danger, what happens
Speaker 1: with the overall industry after this? And so much more?
Speaker 1: Um Man the big It's a big, ambitious goal to
Speaker 1: get through all this in the show. So I'm gonna
Speaker 1: have to talk really fast that you're gonna have stick
Speaker 1: with me, and you are not going to want to
Speaker 1: miss any of this. So let's just dig in. So UM,
Speaker 1: I want to explain to you first how this works, because,
Speaker 1: like I said, all these people on Twitter, they're all
Speaker 1: mad at me today because I said that we may
Speaker 1: see the last crypto bul run. So first off, let
Speaker 1: me just say right off the bat, I and if you,
Speaker 1: if you, if you tune into my shows regularly, you
Speaker 1: should already know this, but I'm gonna tell you anyway.
Speaker 1: As a disclaimer, I am a freedom maximalist. I don't
Speaker 1: know what political party I'm in. I'm a freedom maximist.
Speaker 1: I'm for the party that gives me more freedom and
Speaker 1: less government. I believe, as an American everything is free.
Speaker 1: I believe that we are in the land of the free.
Speaker 1: I believe in the country that my grandfather went to
Speaker 1: war defending, my father went to war defending. I believe
Speaker 1: every we are free people and everything is free. The
Speaker 1: government does not give us freedoms, nor do they tell
Speaker 1: us what we're allowed to do. The government does make
Speaker 1: laws which takes away our freedoms, but unless there's already
Speaker 1: a law there, then we are free. I am not
Speaker 1: for regulations, um. I believe that we should have uh
Speaker 1: as little as regulations as possible. So don't take this
Speaker 1: episode as I am asking for or I want regulations
Speaker 1: to happen. But as an investor, I believe that we
Speaker 1: invest in the world as it is, not as we
Speaker 1: want it to be, not as we think it should be,
Speaker 1: but as it is. So I'm not for regulations, I'm
Speaker 1: not for big government. I don't want this to happen,
Speaker 1: but this is what I see happening. Okay, So let
Speaker 1: me just let me just let me just preface that. Okay,
Speaker 1: Now that being said, let's dig into this story. By
Speaker 1: the by this point, you had to have seen it
Speaker 1: all over the internet. It's the largest story because it's
Speaker 1: the largest cryptocurrency exchange. We're talking about over ten billion
Speaker 1: or really the company was I had at thirty two billion,
Speaker 1: thirty two billion dollars and it basically got viscerated overnight.
Speaker 1: And when I say overnight, over a couple of days,
Speaker 1: um about eight days probably from the time the story
Speaker 1: broke to the time it kind of got wrapped up,
Speaker 1: although of course the story is not wrapped up, and
Speaker 1: it's not a funny story. It's not a story to
Speaker 1: be taken lightly. Ten billion dollars were fraudulently taken away.
Speaker 1: And that's not just some numbers on the screen. That
Speaker 1: represents probably hundreds of thousands of people, hundreds of thousands
Speaker 1: of families who might have had their entire life savings
Speaker 1: wiped out. So this is not funny. I don't take
Speaker 1: this lightly. I take this very seriously. So I might
Speaker 1: be laughing about some of this because it's just so idiotic,
Speaker 1: but I but I don't take this lightly. Uh. And
Speaker 1: I feel bad for anybody caught up in this. However,
Speaker 1: you know the saying I don't lose, either win or
Speaker 1: I learned. So if you've lost, take it as a lesson.
Speaker 1: Learn from this. And if you didn't lose, consider yourself lucky,
Speaker 1: but still learn from this, and hopefully you can learn
Speaker 1: from other people's mistakes. All right, Um, And I'll also
Speaker 1: say just now that I hope, um, Sam Bankman, Freed
Speaker 1: and everybody else involved in this pays for this. Alright.
Speaker 1: I we need real accountability. I'm afraid we may not
Speaker 1: get it. And of course that's the state of the
Speaker 1: United States at this point. But let's talk about this.
Speaker 1: So how did this work? And like I said, this
Speaker 1: is the key piece to understand. First of all, So
Speaker 1: there's two companies now now I'm gonna explain f t
Speaker 1: X and Alameda, but this is the whole industry. Okay,
Speaker 1: So there's two companies f t X, which is an
Speaker 1: exchange and exchange is like a broker So if you
Speaker 1: want to buy stocks of Facebook or Tesla or Google
Speaker 1: or Amazon or whatever, it's not Facebook and More. It's
Speaker 1: met Up. But if you want to buy any of
Speaker 1: those stocks, you would need a brokerage account and that
Speaker 1: would be you know, E Trade or Charles Schwab or
Speaker 1: Interactive Brokers or something like that. Okay, so that's where
Speaker 1: you can go and buy and sells off. You can
Speaker 1: exchange things, all right. Then that so ft X was
Speaker 1: an exchange. Then there was another company, a sister company
Speaker 1: called Alameda, and Alameda is what's known as a market maker.
