1 00:00:00,000 --> 00:00:02,400 Speaker 1: Hello, and welcome to another episode of The Mark mo Show, 2 00:00:02,400 --> 00:00:06,320 Speaker 1: where we're talking about the decentralized Revolution. Of course, each 3 00:00:06,320 --> 00:00:09,280 Speaker 1: and every week we talked about through the lens of politics, finance, 4 00:00:09,320 --> 00:00:12,479 Speaker 1: and technology, and the story we are talking about today 5 00:00:12,760 --> 00:00:18,320 Speaker 1: is really a battle over decentralization, what people think is 6 00:00:18,400 --> 00:00:22,720 Speaker 1: decentralized versus what really is. And this really is about 7 00:00:22,760 --> 00:00:27,440 Speaker 1: cryptocurrency and what is decentralized and what is centralized, and 8 00:00:27,960 --> 00:00:30,400 Speaker 1: it's centralized. That is the problem, which is what we're 9 00:00:30,440 --> 00:00:32,120 Speaker 1: trying to get away from, which is why we're talking 10 00:00:32,120 --> 00:00:37,000 Speaker 1: about the decentralized Revolution. Now, if you are just tuning 11 00:00:37,080 --> 00:00:39,240 Speaker 1: in and you've missed. In the beginning, we talked about 12 00:00:39,280 --> 00:00:41,840 Speaker 1: this f t X blow up in the cryptocurrency space. 13 00:00:42,120 --> 00:00:45,800 Speaker 1: We framed up um how this whole thing worked, how 14 00:00:45,800 --> 00:00:48,200 Speaker 1: they are two companies worked, how they create value out 15 00:00:48,200 --> 00:00:51,159 Speaker 1: of thin air, why venture capitalists love it, why the 16 00:00:51,200 --> 00:00:53,640 Speaker 1: media loves it, why advertisers love it, why it got 17 00:00:53,720 --> 00:00:56,320 Speaker 1: so much hype and play. Then we got into the 18 00:00:56,400 --> 00:01:00,280 Speaker 1: deep ties that Sam Bankman Freed, the founder of ft X, 19 00:01:00,320 --> 00:01:03,920 Speaker 1: have inside the government. So if you missed any of that, 20 00:01:04,080 --> 00:01:07,440 Speaker 1: go back and check out our one on the podcast. 21 00:01:07,720 --> 00:01:11,399 Speaker 1: You can link to that um or um check me 22 00:01:11,400 --> 00:01:13,840 Speaker 1: out on YouTube as well, just search Mark Moss and 23 00:01:14,040 --> 00:01:17,400 Speaker 1: watch me there as well. Now let's keep going in here. 24 00:01:17,440 --> 00:01:20,480 Speaker 1: So we were talking about the deep ties that they 25 00:01:20,520 --> 00:01:22,640 Speaker 1: have to the government, and that's part of the problem, 26 00:01:22,680 --> 00:01:25,199 Speaker 1: of course, right, It's always about the favors. It's always 27 00:01:25,200 --> 00:01:27,160 Speaker 1: about the money that you want to put into the market. 28 00:01:27,480 --> 00:01:29,679 Speaker 1: And we know that there were deep ties, like I said, 29 00:01:29,720 --> 00:01:32,400 Speaker 1: deep ties with the World I Coming Forum, deep ties 30 00:01:32,520 --> 00:01:36,560 Speaker 1: even in the Ukrainian government, deep ties into the US government, 31 00:01:36,680 --> 00:01:39,360 Speaker 1: both in donating being the second largest donor to the 32 00:01:39,440 --> 00:01:44,319 Speaker 1: binder Bind administration and then donating over forty million dollars 33 00:01:44,600 --> 00:01:48,440 Speaker 1: for the mid term elections, basically influencing every election across 34 00:01:48,480 --> 00:01:53,680 Speaker 1: the country. Big big, big big deals um. On top 35 00:01:53,760 --> 00:01:56,120 Speaker 1: of this, as as bad as that is, then we 36 00:01:56,200 --> 00:01:59,280 Speaker 1: also know that there's connections with the regulatory bodies, the 37 00:01:59,360 --> 00:02:04,080 Speaker 1: SEC and the CFTC. We can see here that Sam 38 00:02:04,120 --> 00:02:07,040 Speaker 1: Bankman Freed's father, so I said, both of his parents 39 00:02:07,080 --> 00:02:12,160 Speaker 1: are very connected into the Democratic Party, both in influencing policy, writing, 40 00:02:12,200 --> 00:02:16,240 Speaker 1: policy and so forth. We can see here that we 41 00:02:16,280 --> 00:02:21,079 Speaker 1: can see here that Sam Bankman Freed's father actually drafted 42 00:02:21,160 --> 00:02:27,400 Speaker 1: tax legislation force Senator Elizabeth Warren and donated thousands of 43 00:02:27,440 --> 00:02:31,600 Speaker 1: dollars to their party. So Senator Elizabeth Warren, who of 44 00:02:31,639 --> 00:02:34,840 Speaker 1: course has been very very outspoken about this, and she's 45 00:02:34,840 --> 00:02:36,720 Speaker 1: going to get to the bottom of this, and she's 46 00:02:36,720 --> 00:02:40,120 Speaker 1: going to fix this and she needs to protect the people. Meanwhile, 47 00:02:41,160 --> 00:02:44,760 Speaker 1: the guy's father writes her legislation and her policies and 48 00:02:44,800 --> 00:02:49,760 Speaker 1: donates money to her campaign. Oh what a tangled web 49 00:02:50,040 --> 00:02:53,880 Speaker 1: this is. She introduced a bill called the Tax Filing 50 00:02:53,919 --> 00:02:59,200 Speaker 1: Simplification Act in Warren, who currently chairs both the Senate 51 00:02:59,240 --> 00:03:03,919 Speaker 1: Banking Committee Economic Policy and the Senate Finance Committee's Fiscal 52 00:03:03,960 --> 00:03:12,160 Speaker 1: Responsibilities of Committee. Um, is somehow connected to this. Now, 53 00:03:12,560 --> 00:03:14,040 Speaker 1: you know, I'm not saying she's a part of it. 54 00:03:14,040 --> 00:03:16,680 Speaker 1: I'm not going to draw that conclusion. But again, this 55 00:03:16,919 --> 00:03:25,200 Speaker 1: goes deep. Bankman Fried says here was donated the Democratic Party. 56 00:03:25,240 --> 00:03:28,760 Speaker 1: We're talking about that, all right, So that's part of it. Um. 57 00:03:28,840 --> 00:03:31,040 Speaker 1: We also know, like I said earlier, if he just 58 00:03:31,080 --> 00:03:34,560 Speaker 1: tuned in, that his girlfriend ran the sister company Alameda, 59 00:03:35,080 --> 00:03:39,920 Speaker 1: which UM, her father was the boss of Gary Ginsler, 60 00:03:40,080 --> 00:03:43,840 Speaker 1: the head of the SEC. We also know that, Um, 61 00:03:43,960 --> 00:03:48,600 Speaker 1: when all of this came out um FTX froze everybody's money, 62 00:03:48,640 --> 00:03:51,640 Speaker 1: wouldn't allow anybody to get out. Um, there was about 63 00:03:51,640 --> 00:03:56,360 Speaker 1: a billion dollars sitting on the exchange that could potentially, 64 00:03:56,440 --> 00:04:00,920 Speaker 1: you know, get divided up between customers or could get 65 00:04:02,640 --> 00:04:06,760 Speaker 1: you know, divided up creditors or something like that. Um, 66 00:04:06,800 --> 00:04:09,040 Speaker 1: there was about one point seven billion dollars in assets 67 00:04:09,040 --> 00:04:14,920 Speaker 1: there and then they just disappeared. So f t X says, oh, 68 00:04:15,000 --> 00:04:17,839 Speaker 1: there's a hack. There was a hack. All that money 69 00:04:17,920 --> 00:04:22,880 Speaker 1: just disappeared, which is pretty coincidental. Right again, where they're smoked, 70 00:04:22,880 --> 00:04:26,720 Speaker 1: there's fire. Um it says that it might be taken 71 00:04:26,800 --> 00:04:29,599 Speaker 1: up by the SEC and d o J in their investigations. 