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Speaker 1: All right, let's get back to the cryptocurrency story really

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Speaker 1: grabbing global headlines. It's Binances. It backed out of its

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Speaker 1: takeover of FTX dot com Big Big Blue. For investors

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Speaker 1: that were hoping that Binance would support ft x's customers

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Speaker 1: to give them liquidity. Let's get over to Douglas both Week,

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Speaker 1: chief business office at I n X Limited. Douglas so

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Speaker 1: give us a sense of what happened here and whether

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Speaker 1: we should be concerned about this being the canary in

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Speaker 1: the coal mine. Well, I think that we all knew

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Speaker 1: this was can happen um a couple of days ago

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Speaker 1: when cz over A Binance tweeted that he was looking

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Speaker 1: into f t X, didn't like what he saw and

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Speaker 1: he was going to start selling aggressively their token. I

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Speaker 1: think it was five million dollars of it, so it

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Speaker 1: certainly telegraphed as he did that. Obviously there was a run.

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Speaker 1: That run on the bank essentially meant that f t

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Speaker 1: X I think it was six billion dollars of outflows

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Speaker 1: and it seems that they couldn't cover it. Um. Then

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Speaker 1: they signed a non binding l o I, and I

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Speaker 1: think we all agree that a non by lloy means

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Speaker 1: very very little today cz command said, you know what,

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Speaker 1: we're not going to buy it after all, and you

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Speaker 1: saw continued contagion in the market. So obviously bitcoins taking

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Speaker 1: a bit of a hit, a lot of all coins

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Speaker 1: are taking a hit. It's it's a bit of a mess.

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Speaker 1: I think the media right now is concentrating on the

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Speaker 1: people that invested in the equity rounds at f t

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Speaker 1: X and how much they're going to get hurt. But

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Speaker 1: you have to remember there's a lot of investors that

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Speaker 1: have their money now locked in at f t X,

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Speaker 1: and who knows when that money is gonna be allowed

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Speaker 1: to come out again. I mean, there's a bit of

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Speaker 1: stink on this isn't there from the way that c

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Speaker 1: z JAW handled this and the way that it unveiled

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Speaker 1: or rolled out. From a regulations standpoint, well, I think, well,

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Speaker 1: on a regulatory stand standpoint, neither of these companies seemed

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Speaker 1: regulated inside the United States. None of them are public companies,

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Speaker 1: neither of them are audited in the United States and

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Speaker 1: so and neither of them way I believe can have

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Speaker 1: US investors invest in them, um and so that that's

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Speaker 1: one point. But you know, I think that one of

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Speaker 1: the big stinks that's coming out is that it seems

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Speaker 1: that f t X was using their own token and

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Speaker 1: perhaps buying that with customer funds that were deposited on

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Speaker 1: the exchange, pumping up the price of it, and then

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Speaker 1: using that pumped up price to then go out there

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Speaker 1: and purchase other companies. UM. And that sort of thing

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Speaker 1: I think people look at and think that's that doesn't work.

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Speaker 1: That's very off, very odd. But do you know, asking

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Speaker 1: you whether this was the current canary in the comn

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Speaker 1: I was referring to f t X, do you think

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Speaker 1: the many others like this out there and what does

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Speaker 1: it tell you about the crypto space? But I certainly

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Speaker 1: think that there's a lot of palaces that are built

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Speaker 1: on sand, and I think that we need to remember

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Speaker 1: that and a lot of guys that kind of rushed

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Speaker 1: out to the Facebook model and break it then fix it. Um.

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Speaker 1: They did that with a m l K y C.

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Speaker 1: They've done it obviously with the way that they've not

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Speaker 1: really had auditors in making sure that they do things

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Speaker 1: that they say they're doing. UM. I think that a

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Speaker 1: lot of folks are now looking at other these exchange

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Speaker 1: tokens and how are they you Easton. How are they

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Speaker 1: manipulated by other companies that have exchanged tokens. My company

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Speaker 1: has an exchange token, but it's a registered security. It's

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Speaker 1: the only fully registered security public security that exists for

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Speaker 1: an exchange, and so we're audited. Um, We've got rules

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Speaker 1: that we have to follow as a company, and none

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Speaker 1: of these other companies seem to have these rules. It's

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Speaker 1: very hard to know, you know, the the finances. Uh

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Speaker 1: and um, you know, we don't know obviously, you know,

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Speaker 1: you don't know when someone's cheating. But it's very worse.

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Speaker 1: And because sam Banquan Freed and FTX had been almost

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Speaker 1: a savior of sorts for a number of other exchanges

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Speaker 1: and another other a number of other companies, you know,

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Speaker 1: sort of backstopping them. If you'd asked me a week ago,

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Speaker 1: you know whether or not this company was very likely

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Speaker 1: to to fall into this kind of trap, I just said, oh,

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Speaker 1: it's probably one of the least likely. Well. I think

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Speaker 1: that this is an interesting thing here, and that there's

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Speaker 1: been a lot of distressed assets, both on the minor

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Speaker 1: site and exchanges in the market, and I think that

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Speaker 1: Binance and f t X have both been bidding for

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Speaker 1: them and there's been a bit of a back and

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Speaker 1: forth between the two and CZ certainly that's the head

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Speaker 1: of Binance certainly went out there and said, look, I

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Speaker 1: don't like how we're being dragged through the mud in

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Speaker 1: terms of the regulators, and I think that that sort

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Speaker 1: of personal TIFFs sort of set off everything else, and

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Speaker 1: that he decided he was going to kind of pull

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Speaker 1: up the curtain on on what was going on at

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Speaker 1: f t X and obviously has created this. But you know,

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Speaker 1: it's an absolute mess. Canarian the coal mine is correct.

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Speaker 1: But you know, this is the third time we've seen this.

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Speaker 1: We saw Celsius go down doing similar type things, we

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Speaker 1: saw Voyager go down similar type things, and now we

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Speaker 1: see f t X going down, and you know, I

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Speaker 1: think people are wondering who's going to be next. Well,

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Speaker 1: this is it, isn't it. I Mean the thing is

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Speaker 1: crypto clients who have kind of shunned the industry from

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Speaker 1: being regulated may well start demanding, as you put it

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Speaker 1: in your notes, regulation with regards certain where does that

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Speaker 1: leave things? You know, Mike Mike Tyson always said that

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Speaker 1: everyone's a champion until they get punched in the face.

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Speaker 1: And I think that everyone wants to be bankless until

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Speaker 1: the company they're dealing with goes bankrupt, and then they're

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Speaker 1: wondering why the regulators aren't stepping in, where's my f

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Speaker 1: D I C insurance, where's the regulators, where's the backstop

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Speaker 1: from the Fed? And then the reality is I think

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Speaker 1: that we're going to see more regulation and more safeties,

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Speaker 1: certainly for US investors. It's been tough for for coin

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Speaker 1: Base and and robin Hood. Uh, you know, slightly different

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Speaker 1: businesses obviously, but those stocks are down in just two

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Speaker 1: days of trading. Um, we'll have to leave it there, Douglas,

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Speaker 1: Thank you. Douglas Boorthwick, Chief business Officer at I n

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Speaker 1: X Limited,