Speaker 1: That means they make markets. That means that they artificially
Speaker 1: create demand and artificially create a price around that. All right. Now,
Speaker 1: some of you go might go, oh, Mark, that's conspiratorial.
Speaker 1: Market makers just provide liquidity. Yeah, they do. They do
Speaker 1: provide liquidity, but they also create artificial prices in this case,
Speaker 1: and so I'm gonna explain how that works, all right now.
Speaker 1: I do want to point out that in the point
Speaker 1: of stocks, Amazon, Facebook, Tesla, etcetera. Stocks are what we
Speaker 1: consider securities equities, right, So when I buy a stock
Speaker 1: in a company, I'm actually buying equity. I'm actually an
Speaker 1: owner of that company, and that security is is the stock,
Speaker 1: all right. And what that also means is that those companies,
Speaker 1: in order to release that stock into the public that
Speaker 1: I could buy stock certificates are um they're not certificates
Speaker 1: anymore now it's just all digital but their stocks. But
Speaker 1: in order for our company to do that, they have
Speaker 1: to file all types of paperwork, they have to meet
Speaker 1: all types of requirements, they have to spend lots of
Speaker 1: money in lawyers and fees and and things like that,
Speaker 1: Lots of due diligence they have to go through, and
Speaker 1: they have to, you know, basically prove their legitimate and
Speaker 1: they're not full of they're not fraught. Then the exchanges
Speaker 1: where you exchange those the etras, the child schwabs, et cetera.
Speaker 1: Tdum are trades. Those aren't just exchanges. Those are brokerages
Speaker 1: that are licensed to allow you to buy and sell
Speaker 1: these securities. Now, all of that is meant to protect you.
Speaker 1: I'm not for the government imposing that. I think we
Speaker 1: should be able to protect ourselves. But this is the system. Okay,
Speaker 1: the crypto space, what FTX and others are doing is
Speaker 1: completely opposite. F t X runs in exchange that does
Speaker 1: not sell securities. But that's the piece we're going to
Speaker 1: come back to. And because they're not selling licensed securities,
Speaker 1: then they're not licensed either, which is ripe for massive
Speaker 1: amounts of fraud. Now I'm not saying we need government
Speaker 1: regulations for that, but I want to frame that up.
Speaker 1: But more importantly, I want to talk about how all
Speaker 1: this crypto space makes so much money and leads to fraud.
Speaker 1: So we're gonna talk about that. Like I said, I've
Speaker 1: got a lot of big ambitius show to go through.
Speaker 1: You do not want to miss it. If you're just
Speaker 1: tuning in right now, you're listening to the Mark Moa show.
Speaker 1: We're talking about this ft X blow up and what
Speaker 1: that means. I got a lot to cover. You don't
Speaker 1: want to miss it, so don't go away, all right,
Speaker 1: Welcome back. If you just tune it in. You are
Speaker 1: listening to the Mark mass show. We're talking about the
Speaker 1: ft X blow up. This is something I've been I've
Speaker 1: been covering extensively. Um I've done too really really deep
Speaker 1: dive like forty five minute videos on my main YouTube
Speaker 1: channel Mark Moss, very very deep investigative journalism, so to speak,
Speaker 1: even though I wouldn't consider myself that. If you want
Speaker 1: to watch those super deep dives, you can go check
Speaker 1: it out. Just search Mark Moss on YouTube. Also, if
Speaker 1: you miss any part of the show, don't where I
Speaker 1: got your back. You can catch it on your favorite
Speaker 1: podcast player. Just search Mark Moss Show or check me
Speaker 1: out on YouTube. Um on the Market Disruptor channel, you
Speaker 1: can watch and listen there. Um And I've been putting
Speaker 1: out the playboo, but this story is going so fast.
Speaker 1: I've been putting this on the play by play on Twitter.
Speaker 1: So if you're not following me on Twitter, check that
Speaker 1: out at one, just the number one, Mark Moss at
Speaker 1: one Mark Moss. So anyway, getting back to this, so
Speaker 1: there's two companies, Alameda and ft X, and so here's
Speaker 1: how it works. As a matter of fact, I'm gonna
Speaker 1: tell you, I'm gonna redo directly from Sam Bankman Freed SPF.
Speaker 1: He's the founder of f t X and Alameda, and
Speaker 1: he actually explained exactly how it works in an interview
Speaker 1: on April two thousand two. Now, if you've been listening
Speaker 1: to the podcast for a long time since April. I
Speaker 1: originally read this to you back then, but I'm gonna
Speaker 1: read it to you again here. So this is directly
Speaker 1: from his own mouth. Okay, he says, uh, okay. The
Speaker 1: cryptocurrency world is split into two. This is not from
Speaker 1: him yet, but the cryptocurrency world is split into two
Speaker 1: different visions. One group of fundamentalists seeing some coins like
Speaker 1: Bitcoin as unchanging, static line of code that can active
Speaker 1: stores with vious. So that's bitcoin, Bitcoin's over here. And
Speaker 1: then there's another group experimenting at an increasingly frantic pace
Speaker 1: with new ways to create money. Right, Bitcoin and crypto,
Speaker 1: they're not the same. Bitcoin is a static line of
Speaker 1: code that's the store value. The other one is frantically
Speaker 1: trying to create money out of thin air. Okay, So
Speaker 1: now let's talk about this interview, and I'm gonna read
Speaker 1: directly quote and stand bankman freed. So here's how it works.