72 00:04:29,600 --> 00:04:35,320 Speaker 1: But Bankman Freed allegedly allegedly implemented a back door in 73 00:04:35,480 --> 00:04:40,000 Speaker 1: t f into f d x's book keeping system. Reuters 74 00:04:40,040 --> 00:04:42,320 Speaker 1: repeated that the alleged back door enabled Bankman Freed to 75 00:04:42,440 --> 00:04:46,640 Speaker 1: execute commands that could alter the company's financial records without 76 00:04:46,960 --> 00:04:53,880 Speaker 1: alerting other people, including external auditors. The very fact that 77 00:04:53,920 --> 00:04:58,040 Speaker 1: they would have something like this again, why do you 78 00:04:58,120 --> 00:05:01,680 Speaker 1: build something like this so you could move funds without 79 00:05:01,720 --> 00:05:06,040 Speaker 1: alerting auditors unless you are moving funds without alerting auditors, 80 00:05:06,279 --> 00:05:09,280 Speaker 1: or you want to move funds with like like uh, 81 00:05:09,360 --> 00:05:11,159 Speaker 1: I mean this is like this whole like, uh, you 82 00:05:11,200 --> 00:05:14,880 Speaker 1: know now now all this conspiracy that people were the 83 00:05:15,000 --> 00:05:18,600 Speaker 1: platform for for saying that, you know, the COVID could 84 00:05:18,600 --> 00:05:21,280 Speaker 1: have come from a lab, and now the government says, yeah, 85 00:05:21,320 --> 00:05:23,760 Speaker 1: it actually did come from a lab. Uh. But why 86 00:05:23,839 --> 00:05:26,320 Speaker 1: were they work why do they work on these things 87 00:05:26,320 --> 00:05:29,240 Speaker 1: in a lab? Like what's what's the point unless you 88 00:05:29,240 --> 00:05:31,640 Speaker 1: want to use them? Right, and so why would you 89 00:05:31,640 --> 00:05:34,320 Speaker 1: build a back door unless you want to use it? 90 00:05:34,400 --> 00:05:38,800 Speaker 1: And it gets even better than that. So the there's 91 00:05:38,800 --> 00:05:43,480 Speaker 1: a guy named Dan Freedberg who is the Chief Regulatory 92 00:05:43,520 --> 00:05:48,760 Speaker 1: Officer the middle word regulatory, the chief regulatory officer, the 93 00:05:48,839 --> 00:05:53,599 Speaker 1: guy who's supposed to be in charge of regulations, Dan Freeburg. Oh, 94 00:05:53,720 --> 00:05:55,760 Speaker 1: he's got a troubled past. It's a matter of fact. 95 00:05:55,920 --> 00:05:59,800 Speaker 1: He comes from another company called Ultimate Bets that got 96 00:06:00,000 --> 00:06:04,680 Speaker 1: brought up on charges of having what, oh a back door? 97 00:06:05,480 --> 00:06:09,159 Speaker 1: M hmm seems pretty coincidental. So he had a company 98 00:06:09,160 --> 00:06:13,440 Speaker 1: called Ultimate Bets that was fined massively for having a 99 00:06:13,520 --> 00:06:16,800 Speaker 1: back door something he called god code that allowed him 100 00:06:16,800 --> 00:06:21,240 Speaker 1: to see all the hands of all the other gamblers 101 00:06:21,240 --> 00:06:25,920 Speaker 1: on the platform, so then he could then play against them. 102 00:06:26,080 --> 00:06:30,760 Speaker 1: Imagine being playing poker and seeing all your opponents cards, 103 00:06:30,880 --> 00:06:33,600 Speaker 1: knowing when you could bluff them, knowing when you should fold, 104 00:06:33,720 --> 00:06:36,240 Speaker 1: et cetera. And that's what he built in, and he 105 00:06:36,279 --> 00:06:39,159 Speaker 1: got busted for it. And now he just happens to 106 00:06:39,160 --> 00:06:42,880 Speaker 1: be the chief regulatory officer of this company which has 107 00:06:43,240 --> 00:06:48,040 Speaker 1: a back door in which, um, you know, billions of 108 00:06:48,080 --> 00:06:52,920 Speaker 1: dollars of customer funds disappeared without triggering internal compliance or 109 00:06:52,960 --> 00:06:56,960 Speaker 1: accounting red flags. Now, bankman Freed told Reuters that he 110 00:06:57,040 --> 00:07:01,640 Speaker 1: hadn't implemented a back door, but the investigations show otherwise. 111 00:07:01,640 --> 00:07:04,240 Speaker 1: And supposedly SEC and d o J are investigating this 112 00:07:05,800 --> 00:07:10,280 Speaker 1: UM and it just keeps getting bigger and bigger and 113 00:07:10,320 --> 00:07:13,040 Speaker 1: bigger and deeper and deeper and deeper. UM. So what 114 00:07:13,080 --> 00:07:17,600 Speaker 1: else we can see here? That, as I said, the 115 00:07:17,760 --> 00:07:22,920 Speaker 1: Maxine Waters, she's now um. Democrats decided to recommit funds 116 00:07:22,920 --> 00:07:26,080 Speaker 1: from FTX donations towards charity or other party campaigns after 117 00:07:26,120 --> 00:07:29,840 Speaker 1: they filed bankruptcy. Maxine Waters is dodging questions, says she 118 00:07:29,840 --> 00:07:32,160 Speaker 1: doesn't want to get into it. She is the chairwoman 119 00:07:32,360 --> 00:07:38,360 Speaker 1: of the House Financial Services Committee. She said they would 120 00:07:38,440 --> 00:07:46,200 Speaker 1: be having a hearing to explore interesting. Um, it gets 121 00:07:46,320 --> 00:07:48,920 Speaker 1: even deeper than that if we want to keep going. 122 00:07:49,400 --> 00:07:53,120 Speaker 1: And what do I mean by that? Well, we can 123 00:07:53,160 --> 00:07:55,080 Speaker 1: see that as I said, there's massive ties to the 124 00:07:55,120 --> 00:07:59,720 Speaker 1: regulatory bodies, the SEC and the se f TC, Maxine Waters, 125 00:08:00,040 --> 00:08:03,400 Speaker 1: House Financial Committee, Um, Senator Elizabeth Warren, I mean this 126 00:08:04,600 --> 00:08:08,280 Speaker 1: the Biden administration, even the world document format, and it 127 00:08:08,280 --> 00:08:11,200 Speaker 1: goes deep, deep, deep. And again, um, where there's smoke, 128 00:08:11,320 --> 00:08:14,920 Speaker 1: there's fire. Typically, Now what happens next? And I think 129 00:08:14,920 --> 00:08:17,440 Speaker 1: this is a key piece to understanding. Now. Hopefully if 130 00:08:17,480 --> 00:08:19,560 Speaker 1: you're here on our one and you understood how this 131 00:08:19,720 --> 00:08:24,400 Speaker 1: all worked, understanding what comes next is a little bit 132 00:08:24,440 --> 00:08:27,520 Speaker 1: easier to understand. Now what comes next in the in 133 00:08:27,560 --> 00:08:30,000 Speaker 1: the in the short to mid term for stam Bankman Freed, 134 00:08:31,160 --> 00:08:34,200 Speaker 1: there's a you know, in in election markets, they run 135 00:08:34,240 --> 00:08:37,360 Speaker 1: polls to find out who gets elected. The polls