Speaker 1: You start with a company that builds a box and
Speaker 1: then practice this box. They probably dress it up to
Speaker 1: look like it's a life changing, you know, world altering protocol.
Speaker 1: So what he's saying is you start with a box.
Speaker 1: So a company that's a key piece a company. Remember
Speaker 1: that a company builds a box and they dress it
Speaker 1: up to look like it's a life changing, world altering
Speaker 1: protocol to all these cryptocurrencies, their protocols, right, their software,
Speaker 1: They're gonna change the world, which is exactly what he's saying.
Speaker 1: So they a company builds a box and they dress
Speaker 1: it up to look like it's a life changing, world
Speaker 1: altering protocol. Then it says what it does, or it
Speaker 1: pretend it does literally nothing. It's just a box. I'm
Speaker 1: reading directly from him. So they create a company. Uh,
Speaker 1: they create a box. They say it's a world changing protocol.
Speaker 1: But the box does nothing. It's just a box. So
Speaker 1: what this protocol is, It's called protocol X. It's a box.
Speaker 1: Now you take a token, all right, and you can
Speaker 1: take ethereum. You can put it in the box and
Speaker 1: then you take it back out of the box. So
Speaker 1: you put money in and you take money out. You
Speaker 1: start doing this to create activity. That's me ad living
Speaker 1: here um. Now I'm gonna go back to quoteing him
Speaker 1: quote It doesn't do anything but let you put things
Speaker 1: in it if you so choose. Then this protocol issues
Speaker 1: a token. We call it whatever, call it X token,
Speaker 1: and X token promises that anything cool that happens because
Speaker 1: of this box is going to ultimately be usable. So
Speaker 1: now on the ad lib again here. So you created,
Speaker 1: you create a box. A company creates a box and
Speaker 1: they say it's going to change the world. Then they
Speaker 1: start putting tokens in and out of the box, like
Speaker 1: a theory. In and out the box. There's like some activity.
Speaker 1: And then they create a token for this box, and
Speaker 1: this token promises that anything that happens that's cool with
Speaker 1: the box is gonna be usable. Now we don't know
Speaker 1: what that is. It's gonna have utility, though, we promise.
Speaker 1: We don't know what utility is, but don't worry, it's
Speaker 1: gonna have utility. Okay, this is how it works. Quote.
Speaker 1: And of course so far we haven't exactly given a
Speaker 1: compelling reason for why there would ever be any proceeds
Speaker 1: from this box, but I don't know, you know, maybe
Speaker 1: there will be end quote. Okay quote. And then you say,
Speaker 1: all right, well you've got this box and you've got
Speaker 1: ex token. They're going to give them away for free
Speaker 1: to whoever uses the box. End quote. So basically, you've
Speaker 1: created this token. You create a company, you create a box,
Speaker 1: create a token, you pretend that there's some stuff going
Speaker 1: in and out of the box. You're putting money in
Speaker 1: and out of the box to pretend there's something there.
Speaker 1: And then you create this token and you say, hey,
Speaker 1: anybody else that puts money in this box will give
Speaker 1: you this token that we created out of thin air,
Speaker 1: and we're gonna give it to you. All right, Um,
Speaker 1: if you use the box, quote X token has some
Speaker 1: market cap, right, it's probably not zero. Let's say you
Speaker 1: know it's twenty million market At this point, the interviewer
Speaker 1: Matt says, wait, wait, wait, wait, wait, from like first principles,
Speaker 1: it should be zero. Sam Bankman Freed says, uh, sure, okay,
Speaker 1: completely reasonable comments. The interviewer Matt says, when you describe it,
Speaker 1: it sounds like it should be zero. Sam Bankman Freed says, quote,
Speaker 1: you might think that in like five minutes, with the
Speaker 1: Internet connection, you could create such a box and such
Speaker 1: a token. So Sam Bankman Freed says, yeah, you might
Speaker 1: think it should be zero, and actually it probably should
Speaker 1: be because I could create this in five minutes. If
Speaker 1: I had an Internet connection, within five minutes, I could
Speaker 1: quote create such a box and such a token. It
Speaker 1: should be worth like one hundred and eighty dollars. You
Speaker 1: know that effort that you put into it. In the
Speaker 1: world that we're in, if you do this, everyone's going
Speaker 1: to be like, oh, box token, maybe it's cool. If
Speaker 1: you buy in box token, you know that's gonna appear
Speaker 1: on Twitter and it will have a twenty million market cap.
Speaker 1: One thing that you could do is you could like
Speaker 1: make the float very low. There haven't been twenty million
Speaker 1: dollars that have flowed into it yet end quote. So
Speaker 1: he's saying, yeah, it should be worth nothing because all
Speaker 1: you need is an Internet connection and I could make
Speaker 1: this in five minutes, That's what he said. But because
Speaker 1: you tell the world, oh, if you buy this box token,
Speaker 1: it's gonna be worth so much money. And then he says, uh,
Speaker 1: there would be a very low float. So what does
Speaker 1: that mean. So a low float meaning you create, let's
Speaker 1: say a hundred million tokens and of the hundred million,
Speaker 1: only a very small percentage you're actually available to trade.
Speaker 1: So out of a hundred million tokens, you take I
Speaker 1: don't know, five thousand of them, like almost nothing. The
Speaker 1: rest get locked up. Of the five thousand, you start
Speaker 1: trading and through wash trading that means I trade in
Speaker 1: and out by myself. So I sell it to my buddy,
Speaker 1: and they sell it to their buddy and Eyboddy and
Speaker 1: I buy it back and then it goes round and
Speaker 1: round and round. And because it's such a very thin amount,
Speaker 1: it's very easy for me to push the market cap
Speaker 1: or the valuation of a token that's very thinly traded up. Now,
Speaker 1: the interviewer says, quote, it shouldn't have any market cap
Speaker 1: in theory, and Sam Bankman Freed says, quote, that's right.
Speaker 1: So it shouldn't have any value because they just made
Speaker 1: it up and it didn't cost any money, and all
Speaker 1: that was a computer and internet and they did it
Speaker 1: and we've artificially created and it it shouldn't have any value.
Speaker 1: And Sam Bankman Freeze says, quote that's right, continuing quote.
Speaker 1: Obviously already we're sort of hiding some of the magic impact, right,
Speaker 1: some of the magic is in like how do you
Speaker 1: get that market cap to start with? But you know whatever,
Speaker 1: we're gonna move on from that. Ex tokens are being
Speaker 1: of it out each day. All these like sophisticated firms
Speaker 1: are like, huh, that's interesting, Like if the total amount
Speaker 1: of money in the box is a hundred million dollars.
Speaker 1: Then it's going to yield sixteen million this year and
Speaker 1: ex tokens being given out for UH sixty percent return.
Speaker 1: So what he's saying there end quote. So what Sam
Speaker 1: Bankman Free is saying is you're right, it shouldn't have
Speaker 1: any market cap, but we're hiding some of the magic.
Speaker 1: And he says, um X tokens are being get out
Speaker 1: every day and these sophisticated firms are like, that's interesting.
Speaker 1: These sophisticated firms are the venture capitalist firms. And this
Speaker 1: is a key piece. So venture capitalists loves cryptocurrency because
Speaker 1: they can buy these fake imaginary tokens and instantly make
Speaker 1: In this example, Sam Bankman Freed quoted him says they
Speaker 1: could make sixteen million this year. So typically venture capital
Speaker 1: has to lock up money for seven to ten years
Speaker 1: and hopefully if this company really changes the world, will
Speaker 1: make that money back. But with crypto they can put
Speaker 1: it in and instantly make five, ten, twenty thirty times
Speaker 1: on their money. They loved it. If you're just tune in,
Speaker 1: you're listening to the Mark Moa show. We are talking
Speaker 1: about the ft X fiasco, how it's melted down the
Speaker 1: cryptocurrency space, and I'm explained how it works. I gotta
Speaker 1: break all this down for you. Have a very ambitious show.
Speaker 1: I'm gonna try and get through really quickly. Don't go away,
Speaker 1: I'm gonna be right back. All right, welcome back. If
Speaker 1: you're just tuning in, we're talking about the ft X fiasco.
Speaker 1: I'm explaining to you how it worked. It's the key piece.
Speaker 1: You have to understand how it worked to understand where
Speaker 1: this goes. And this is what most people misunderstand. I've
Speaker 1: been putting it out on Twitter, and people don't understand
Speaker 1: because you're going to get you know whatever, whatever tun characters.
Speaker 1: I think it is. Um. If you're not following me
Speaker 1: on Twitter and you want to play by play, you should.
Speaker 1: You can find me on social media, Twitter, Instagram, whatever,
Speaker 1: at one, the number one at number one, Mark Moss. Anyway, So, uh,
Speaker 1: Sam Bankman Fried, I'm reading a quote directly from an
Speaker 1: interview here. He says that, uh, you know, these sophisticated firms,
Speaker 1: these venture capitalists are like, wait, so I can make
Speaker 1: all this money. And so that's the point that I
Speaker 1: want to make. This is how it works. You have
Speaker 1: a company, they artificially create a token. They say it's
Speaker 1: going to change the world, but really it does nothing.