aren't 136 00:08:37,360 --> 00:08:40,679 Speaker 1: typically as accurate as the betting markets are. The betting 137 00:08:40,720 --> 00:08:42,880 Speaker 1: markets are typically more accurate because people actually put their 138 00:08:42,880 --> 00:08:44,200 Speaker 1: money where their mouth is. They have to put up 139 00:08:44,240 --> 00:08:47,839 Speaker 1: money to vote versus polls. People just like say whatever, um, 140 00:08:47,920 --> 00:08:51,360 Speaker 1: And there's actually a betting market on will SPF be 141 00:08:51,520 --> 00:08:57,040 Speaker 1: federally indicted by the end of the year. Pretty interesting 142 00:08:58,440 --> 00:09:02,880 Speaker 1: and uh, you won't believe what the betting markets are saying, 143 00:09:02,960 --> 00:09:06,200 Speaker 1: or maybe you will. Um, if his money, his billions 144 00:09:06,200 --> 00:09:08,400 Speaker 1: of dollars he created out of thin air, defrauded with 145 00:09:08,480 --> 00:09:11,760 Speaker 1: counterfeit money and poured into the political parties of the 146 00:09:11,800 --> 00:09:15,080 Speaker 1: Democrats and the and the president and the regulators, maybe 147 00:09:15,240 --> 00:09:18,240 Speaker 1: will believe what this betting market says. But I'll be 148 00:09:18,280 --> 00:09:19,720 Speaker 1: back with that and more in a minute of Just 149 00:09:19,720 --> 00:09:21,400 Speaker 1: tune in your listening to the Mark Moss Show. We're 150 00:09:21,400 --> 00:09:24,719 Speaker 1: talking about the f t X fiasco, the crypto market meltdown. 151 00:09:25,240 --> 00:09:26,880 Speaker 1: We'll be back with that and more in a minute, 152 00:09:26,920 --> 00:09:28,959 Speaker 1: So don't go away, all right, Welcome back. If you're 153 00:09:28,960 --> 00:09:30,840 Speaker 1: just tuning in, you're listening to the Mark mos Show. 154 00:09:30,880 --> 00:09:34,560 Speaker 1: We're talking about Sam Bankman freed f t X and 155 00:09:34,679 --> 00:09:38,199 Speaker 1: the blow up happening. I was talking about how, um, 156 00:09:38,240 --> 00:09:43,080 Speaker 1: this is probably the biggest case of fraud that we've seen, 157 00:09:43,520 --> 00:09:49,400 Speaker 1: you know, maybe potentially since I don't know Enron, or 158 00:09:49,440 --> 00:09:53,200 Speaker 1: since um, you know Bernie made off, potentially something like that. 159 00:09:53,679 --> 00:09:58,040 Speaker 1: As a matter of fact, Uh, speaking about in Ron. 160 00:09:59,280 --> 00:10:02,560 Speaker 1: Ron if you're not familiar, was a giant company that 161 00:10:02,880 --> 00:10:06,520 Speaker 1: did massive amounts of fraud and money laundering, embezzlement and 162 00:10:06,559 --> 00:10:09,760 Speaker 1: stuff like that. And Um, what we can see is 163 00:10:09,800 --> 00:10:14,040 Speaker 1: that when f t X filed for bankruptcy, they filed 164 00:10:14,040 --> 00:10:16,840 Speaker 1: for Chapter eleven and they had to file an affidavit, 165 00:10:17,320 --> 00:10:22,079 Speaker 1: and they appointed a restructuring CEO, John Ray the Third, 166 00:10:22,280 --> 00:10:27,319 Speaker 1: and he oversaw in Ron's bankruptcy proceedings and he, after 167 00:10:27,440 --> 00:10:30,800 Speaker 1: looking at the contents of their affid David calls f 168 00:10:30,960 --> 00:10:35,240 Speaker 1: t x is case the worst of his career and 169 00:10:35,280 --> 00:10:40,079 Speaker 1: the contents are shocking. So the guy who sat on 170 00:10:40,240 --> 00:10:45,760 Speaker 1: arguably the biggest fraud case in history is now saying 171 00:10:45,840 --> 00:10:48,160 Speaker 1: that this is actually the worst that he's just seen 172 00:10:48,160 --> 00:10:51,120 Speaker 1: in his whole career. So let's see what he has 173 00:10:51,160 --> 00:10:53,240 Speaker 1: to say here. Um, it says, Look, we owe a 174 00:10:53,280 --> 00:10:54,600 Speaker 1: lot of people a lot of money, and we don't 175 00:10:54,600 --> 00:10:58,520 Speaker 1: know exactly where it all is, but we're looking. We 176 00:10:58,559 --> 00:11:00,640 Speaker 1: don't know where the money went, we don't know who 177 00:11:00,679 --> 00:11:02,439 Speaker 1: we owe to, but don't worry, We're gonna look into 178 00:11:02,480 --> 00:11:06,680 Speaker 1: it all right. Um. He says that it's one of 179 00:11:06,679 --> 00:11:09,640 Speaker 1: the He is one of the most experienced restructuring executives 180 00:11:09,640 --> 00:11:11,800 Speaker 1: in the world, having an overseen n RON and a 181 00:11:11,840 --> 00:11:16,600 Speaker 1: slew of other high profile bankruptcies. Um Ray's statements are 182 00:11:16,640 --> 00:11:20,360 Speaker 1: given under penalty of perjury. All right, So that's to 183 00:11:20,400 --> 00:11:23,880 Speaker 1: say that a serious investigation. Ray opens with his experience 184 00:11:23,880 --> 00:11:26,400 Speaker 1: and then immediately condemns f t X as the worst 185 00:11:26,840 --> 00:11:29,880 Speaker 1: case of his career. Quote. Never in my career have 186 00:11:29,960 --> 00:11:33,319 Speaker 1: I seen such a complete failure of corporate controls and 187 00:11:33,400 --> 00:11:37,679 Speaker 1: such a complete absence of trustworthy financial information as occurred 188 00:11:38,040 --> 00:11:43,079 Speaker 1: here in quote. So it wasn't just like some mistake. 189 00:11:43,320 --> 00:11:48,160 Speaker 1: When you have a corporation and you have investors. There 190 00:11:48,200 --> 00:11:50,839 Speaker 1: are things that are required to be done by law, 191 00:11:51,600 --> 00:11:53,960 Speaker 1: and they did none of those. Never have seen such 192 00:11:53,960 --> 00:11:56,480 Speaker 1: a complete failure of corporate control. So there's controls that 193 00:11:56,520 --> 00:11:58,520 Speaker 1: are supposed to be in place to make sure that 194 00:11:58,559 --> 00:12:01,320 Speaker 1: you do the best things, and they have failed all 195 00:12:01,360 --> 00:12:04,160 Speaker 1: those things. He identified four businesses within f t X, 196 00:12:04,440 --> 00:12:07,480 Speaker 1: so we kind of know about these Alameda um different 197 00:12:07,480 --> 00:12:10,720 Speaker 1: f t X things, and that's not super important, but 198 00:12:10,800 --> 00:12:14,720 Speaker 1: he said, he immediately communicates distrust of any furnished financials. 