Speaker 1: They start wash trading, they start moving money in and
Speaker 1: out of it to look like it has some activity.
Speaker 1: They thinly trade and they take a small percentage and
Speaker 1: they artificially push the price up. Then when they artificially
Speaker 1: pushed the price up and people artificially think there's actually
Speaker 1: some value there, then those people will want to buy it.
Speaker 1: So then they do that with Alameda, and then they
Speaker 1: list the token on the exchange on ft X, and
Speaker 1: then everybody wants to trade that token because they think
Speaker 1: that token has some value because Alameda faked it. And
Speaker 1: then f t X makes all the money because you're
Speaker 1: buying and selling it, so as you trade it, they
Speaker 1: make money. So everybody's making money and they dump it
Speaker 1: on you. And it's important to understand this key piece here.
Speaker 1: All Right, we're gonna come back to this um towards
Speaker 1: the end when we start talking about the regulations and
Speaker 1: where I think the places of the space is going
Speaker 1: to go and how it's going to affect things. So
Speaker 1: that's kind of how it worked. Alameda would create these
Speaker 1: tokens out of thin air, or they would actually help
Speaker 1: create these tokens out of thin air. They would bring
Speaker 1: on companies, thousands of companies to create these box tokens.
Speaker 1: As Sam n Freed says, Alameda would then artificially create
Speaker 1: a market around it, and then ft X would list
Speaker 1: it so then you could buy and sell it and
Speaker 1: they could all make money off of you. All right,
Speaker 1: So that's how all of this worked, and that's how
Speaker 1: cryptocurrency works overall. Now we can see that it wasn't
Speaker 1: just the venture capitalists that love this. Of course, as
Speaker 1: I said, the venture capitalists do absolutely love it because
Speaker 1: everyone loves it. The company that makes the box token
Speaker 1: loves it because they get cashed out huge. The venture
Speaker 1: capitalists love it because instead of having lock up money
Speaker 1: for seven to ten years, they can instantly get on
Speaker 1: their money. The media loved it because they had something
Speaker 1: to talk about. The media also loved it because they
Speaker 1: got massive amounts of money in terms of advertising dollars.
Speaker 1: This is why you need to learn to manage your
Speaker 1: own money. You cannot trust financial news sources. You can't
Speaker 1: trust the finance magazines. You can't trust the Jim Cramer's
Speaker 1: of the world on TV. You can't trust any of
Speaker 1: them because they're financially incentivized to sell you the stuff
Speaker 1: of their sponsors. Open up any of your financial magazines
Speaker 1: and look who's running ads in there. Those ads are
Speaker 1: going to dictate what that magazine can talk about. If
Speaker 1: the magazine talks about things that ads don't like, the
Speaker 1: advertisers won't advertise their same on TV. If TV talks
Speaker 1: bad about the people writing the checks, the people writing
Speaker 1: the checks won't write the checks. It's a horrible incentive system. Now,
Speaker 1: if you listen to me, I'm not incentivized to sell
Speaker 1: you any products. I'm just going to tell you the truth,
Speaker 1: all right. By the way, I try to do that
Speaker 1: on my YouTube channel. You're not following my YouTube channel.
Speaker 1: You should just search Mark moss On on YouTube all
Speaker 1: right now. Um f t X has been paying lots
Speaker 1: and lots and lots of money to advertise. They don't
Speaker 1: pay me any money, but they pay lots of money
Speaker 1: as a matter of factually, says Cryptocurrency Exchange. F t
Speaker 1: X spent tens of millions of dollars over the past
Speaker 1: couple of years on slick marketing efforts, including sports sponsorship
Speaker 1: deals and celebrity laden TV ads featuring Tom Brady and
Speaker 1: Larry David. Not tens of millions, that's wrong. On national television.
Speaker 1: Three major crypto companies spent a hundred and fifty three
Speaker 1: million on advertising this year through the end of October,
Speaker 1: So just this year to date, a hundred and fifty
Speaker 1: three million. That's more than triple the forty six million
Speaker 1: the three companies spent during all of last year. So
Speaker 1: just year to date, they've spent triple what they did
Speaker 1: for the entire last year. So the TV companies, the
Speaker 1: media companies, they need this money and so they can't
Speaker 1: say anything critical about this. They can't turn down their
Speaker 1: money they needed. The incentive structure is broken. We can
Speaker 1: see that before the implosion of FTX, crypto brands had
Speaker 1: begun to slow their spending as cryptocurrency valuations declined earlier
Speaker 1: this year and as scrutiny for regulators grew over some
Speaker 1: of the sector's marketing practices. Estimates from ice spots showed
Speaker 1: that crypto brands spent a paltry three point five million
Speaker 1: on TV ads from August through October. By comparison, the
Speaker 1: sector spent eighty four million in February. So since the
Speaker 1: cryptocurrency markets have been crashing down since about May of
Speaker 1: this year. Companies have been spending less and less and less.
Speaker 1: In February they spent eighty four million, but for the
Speaker 1: last three months they've only spent three point five. Now,
Speaker 1: part of that, I'm guessing is because, um, in February,
Speaker 1: it was the Super Bowl, and so of course they
Speaker 1: spent a bunch of money in the super Bowl. Super
Speaker 1: Bowl was held February, and it was lots of these
Speaker 1: crypto companies that were advertising there. UM thirty second add
Speaker 1: time went for as much as seven million dollars, which
Speaker 1: is insane. UM ft X is to Crypto Exchange. The
Speaker 1: Bahamas based ft X Trade Limited and US based ft
Speaker 1: X spent more than two hundred and twenty million on
Speaker 1: sales and marketing last year from six million, So you
Speaker 1: can understand really quickly how misaligned these are. UM. It's
Speaker 1: also gonna be a big problem moving forward because it
Speaker 1: says her crypto companies signed roughly seventy new sports sponsorship
Speaker 1: deals last year, spending an estimated two hundred million on
Speaker 1: the agreements. So what about all these sports companies? What
Speaker 1: about these sponsorships. F t X had committed to spend
Speaker 1: more than nine hundred million on sponsorship as part of
Speaker 1: multi year deals. So they named the nine NBA's Miami
Speaker 1: heat Stadium the ft X Arena, you know, Major League Baseball, UM,
Speaker 1: on and on and on. So what about all those companies,
Speaker 1: what are they going to do moving forward? That's gonna
Speaker 1: be a big problem. It says here AD executive said
Speaker 1: it will be very hard for sports leagues to replace
Speaker 1: the cryptocurrency category. So now you understand why this crypto
Speaker 1: height blue so big. And this is what people aren't understanding. Um,
Speaker 1: when I put this out on Twitter, I said, look,
Speaker 1: I think these regulations are going to probably be the
Speaker 1: end of the crypto bull run. There probably won't be
Speaker 1: another cryptocurrency bull run. And the reason why I say
Speaker 1: that is because of regulations. And people say, oh, but
Speaker 1: you know, they'll just move off shore. Yeah, it probably will.
Speaker 1: But if the media can't advertise it, if the venture
Speaker 1: capitalists can't put money in, there will be no hype.
Speaker 1: There will be no mania hysteria over this. So I'm
Speaker 1: not saying that government regulations are going to stop innovation,
Speaker 1: certainly not. Of course, nothing will ever stop innovation. However,
Speaker 1: it can stop the mania. If you can't advertise it.
Speaker 1: You can't put you know, name, stadiums and all of
Speaker 1: those things. Okay, So let's keep digging into this a
Speaker 1: little bit. Let's talk about, um, how bad this fraud was.
Speaker 1: All right. This is not just some innocent mistake. This
Speaker 1: was perpetrated. This was intentionally done, and it was intentionally
Speaker 1: done and perpetrated with the highest levels of governance and
Speaker 1: security and scrutiny in the world, not just the United States,
Speaker 1: but the world. So let's dig into that now. Uh.
Speaker 1: First of all, so f t X the founder Sam
Speaker 1: Bankman Freed SPF Bankman Freed. So that name is hyphenated
Speaker 1: Bankman and Freed. Why is it hyphenated, Well, that's because
Speaker 1: his parents, one Bankman and one Freed, are both let's say,
Speaker 1: known in their respective fields. So I guess he decided
Speaker 1: to take on both of their names and hyphen it.
Speaker 1: His parents weren't hyphenated, but he wanted to take on
Speaker 1: both of their names, I guess because they're both accomplished,
Speaker 1: and they're both accomplished professors in the legal space his
Speaker 1: father were both of them right policy and guidance on
Speaker 1: things like tax policy. His father has written many influential
Speaker 1: papers on eliminating cash, which is something I'm not a
Speaker 1: fan of Um. So they want to get rid of cash,
Speaker 1: they want to change the financial system, they want to
Speaker 1: enforce tax policy. That's who his parents are. They're also bundlers,
Speaker 1: which means they take in lots of money, large amounts
Speaker 1: of money, and bundle them together and donate them to
Speaker 1: super PACs which donate massive sums of money to political parties,
Speaker 1: in their case the Democratic Political Party. But that's not all.
Speaker 1: We're actually barely scratching the surface of their government global
Speaker 1: government ties. If you're just tuning and listen to the
Speaker 1: Mark Moas Show, we're breaking down the f t X
Speaker 1: story for you. Here, I got a whole lot to go. Um,
Speaker 1: don't go away, I'll right back, all right, Welcome back
Speaker 1: to you. Just tune in. You're listening to the Mark
Speaker 1: Moss Show. We are breaking down the f t X
Speaker 1: story for you. The second largest cryptocurrency exchange going down.