199 00:12:15,440 --> 00:12:17,480 Speaker 1: F t X US balance sheet shows one point three 200 00:12:17,520 --> 00:12:21,240 Speaker 1: six billion in assets. However, he says, quote because this 201 00:12:21,280 --> 00:12:24,040 Speaker 1: balance sheet was produced while the debtors were controlled by 202 00:12:24,160 --> 00:12:27,559 Speaker 1: Mr Bankman Fried, I do not have confidence in in quote, 203 00:12:27,679 --> 00:12:29,560 Speaker 1: so basically saying, look, we don't trust anything that they 204 00:12:29,600 --> 00:12:32,960 Speaker 1: have to say. We can't believe any of this. Um. 205 00:12:33,000 --> 00:12:36,280 Speaker 1: He then goes on to recount SPS negotiations with attorneys 206 00:12:36,320 --> 00:12:39,920 Speaker 1: and his father around filing chapter eleven, which is in 207 00:12:40,000 --> 00:12:43,120 Speaker 1: his interview with Vox. SPF stated as his biggest regret, 208 00:12:43,200 --> 00:12:47,000 Speaker 1: claiming that everything would be fixed by now if he 209 00:12:47,040 --> 00:12:54,479 Speaker 1: hadn't so f SPF the head of f t X UM, 210 00:12:54,520 --> 00:12:55,920 Speaker 1: he just can't keep his mouth out and he can't 211 00:12:55,920 --> 00:13:01,120 Speaker 1: stay out of trouble. He started having um U a 212 00:13:01,640 --> 00:13:08,200 Speaker 1: d M conversation with a reporter from Vox, and in 213 00:13:08,240 --> 00:13:13,960 Speaker 1: this he, I mean just gave out so much damning information. 214 00:13:14,840 --> 00:13:19,040 Speaker 1: It's incredible. It's incredible that he would actually say this 215 00:13:19,160 --> 00:13:21,199 Speaker 1: and not just say it like verbally where someone could 216 00:13:21,240 --> 00:13:24,960 Speaker 1: misconstrue it. No, no, no, he actually put it in 217 00:13:25,120 --> 00:13:31,120 Speaker 1: text where people could read it. The reporter said, quote, 218 00:13:31,760 --> 00:13:35,040 Speaker 1: you were really good at talking about ethics for someone 219 00:13:35,080 --> 00:13:37,600 Speaker 1: who kind of saw it all as a game with 220 00:13:37,640 --> 00:13:41,400 Speaker 1: winners and losers, and Sam Bankman Fried says, yeah, he he, 221 00:13:42,000 --> 00:13:46,200 Speaker 1: I had to be he he. He's laughing about it. 222 00:13:46,760 --> 00:13:48,920 Speaker 1: So you were talking. You're good about talking about um 223 00:13:48,920 --> 00:13:52,600 Speaker 1: Paul ethics, right, because he was in Washington trying to 224 00:13:52,679 --> 00:13:56,040 Speaker 1: push regulations to supposedly regulate the fraud out of the 225 00:13:56,040 --> 00:13:58,760 Speaker 1: crypto industry while he was doing it. So the reporter said, hey, 226 00:13:58,760 --> 00:14:01,439 Speaker 1: you were good about talking about it, and he said yeah. 227 00:14:01,480 --> 00:14:04,480 Speaker 1: He he had to be. It's what reputations are made up. 228 00:14:04,520 --> 00:14:07,600 Speaker 1: To some extent, I feel I feel bad for those 229 00:14:07,640 --> 00:14:11,480 Speaker 1: who get ft by it, by this dumb game we 230 00:14:11,720 --> 00:14:16,080 Speaker 1: woke Westerners play, where we say all the right shibbo 231 00:14:16,160 --> 00:14:19,600 Speaker 1: with and so everyone likes us. So he says, right 232 00:14:19,600 --> 00:14:22,840 Speaker 1: here to the reporter, I had to I had to pretend. 233 00:14:23,280 --> 00:14:25,400 Speaker 1: I feel bad for those who get fed by it. 234 00:14:25,720 --> 00:14:29,640 Speaker 1: So you know, those hundreds of thousands of families who 235 00:14:29,840 --> 00:14:33,440 Speaker 1: literally lost their life savings, and people who don't have 236 00:14:33,520 --> 00:14:36,280 Speaker 1: medications now, and kids can't go to college now, and 237 00:14:36,320 --> 00:14:38,960 Speaker 1: they don't have homes anymore. I feel bad for those 238 00:14:38,960 --> 00:14:42,160 Speaker 1: people who get fed by my lies, my pretending to 239 00:14:42,200 --> 00:14:48,360 Speaker 1: be somebody, by this dumb game we woke Westerners play, 240 00:14:48,360 --> 00:14:52,440 Speaker 1: where we say all the right things so people like us. No, 241 00:14:53,440 --> 00:14:57,280 Speaker 1: we don't do that. That's called lies, that's called deceit 242 00:14:57,720 --> 00:15:00,840 Speaker 1: and that's called fraud. No, that's out what we do. 243 00:15:01,080 --> 00:15:03,680 Speaker 1: That's what he did. This is what he said in 244 00:15:03,880 --> 00:15:09,520 Speaker 1: text message. I mean, I just can't believe it. Um. 245 00:15:09,560 --> 00:15:12,360 Speaker 1: The whole world thought he was the smartest guy in 246 00:15:12,400 --> 00:15:15,400 Speaker 1: the world, the smartest Some of the smartest investors in 247 00:15:15,480 --> 00:15:18,920 Speaker 1: the world got totally scammed by this guy, which I 248 00:15:18,920 --> 00:15:21,720 Speaker 1: don't understand because he can't even keep his mouth shut. 249 00:15:21,920 --> 00:15:25,200 Speaker 1: This is what he said in text messages. He put 250 00:15:25,280 --> 00:15:28,400 Speaker 1: this into writing. Nobody with half a brain would put 251 00:15:28,400 --> 00:15:33,600 Speaker 1: that stuff into writing. Um. Elon Musk apparently he wanted 252 00:15:33,640 --> 00:15:36,520 Speaker 1: to donate, or not donate, but invest up the fifteen 253 00:15:36,560 --> 00:15:39,600 Speaker 1: billion dollars into Elon Must take over of Twitter. And 254 00:15:39,680 --> 00:15:41,840 Speaker 1: Elon Must said, just ever sitting down with him, just 255 00:15:41,920 --> 00:15:45,200 Speaker 1: for a couple of minutes, his BS alarms were going 256 00:15:45,240 --> 00:15:47,160 Speaker 1: off and he knew that he couldn't take on any 257 00:15:47,200 --> 00:15:53,400 Speaker 1: of his money. So, um, this was not Uh, this 258 00:15:53,440 --> 00:15:56,960 Speaker 1: was this was not something that nobody caught. People caught it. 259 00:15:57,000 --> 00:16:01,320 Speaker 1: Elon Musk caught it. They could see it. Now. People 260 00:16:01,440 --> 00:16:04,160 Speaker 1: didn't see it because they didn't want to see it. Um, 261 00:16:04,200 --> 00:16:06,520 Speaker 1: but let's see, let's see if we can find some 262 00:16:06,600 --> 00:16:10,280 Speaker 1: more of what he said here. There was a whole 263 00:16:10,400 --> 00:16:13,320 Speaker 1: thread on it. But I seem to have lost it anyway. 264 00:16:13,720 --> 00:16:17,720 Speaker 1: Um he he bamboozled. Will say, well, he bamboozled the industry. 265 00:16:17,760 --> 00:16:21,960 Speaker 1: We had Jim Kramer. Jim Kramer Um called him the 266 00:16:22,000 --> 00:16:29,360 Speaker 1: next Jp Morgan. We have Fortune magazine, saying that he 267 00:16:29,440 --> 00:16:33,000 Speaker 1: was going to be the next Warren Buffett, but instead 268 00:16:33,640 --> 00:16:38,520 Speaker 1: all he turned out to be was a big Bernie 269 00:16:38,520 --> 00:16:40,080 Speaker 1: made off. What else did he say here? He said, 270 00:16:42,680 --> 00:16:47,200 Speaker 1: he said, uh, uh, they said the reporter said, you 271 00:16:47,200 --> 00:16:48,680 Speaker 1: said a lot of stuff about how you wanted to 272 00:16:48,720 --> 00:16:51,280 Speaker 1: make regulations just good ones. Was that pretty much just 273 00:16:51,440 --> 00:16:56,040 Speaker 1: PR two? And he said, there's really no one out 274 00:16:56,040 --> 00:17:00,160 Speaker 1: there making such good things happen. Bad things don't. So 275 00:17:00,240 --> 00:17:04,960 Speaker 1: he said, uh, he said, yeah, just pr F regulators. 