Speaker 1: And it is not a case of ignorance. It is
Speaker 1: not a case of a good guy getting it wrong.
Speaker 1: This is a case of fraud at the highest level,
Speaker 1: and the government level, at the regulatory level, at the
Speaker 1: global governance level. It's a story that big. We're just
Speaker 1: talking about that. So the founder, Sam Bankman Fried, his
Speaker 1: parents are are deep state connected, UM, massive political donors.
Speaker 1: We talked about that. Uh. F t X is also
Speaker 1: a partner with the World Economic Forum, which of course
Speaker 1: I've talked about extensively UM. And that's not just a coincidence.
Speaker 1: His aunt also works for the World Economic Forum, also
Speaker 1: part of John Hopkins, which of course was very instrumental
Speaker 1: in this whole pandemic to a one. You know where
Speaker 1: they did the pandemic test before the pandemic actually happened,
Speaker 1: So massive ties there. And of course it doesn't surprise
Speaker 1: you then that Sam Bankman Freed SPF and his brother
Speaker 1: are also heavily involved in the pandemic space. Will call
Speaker 1: it that UM, both in pushing policy, raising money, and
Speaker 1: trying to enforce rules around pandemic response, including supposedly trying
Speaker 1: to save us saved the world from the next next pandemic.
Speaker 1: F t X founder Sam Bankman Fried said that it's
Speaker 1: such a shame that he lost all his money because
Speaker 1: how are they going to stop the next pandemic? Now,
Speaker 1: that's what he said. Never mind the hundreds of thousands
Speaker 1: of families that you probably condemned to death by stealing
Speaker 1: their life savings. He wants to pretend like his goal
Speaker 1: was to stop the world, save the world from a pandemic.
Speaker 1: I mean, it's just insane anyway. Um. So let's so,
Speaker 1: so we have ties into the government through the Democratic Party,
Speaker 1: We have ties into the World Econmic Forum. We also
Speaker 1: have ties into the Ukrainian government. And so when the
Speaker 1: Russia Ukraine situation broke out, Um, the media, remember the
Speaker 1: media is always at the center of this. The media
Speaker 1: thought that it would be important to get the support
Speaker 1: of the people. So they started running all these stories
Speaker 1: and we have to support the Ukrainian people, and everybody
Speaker 1: put Ukrainian flags up all over the place. Um, and
Speaker 1: let's all donate our money for the Ukrainian people. And
Speaker 1: of course they wanted to do that with cryptocurrencies. Now,
Speaker 1: how do we bundle all of these cryptocurrency donations together
Speaker 1: into one and give this cryptocurrency as money to Ukraine. Well,
Speaker 1: it would probably not surprise you. As I said, his
Speaker 1: parents are in fact bundlers. It's actually what they do.
Speaker 1: So f t X said, Hey, we got a good
Speaker 1: idea of Ukraine. Why don't we partner up will be
Speaker 1: the official cryptocurrency bundler for you. We'll go ahead and
Speaker 1: take all that cryptocurrency for you, and then we'll give
Speaker 1: it to you. So f t X had to get
Speaker 1: in the middle of the Ukraine donations partner with the
Speaker 1: Ukraine government. Now we don't know if there was any
Speaker 1: wrongdoing there. Um. We don't know how much of that
Speaker 1: they took or kept, if at all. UM. So I
Speaker 1: don't want to create allegations that I can't back up.
Speaker 1: But what I do know is that where there's smoke,
Speaker 1: there's fire. Um. What we do know unequivocally is that
Speaker 1: Sam bankman Fried is potentially one of the biggest scammers
Speaker 1: defrauders um that we've seen in decades since Bernie Madoff's time.
Speaker 1: We do know that, and so well, this looks pretty shady,
Speaker 1: and given the fact that he's probably the largest scam
Speaker 1: artist alive right now, it would make sense that there
Speaker 1: was probably some improprietary there, right, I would just guess,
Speaker 1: but I don't have I don't have hard facts about that.
Speaker 1: But we do know that he was involved doing what
Speaker 1: his parents do, which is of course bundling. There's also
Speaker 1: some other weird um coincidences will call him that here
Speaker 1: um which is uh. Let's see f t X just
Speaker 1: happened to be founded right at the time that the
Speaker 1: Biden administration announced that they're going to run for a president.
Speaker 1: Um F t X was also the second largest donor
Speaker 1: for the Biden campaign. Um F t X also or
Speaker 1: Sam Bankman Fried also donated over forty million dollars for
Speaker 1: the Demmocratic Party in the mid terms in elections like
Speaker 1: where John Fetterman beat Dr Oz forty million dollars to
Speaker 1: influence the elections. But it goes even worse than that
Speaker 1: with this money. So there's a walk through this for
Speaker 1: a second. So Sam Bankman freed with his two companies,
Speaker 1: Alameda and FTX. He created a fake token and artificially
Speaker 1: gave it value with his own company by pumping and
Speaker 1: dumping it, by by pretending it had value, by wash
Speaker 1: trading it by himself. Then he created it, made it
Speaker 1: have values. So he created all this money out of
Speaker 1: thin air. Then he took that money that he counterfeited.