276 00:17:05,119 --> 00:17:08,600 Speaker 1: They make everything worse. They don't protect customers at all. 277 00:17:10,160 --> 00:17:12,920 Speaker 1: That's his quote. So you you talked a lot about 278 00:17:12,960 --> 00:17:17,320 Speaker 1: wanting to protect us with regulations, was that pr Yeah, 279 00:17:17,520 --> 00:17:21,359 Speaker 1: just pr F regulators. They make everything worse, they don't 280 00:17:21,359 --> 00:17:25,520 Speaker 1: protect customers at all. Hopefully that might be a warning 281 00:17:25,640 --> 00:17:29,879 Speaker 1: shot across the bow of the sec um because he 282 00:17:29,920 --> 00:17:33,760 Speaker 1: called them out F the regulators. They make everything worse, 283 00:17:33,760 --> 00:17:36,040 Speaker 1: they don't protect customers. At all. Well, they certainly didn't 284 00:17:36,040 --> 00:17:40,120 Speaker 1: protect customers at all from losing ten billion dollars. So 285 00:17:40,359 --> 00:17:42,479 Speaker 1: let's talk about what regulators are gonna do next and 286 00:17:42,520 --> 00:17:46,120 Speaker 1: what that means for the industry overall, and what I'm 287 00:17:46,160 --> 00:17:50,919 Speaker 1: calling the last cryptocurrency bowl market will ever see. So 288 00:17:50,920 --> 00:17:52,720 Speaker 1: what do I mean by that? But we'll talk about 289 00:17:52,760 --> 00:17:54,119 Speaker 1: that in a minute. If you're tuning and listen to 290 00:17:54,160 --> 00:17:57,399 Speaker 1: the Markma Show, we're talking about, of course, the decentralized Revolution, 291 00:17:57,400 --> 00:18:00,199 Speaker 1: but we're talking about the s SPF, n f F 292 00:18:00,280 --> 00:18:01,840 Speaker 1: t X below. I'll be right back with more. Don't 293 00:18:01,880 --> 00:18:04,119 Speaker 1: go away, Hello, and welcome back. If you are just 294 00:18:04,119 --> 00:18:06,200 Speaker 1: tuning in you're listening to the Mark Mo Show, we're 295 00:18:06,200 --> 00:18:12,040 Speaker 1: talking about the ft X cryptocurrency exchange blowing up, the 296 00:18:12,119 --> 00:18:15,080 Speaker 1: largest meltdown we've seen in the cryptocurrency space. Now I 297 00:18:15,119 --> 00:18:18,240 Speaker 1: want to talk about regulations. So just before we went 298 00:18:18,280 --> 00:18:24,080 Speaker 1: to break, I was reading quoting a direct message conversation 299 00:18:24,160 --> 00:18:28,920 Speaker 1: that SPF had with some reporter from Box and he said, 300 00:18:29,520 --> 00:18:35,280 Speaker 1: they said, they asked him, Uh, you said a lot 301 00:18:35,320 --> 00:18:37,879 Speaker 1: of stuff about how you wanted to make regulations. Was 302 00:18:37,960 --> 00:18:42,840 Speaker 1: that just pr two? He says, Yes, just pr F 303 00:18:43,080 --> 00:18:47,000 Speaker 1: regulators they make everything worse. They don't protect consumers or 304 00:18:47,040 --> 00:18:49,760 Speaker 1: I'm sorry, they don't protect customers at all. And so 305 00:18:50,200 --> 00:18:52,520 Speaker 1: the SEC is supposed to be there to protect customers. 306 00:18:52,680 --> 00:18:55,720 Speaker 1: He says, they don't do it, and they certainly didn't. 307 00:18:56,040 --> 00:18:59,280 Speaker 1: They were all up in his business. If they can't 308 00:18:59,280 --> 00:19:02,159 Speaker 1: catch this, they can't catch anything. If if if a 309 00:19:02,280 --> 00:19:05,440 Speaker 1: law abide incorporation forgets to cross a T on a document, 310 00:19:05,560 --> 00:19:07,359 Speaker 1: they're gonna be all up in their business with fines. 311 00:19:07,640 --> 00:19:10,160 Speaker 1: But him, he's just still in ten billion dollars. Never 312 00:19:10,280 --> 00:19:14,400 Speaker 1: mind that they certainly didn't protect customers. So what happens, 313 00:19:14,440 --> 00:19:17,879 Speaker 1: Well again I read I told you there's a betting 314 00:19:17,920 --> 00:19:21,480 Speaker 1: market to see whether he gets indicted or not. Sevent 315 00:19:21,600 --> 00:19:24,080 Speaker 1: say no, he will not be indicted by the end 316 00:19:24,080 --> 00:19:27,000 Speaker 1: of the year. He should already be in handcuffs. He 317 00:19:27,040 --> 00:19:30,520 Speaker 1: should have been handcuffed immediately as soon as we found 318 00:19:30,520 --> 00:19:32,440 Speaker 1: out he stole that money. It should have been game over. 319 00:19:32,880 --> 00:19:35,040 Speaker 1: What is he even doing walking around? What do we mean? 320 00:19:35,240 --> 00:19:37,520 Speaker 1: Will he be indicted? Are you kidd he meet? We 321 00:19:37,520 --> 00:19:40,080 Speaker 1: have all the facts we need, We have the information 322 00:19:40,200 --> 00:19:45,560 Speaker 1: right here, we have all the documentation everything. The fact 323 00:19:45,560 --> 00:19:48,159 Speaker 1: that he's walking around a freeman is just unbelievable to me. 324 00:19:49,840 --> 00:19:52,359 Speaker 1: And will he ever be indicted? Well, we don't know 325 00:19:52,400 --> 00:19:56,800 Speaker 1: the betting. Marcus saying no, why Well, Gary Ginsler ahead 326 00:19:56,800 --> 00:19:59,879 Speaker 1: of the sec says, well, it's a Bahamas it's a 327 00:20:00,080 --> 00:20:02,399 Speaker 1: Hamas corporation. So I don't know if we have jurisdiction. 328 00:20:03,800 --> 00:20:07,040 Speaker 1: You don't have jurisdiction. Well, he did have an offshore corporation, 329 00:20:07,080 --> 00:20:10,359 Speaker 1: but he also had f t x US. He's also 330 00:20:10,600 --> 00:20:13,840 Speaker 1: a U. S citizen. He also has defrauded all these 331 00:20:13,840 --> 00:20:17,040 Speaker 1: American citizens of money. What do you mean we don't 332 00:20:17,080 --> 00:20:22,040 Speaker 1: have jurisdiction. I mean that's just insanity for Gary Gains 333 00:20:22,080 --> 00:20:25,879 Speaker 1: that is saying something like that, we need heads to roll, 334 00:20:25,960 --> 00:20:29,160 Speaker 1: that's what we need. We need, we need examples. Now 335 00:20:29,200 --> 00:20:33,720 Speaker 1: I'm afraid that this is just unfortunately, as I'm calling 336 00:20:33,760 --> 00:20:37,280 Speaker 1: the decentralized revolution, the entire world is going through a 337 00:20:37,320 --> 00:20:40,480 Speaker 1: revolution and it's going to be very messy. But we're 338 00:20:40,480 --> 00:20:43,520 Speaker 1: seeing this all over. Nobody wants to take accountability, Nobody 339 00:20:43,520 --> 00:20:45,440 Speaker 1: wants to take responsibility. All we want to do is 340 00:20:45,440 --> 00:20:48,520 Speaker 1: continually shuck off that. And so it's not the federal 341 00:20:48,560 --> 00:20:51,000 Speaker 1: reserves fault. They didn't understand inflation and they printed way 342 00:20:51,000 --> 00:20:52,520 Speaker 1: too much money, and now we have inflation. It's not 343 00:20:52,600 --> 00:20:56,479 Speaker 1: their faults, nobody's fault. Nobody's fault. You know, all these 344 00:20:56,520 --> 00:20:59,760 Speaker 1: people that perpetrated this whole COVID pandemic and the lockdowns 345 00:20:59,760 --> 00:21:02,080 Speaker 1: and all the damage and unharmedus cause from that. And 346 00:21:02,119 --> 00:21:04,320 Speaker 1: now they're saying the Atlantic ran that piece and said 347 00:21:04,800 --> 00:21:07,000 Speaker 1: we just need amnesty. You know, we didn't know what 348 00:21:07,000 --> 00:21:09,720 Speaker 1: we were doing. Can we just forgive all that? No? No, no, 349 00:21:09,720 --> 00:21:13,919 Speaker 1: no no. We need accountability, We need responsibility, and we 350 00:21:13,960 --> 00:21:18,880 Speaker 1: need examples made. People must pay the price, not just 351 00:21:19,040 --> 00:21:22,040 Speaker 1: because they've done wrong, which they have, but also so 352 00:21:22,160 --> 00:21:25,000 Speaker 1: other people don't do the same thing. You don't just 353 00:21:25,080 --> 00:21:28,760 Speaker 1: wipe out ten billion dollars of people's wealth like it's 354 00:21:28,760 --> 00:21:31,879 Speaker 1: just a number on a spreadsheet, without understanding the lives 355 00:21:31,880 --> 00:21:33,560 Speaker 1: that are at risk. You don't just walk away from 356 00:21:33,600 --> 00:21:36,600 Speaker 1: that and pretend like nothing happened, because what prevents the 357 00:21:36,640 --> 00:21:39,000 Speaker 1: next guy from doing that? I mean, shoot, if you 358 00:21:39,000 --> 00:21:42,320 Speaker 1: can just go still ten billion dollars and have no um, 359 00:21:42,359 --> 00:21:45,760 Speaker 1: no responsibility or consequences for that, I mean maybe we 360 00:21:45,760 --> 00:21:48,919 Speaker 1: should all just do that now. As a matter of fact, 361 00:21:49,359 --> 00:21:56,080 Speaker 1: I've read before UM Vladimir Linen um in Russia. Bizarre 362 00:21:56,080 --> 00:21:59,040 Speaker 1: of Russia a hundred years ago said that the best 363 00:21:59,119 --> 00:22:02,800 Speaker 1: way to destroy capitalism is to debouch the currency. So 364 00:22:02,880 --> 00:22:06,960 Speaker 1: de Devalue debase the currency through inflation. And he said, 365 00:22:07,320 --> 00:22:11,280 Speaker 1: I'm paraphrasing here, I'm not reading directly, but he said, Um, 366 00:22:11,320 --> 00:22:16,800 Speaker 1: through inflation you can steal and confiscate wealth arbitrarily. So 367 00:22:17,000 --> 00:22:19,520 Speaker 1: just as as you want, you can just take people's money. 368 00:22:19,600 --> 00:22:21,560 Speaker 1: And then you wanted to say that through a series 369 00:22:21,560 --> 00:22:25,840 Speaker 1: of inflation, you'll lose all relation to money and society 370 00:22:25,840 --> 00:22:27,800 Speaker 1: will break down. The best way to get rich will 371 00:22:27,800 --> 00:22:34,280 Speaker 1: be through theft and gambling. Sam Bankman Fried Jim Kramer 372 00:22:34,320 --> 00:22:36,960 Speaker 1: said the next Jp Morgan. Fortune Magazine said he's the 373 00:22:37,000 --> 00:22:39,360 Speaker 1: next war and Buffett. He had built a thirty two 374 00:22:39,400 --> 00:22:43,359 Speaker 1: billion dollar company in three years. Um. All the political elite, 375 00:22:43,480 --> 00:22:46,280 Speaker 1: the world Ecomic Forum, Bill Clinton, Tony Blair, the Bide 376 00:22:46,280 --> 00:22:49,040 Speaker 1: administration all praised him. He's the smartest guy in the world. 377 00:22:49,600 --> 00:22:52,800 Speaker 1: All theft. So remember what Vladimir Lenin said, The best 378 00:22:52,840 --> 00:22:55,080 Speaker 1: way to get wealth will be through gambling and theft. 379 00:22:56,000 --> 00:22:58,680 Speaker 1: He stole all the money, he counterfeited it, and then 380 00:22:58,920 --> 00:23:01,440 Speaker 1: he made more money by given it to gamblers. Remember 381 00:23:01,480 --> 00:23:05,560 Speaker 1: gambling and theft. He theft and he made money off gambling. 382 00:23:07,720 --> 00:23:09,720 Speaker 1: And if we don't said an example, then we're just 383 00:23:09,720 --> 00:23:12,280 Speaker 1: gonna get more of the same. Now, I wouldn't do it, 384 00:23:12,320 --> 00:23:15,199 Speaker 1: because you know, I have morals. Luckily, I have a 385 00:23:15,280 --> 00:23:16,920 Speaker 1: I have a father, I have a family that raised 386 00:23:16,920 --> 00:23:21,080 Speaker 1: me up with morals and integrity and a conscience. Unfortunately 387 00:23:21,119 --> 00:23:23,640 Speaker 1: most people don't these days. And so if you don't 388 00:23:23,640 --> 00:23:26,440 Speaker 1: make an example out of this, if there's no consequences 389 00:23:26,440 --> 00:23:28,320 Speaker 1: to pay, if there's no responsibility, then what will stop 390 00:23:28,320 --> 00:23:29,920 Speaker 1: people from doing the same thing? And of course the 391 00:23:29,960 --> 00:23:36,080 Speaker 1: answer is nothing will. My guess is though, that I 392 00:23:36,119 --> 00:23:39,919 Speaker 1: think we're going to see some massive regulations come from this. 393 00:23:40,040 --> 00:23:43,280 Speaker 1: I think we're gonna have to see Chair SEC Chair 394 00:23:43,359 --> 00:23:47,719 Speaker 1: Gainsler said this week quote non compliant end quote crypto 395 00:23:47,760 --> 00:23:53,080 Speaker 1: industry um needs to be cracked down on. He says, uh, 396 00:23:53,240 --> 00:23:55,240 Speaker 1: crypto investors need better protection in the space that is 397 00:23:55,280 --> 00:24:00,399 Speaker 1: significantly non compliant despite clear regulations. US Security An Exchange 398 00:24:00,400 --> 00:24:04,040 Speaker 1: Commissioner Gary Ginsler said in an interview to CNBC on Thursday, 399 00:24:04,240 --> 00:24:07,040 Speaker 1: he said, quote the runway is running out. Investors around 400 00:24:07,040 --> 00:24:09,840 Speaker 1: the globe are getting hurt in quote yeah, no, kidding. 401 00:24:10,640 --> 00:24:17,480 Speaker 1: Ten billion dollars gone. Um, so I think I think, 402 00:24:17,520 --> 00:24:19,480 Speaker 1: I think I think they're gonna be forced in order 403 00:24:19,520 --> 00:24:21,960 Speaker 1: to do this. Now, what is the security and what 404 00:24:22,119 --> 00:24:23,800 Speaker 1: is a what is a commodity? And what does this 405 00:24:23,880 --> 00:24:26,680 Speaker 1: mean for the cryptocurrency space overall? Like I said, I 406 00:24:26,720 --> 00:24:29,000 Speaker 1: put out a tweet on Twitter. A lot of people 407 00:24:29,040 --> 00:24:33,840 Speaker 1: are not liking my tweet on Twitter because I said, 408 00:24:37,080 --> 00:24:39,440 Speaker 1: this is why I believe we've seen the last crypto 409 00:24:39,720 --> 00:24:42,760 Speaker 1: bull market. So a lot of people they got in 410 00:24:42,800 --> 00:24:44,720 Speaker 1: at the end, they lost their money. But wait a minute, 411 00:24:44,760 --> 00:24:46,359 Speaker 1: I didn't. I didn't get into the bull market. I 412 00:24:46,400 --> 00:24:49,000 Speaker 1: need one more? Can I get one more? Please? One more? 413 00:24:49,960 --> 00:24:51,560 Speaker 1: And I said there's not going to be another one. 414 00:24:51,600 --> 00:24:53,560 Speaker 1: People aren't happy about that. So what do I mean 415 00:24:53,640 --> 00:24:57,399 Speaker 1: by that? Well, if you're around on our one and 416 00:24:57,480 --> 00:25:00,280 Speaker 1: you heard how I explained how all of this worked. 