Speaker 1: Let's call it that he took this money that he
Speaker 1: counterfeited and then used that money to go influence politics
Speaker 1: by an administration massively influenced the midterm elections and then
Speaker 1: buy off the regulators, the SEC, giving money to the SEC,
Speaker 1: Goovern mention to c FTC, hiring all the people from
Speaker 1: the c FTC to come work for him with money
Speaker 1: he counterfeited. Then he went to go meet at the
Speaker 1: highest levels of government to then create policy, to create laws,
Speaker 1: to create regulations, and of course these regulations that he
Speaker 1: is creating using funds that he stole within benefit who well,
Speaker 1: of course they're going to benefit him. That's the way
Speaker 1: it works. You take this money and you create regulations
Speaker 1: that protect you but prevent anybody else from coming in
Speaker 1: and coming after you and taking away your position. That's
Speaker 1: how it works. Now, there's lots of improprietary Like I said,
Speaker 1: hundreds of thousands of families have lost their life savings
Speaker 1: over this. Probably people will take their lives over this.
Speaker 1: To him, it's a couple of numbers on a keyboard.
Speaker 1: Do you think the Democratic Party might give back any
Speaker 1: of the forty million that they took? Maybe the Democratic
Speaker 1: Party gives back some money to make these Americans whole.
Speaker 1: My guess is probably, Now will there be massive regulations
Speaker 1: coming down against this? Now? We know that again just
Speaker 1: a dot to connect. We don't know. But we we
Speaker 1: do know is that Sam Bakman Fried's girlfriend who ran
Speaker 1: the sister company Alameda, her father, um Gary Ellison, was
Speaker 1: the SEC chiefs boss at M I T. So the
Speaker 1: guy Gary Ginsler, who's the chair of the SEC, which
Speaker 1: is supposed to be the agency in the United States,
Speaker 1: is supposed to keep you safe and make sure that
Speaker 1: you don't lose your money. That's their job. Securities Exchange
Speaker 1: Commission is to protect consumers. That's their job. They didn't
Speaker 1: do a very good job. As a matter of fact,
Speaker 1: they missed potentially the biggest fraud and scam that we
Speaker 1: have seen in most of our lifetimes. They completely missed it.
Speaker 1: They didn't keep you safe, and it just so happens
Speaker 1: that he worked for the girl's dad. Mm hmm. That.
Speaker 1: You know, we we can sit here and talk about
Speaker 1: quinces all day, but sometimes there's just too much of
Speaker 1: a coincidence. And you know, there's such a thing called
Speaker 1: conflict of interests, and typically what happens is in like
Speaker 1: a legal case or something like that, a judge or
Speaker 1: a lawyer or something like that might have to step
Speaker 1: down and they couldn't work on that because of you know,
Speaker 1: supposed conflict of interest, not because they did anything wrong,
Speaker 1: not because they would even do anything wrong, but they
Speaker 1: would do it just so there was no uh no thought,
Speaker 1: no no, no doubt that there could be some imprietary
Speaker 1: So um Tam Magmnfried's girlfriend who ran Alameda, the sister company,
Speaker 1: her father was the head of the SEC's boss. Sounds
Speaker 1: really bad. It sounds really really bad. And then we
Speaker 1: have um Sam bankman Free donating all this money to
Speaker 1: the CFTC, which is the other regulatory body, donating tons
Speaker 1: of money to Maxine Waters, who's supposed to be in
Speaker 1: charge of this whole thing. And Maxine Waters is now
Speaker 1: basically trying to dodge all this. She said, quote, I
Speaker 1: don't want to get into that topic. End quote, avoiding
Speaker 1: questions saying, well, I don't want to get into that.
Speaker 1: As a matter of fact, both sides Democrats received donations.
Speaker 1: She said, thank you, no, no, no, no, no. Forty
Speaker 1: million dollars went to the Democrat party. Now maybe there
Speaker 1: was a few other Republicans in there. We don't know.
Speaker 1: We'll find all this out. If you're just tuning in,
Speaker 1: you're listening to the Mark Moa show, we are talking
Speaker 1: about the f t X blow up, the cryptocurrency market
Speaker 1: melt down, and the fraud that happened because of that.
Speaker 1: So we have just getting into this story. As a
Speaker 1: matter of fact, I'll call this just part one, and
Speaker 1: I am going to continue into this story to talk
Speaker 1: about what's going to happen and where this goes in
Speaker 1: the future on part two. So if you want to
Speaker 1: join me catch me on the podcast, just check out
Speaker 1: Mark Boston your favorite podcast player, check me out on
Speaker 1: YouTube as well, and that's what I got. Thanks for listening.