417 00:25:00,640 --> 00:25:02,719 Speaker 1: If you weren't here, go back and listen to that, 418 00:25:02,960 --> 00:25:05,199 Speaker 1: because if you don't understand that, you're not gonna understand 419 00:25:05,240 --> 00:25:08,760 Speaker 1: what I'm about to say. So remember, they create these 420 00:25:08,760 --> 00:25:13,639 Speaker 1: tokens out of thin air, and then venture capitalists come 421 00:25:13,640 --> 00:25:15,040 Speaker 1: in and give them a little bit of money to 422 00:25:15,080 --> 00:25:17,000 Speaker 1: create this token out of thin air. And then the 423 00:25:17,040 --> 00:25:18,960 Speaker 1: venture capitalists are able to turn around and liquidate that 424 00:25:18,960 --> 00:25:21,240 Speaker 1: money right away. Now, venture capitalists is somebody who would 425 00:25:21,400 --> 00:25:26,440 Speaker 1: invests into early round companies, startups. Okay, now the way 426 00:25:26,560 --> 00:25:29,840 Speaker 1: venture capitalists vcs way, the way the VC funds works. Typically, 427 00:25:30,000 --> 00:25:31,880 Speaker 1: they put in a pool of money and then they'll 428 00:25:31,920 --> 00:25:34,240 Speaker 1: invest that over like say fifteen companies, and then they'll 429 00:25:34,240 --> 00:25:36,320 Speaker 1: give it like a seven to ten ten year time frames. 430 00:25:36,400 --> 00:25:38,800 Speaker 1: They know when I invest into Uber, for example, it's 431 00:25:38,800 --> 00:25:41,800 Speaker 1: gonna take ten years before there's some sort of liquidity event. 432 00:25:42,000 --> 00:25:44,160 Speaker 1: So if I put my money into Uber or something 433 00:25:44,200 --> 00:25:47,160 Speaker 1: like Uber, how do I get my money back out? 434 00:25:47,240 --> 00:25:49,200 Speaker 1: Whether it has to be an a liquidity event, meaning 435 00:25:49,240 --> 00:25:52,320 Speaker 1: that Uber either has to get bought out typically or 436 00:25:52,400 --> 00:25:55,240 Speaker 1: go public. If it goes public, then I get stock 437 00:25:55,320 --> 00:25:57,480 Speaker 1: and I can sell my stock. But if there's no 438 00:25:57,560 --> 00:25:59,639 Speaker 1: liquidity event, if it doesn't go public or doesn't get 439 00:25:59,640 --> 00:26:00,959 Speaker 1: bought out out or some other way I can get 440 00:26:01,000 --> 00:26:04,200 Speaker 1: my money out, I don't get my money out. And 441 00:26:04,320 --> 00:26:06,960 Speaker 1: venture capitalists know that a lot of deals they do, 442 00:26:07,119 --> 00:26:09,119 Speaker 1: they won't ever get their money back out. But of 443 00:26:09,119 --> 00:26:11,600 Speaker 1: course the few that do, they make big, big money. 444 00:26:11,840 --> 00:26:14,879 Speaker 1: That's the way venture capital works. But now venture Capital 445 00:26:14,920 --> 00:26:16,880 Speaker 1: has been able to buy these tokens out of thin 446 00:26:17,000 --> 00:26:21,240 Speaker 1: air and then automatically made ten times on their money 447 00:26:21,240 --> 00:26:24,479 Speaker 1: by dumping in on unsuspecting retail And of course they 448 00:26:24,520 --> 00:26:26,160 Speaker 1: love it, which then means the media loves it, which 449 00:26:26,200 --> 00:26:28,160 Speaker 1: then means the advertisers love it, and then you get 450 00:26:28,200 --> 00:26:33,320 Speaker 1: all this hype around that. Now, if the if the 451 00:26:33,359 --> 00:26:37,080 Speaker 1: regulators come in and put laws around this, I think 452 00:26:37,119 --> 00:26:39,000 Speaker 1: it could be the end of the bull market. And 453 00:26:39,040 --> 00:26:40,680 Speaker 1: a lot of people on Twitter are like, oh, Mark, 454 00:26:40,720 --> 00:26:43,040 Speaker 1: you don't know what you're talking about. Um, it'll just 455 00:26:43,080 --> 00:26:47,440 Speaker 1: go off shore. Okay, sure, I agree. They can't stop 456 00:26:47,480 --> 00:26:52,159 Speaker 1: something decentralized. Okay, I agree. So if I agree with 457 00:26:52,200 --> 00:26:55,600 Speaker 1: those statements, then why would I say that there won't 458 00:26:55,640 --> 00:26:58,560 Speaker 1: be another crypto bull run? And by the way, i'm 459 00:26:58,600 --> 00:27:01,720 Speaker 1: breaking apart of course bitcoin not crypto. I'm not talking 460 00:27:01,720 --> 00:27:05,360 Speaker 1: about them too interchangeably. I think we'll see bitcoin going 461 00:27:05,400 --> 00:27:08,000 Speaker 1: another bull run, and I think we might not see 462 00:27:08,040 --> 00:27:09,960 Speaker 1: crypto going another bull run. So what do I mean 463 00:27:10,000 --> 00:27:11,480 Speaker 1: by that when I agree with all that, I'm gonna 464 00:27:11,480 --> 00:27:12,760 Speaker 1: break all that down for you want to come back 465 00:27:12,760 --> 00:27:14,520 Speaker 1: in a second. If you're just tuning in, you're listening 466 00:27:14,560 --> 00:27:17,320 Speaker 1: to the Mark mass Show, breaking down the f t 467 00:27:17,520 --> 00:27:19,560 Speaker 1: X scenario, what's gonna happen with regulations, and what happens 468 00:27:19,560 --> 00:27:21,760 Speaker 1: with the crypto industry. We're back with all of that 469 00:27:21,840 --> 00:27:23,920 Speaker 1: and more when I come back after just a quick 470 00:27:23,920 --> 00:27:27,440 Speaker 1: short break. Don't go away, We're back, all right, Welcome back. 471 00:27:27,480 --> 00:27:29,080 Speaker 1: If you're just tuning in, you're listening to the Mark 472 00:27:29,160 --> 00:27:32,479 Speaker 1: Moa Show. We are talking about the ft X blow up. 473 00:27:32,520 --> 00:27:35,360 Speaker 1: F t X, the second largest cryptocurrency exchange, blew up, 474 00:27:36,000 --> 00:27:38,680 Speaker 1: taking over ten billion dollars of customer money with it 475 00:27:39,160 --> 00:27:42,480 Speaker 1: um leaving probably I'm guessing hundreds of thousands of families 476 00:27:42,800 --> 00:27:47,879 Speaker 1: broke massive amounts of fraud, the greatest negligence of fraud 477 00:27:48,080 --> 00:27:51,920 Speaker 1: um that we might have ever seen. The the person 478 00:27:51,960 --> 00:27:55,080 Speaker 1: overseeing the f t X bankruptcy filing also worked on 479 00:27:55,119 --> 00:27:57,480 Speaker 1: the n Ron case and he said it's the worst 480 00:27:57,560 --> 00:28:01,320 Speaker 1: he's seen in his career, and that's a lot. So 481 00:28:01,880 --> 00:28:04,560 Speaker 1: I'm saying that I think this is going to force 482 00:28:04,680 --> 00:28:09,399 Speaker 1: regulators to to impose more regulations, be more strict, And 483 00:28:09,560 --> 00:28:12,400 Speaker 1: I'm saying if that happens, which I think it will, 484 00:28:12,760 --> 00:28:15,600 Speaker 1: then I think this could be the last crypto bull run. Now, 485 00:28:15,640 --> 00:28:17,119 Speaker 1: like I said before the break people I put this 486 00:28:17,160 --> 00:28:18,919 Speaker 1: on Twitter. People are all mad, They say, what do 487 00:28:18,920 --> 00:28:22,119 Speaker 1: you mean, Mark? They can't shut crypto down. It's decentralized. 488 00:28:22,400 --> 00:28:25,199 Speaker 1: They and it'll just go off shore and the U S. 489 00:28:25,240 --> 00:28:28,240 Speaker 1: Regulators won't be able to reach it. I agree with that, 490 00:28:29,160 --> 00:28:31,520 Speaker 1: But here's why I think it could be the last 491 00:28:31,520 --> 00:28:35,560 Speaker 1: bull run. The reason why is because this got all 492 00:28:35,600 --> 00:28:38,400 Speaker 1: of its momentum, It got all of its hype, it 493 00:28:38,520 --> 00:28:41,720 Speaker 1: got all of its money because venture capitalists were able 494 00:28:41,760 --> 00:28:43,840 Speaker 1: to come in and buy these tokens for nothing and 495 00:28:43,840 --> 00:28:45,800 Speaker 1: then instantly flipped them and make all this money and 496 00:28:45,800 --> 00:28:48,600 Speaker 1: then spend all this money for for media and for hype, 497 00:28:48,880 --> 00:28:52,200 Speaker 1: and everybody got all caught up in this. If all 498 00:28:52,240 --> 00:28:56,160 Speaker 1: of this goes off shore into these dark, unregulated markets, 499 00:28:56,440 --> 00:29:01,080 Speaker 1: that means like American firms, like these venture are capital firms, 500 00:29:01,360 --> 00:29:04,280 Speaker 1: the ones that have the hundreds of billions of dollars 501 00:29:04,360 --> 00:29:09,720 Speaker 1: and the media won't participate. So will it go off shore? Sure? 502 00:29:10,000 --> 00:29:12,680 Speaker 1: Will innovation still happen, of course it will. It will 503 00:29:12,720 --> 00:29:14,560 Speaker 1: just be a fraction of the size. And I'm not 504 00:29:14,560 --> 00:29:17,600 Speaker 1: saying I want this. Remember this is what I think 505 00:29:17,680 --> 00:29:19,480 Speaker 1: is going to happen. It's not what I want to happen. 506 00:29:19,840 --> 00:29:21,840 Speaker 1: I would like the sec to be disbanded. I would 507 00:29:21,840 --> 00:29:23,960 Speaker 1: like to see none of this happen, But this is 508 00:29:24,000 --> 00:29:26,280 Speaker 1: what it is. So I think they're most likely going 509 00:29:26,320 --> 00:29:29,200 Speaker 1: to be forced to do something. I think that, um, 510 00:29:29,440 --> 00:29:33,240 Speaker 1: most likely, they're going to deem almost all of these cryptocurrencies, 511 00:29:33,240 --> 00:29:38,080 Speaker 1: in my guess, like of them as securities, and most 512 00:29:38,160 --> 00:29:40,360 Speaker 1: of them will just go away. Some of them will survive, 513 00:29:40,800 --> 00:29:44,680 Speaker 1: some of them will go off shore. But this VC money, 514 00:29:44,760 --> 00:29:48,800 Speaker 1: American VC money and media will not go with it. 515 00:29:49,080 --> 00:29:51,640 Speaker 1: And so then the hype dies. And with the hype dies, 516 00:29:52,040 --> 00:29:54,560 Speaker 1: so does the next Bowl run. I'm not saying it 517 00:29:54,600 --> 00:29:56,320 Speaker 1: goes away. I'm not saying whatever seed it again, there 518 00:29:56,320 --> 00:29:58,320 Speaker 1: will still be stuff being innovated. There was stuff, stuff 519 00:29:58,320 --> 00:30:01,440 Speaker 1: being done. But this big run where all of a 520 00:30:01,480 --> 00:30:04,000 Speaker 1: sudden you can close your eyes and buy some stupid 521 00:30:04,080 --> 00:30:07,680 Speaker 1: dog coin, um, you know, cryptocurrency and make a thousand 522 00:30:07,720 --> 00:30:11,040 Speaker 1: times on it, I think those days are over. Now. 523 00:30:11,080 --> 00:30:14,000 Speaker 1: What is the difference between bitcoin and crypto? Why would 524 00:30:14,000 --> 00:30:16,320 Speaker 1: I say I think bitcoin could have another Bowl run 525 00:30:16,400 --> 00:30:20,360 Speaker 1: and crypto won't. So let's think think about this. There's 526 00:30:20,400 --> 00:30:23,000 Speaker 1: two types of kind of financial assets that we can 527 00:30:23,040 --> 00:30:26,280 Speaker 1: buy one is one are commodities, and one are securities. 528 00:30:26,320 --> 00:30:29,760 Speaker 1: Commodities and security Securities are regulated by the sec Commodities 529 00:30:29,760 --> 00:30:34,920 Speaker 1: are regulated by the CFTC. Commodities are things like gold, 530 00:30:35,120 --> 00:30:38,000 Speaker 1: like precious metals, gold and silver, platinum, palladium, et cetera. 531 00:30:38,640 --> 00:30:42,960 Speaker 1: There are things like oil gas right. There are things 532 00:30:43,000 --> 00:30:48,000 Speaker 1: like food like wheat, corn. Right Now, what do wheat 533 00:30:48,080 --> 00:30:53,360 Speaker 1: and corn and oil and natural gas and precious metals 534 00:30:53,400 --> 00:30:57,840 Speaker 1: all have in common. Well, they all come from the ground. 535 00:30:58,320 --> 00:31:03,040 Speaker 1: They're all like naturally hurrying things. There's no central issuer. 536 00:31:03,200 --> 00:31:07,800 Speaker 1: There's no company that invented corn and sells people investments 537 00:31:07,800 --> 00:31:10,480 Speaker 1: into creating corn. No, you can go buy a piece 538 00:31:10,520 --> 00:31:12,560 Speaker 1: of land and you can plant corn, or you can 539 00:31:12,600 --> 00:31:14,960 Speaker 1: plant wheat, or you can you can mine for gold 540 00:31:15,000 --> 00:31:16,720 Speaker 1: on your land, or you can droll for oil on 541 00:31:16,760 --> 00:31:19,840 Speaker 1: your land. Anybody in the world could go get land 542 00:31:19,920 --> 00:31:23,000 Speaker 1: and can go grow wheat or corn or dig for 543 00:31:23,240 --> 00:31:25,800 Speaker 1: gold or oil. Okay. And then no matter where in 544 00:31:25,840 --> 00:31:28,600 Speaker 1: the world I grow wheat, wheat sweet, it's fungible. No 545 00:31:28,640 --> 00:31:30,320 Speaker 1: matter where I dig for gold, if I dig for 546 00:31:30,320 --> 00:31:33,160 Speaker 1: gold in China or the US, it's still gold. Okay. 547 00:31:33,280 --> 00:31:39,120 Speaker 1: So that's commodities. Securities are different. Securities are companies. Security 548 00:31:39,160 --> 00:31:44,040 Speaker 1: is secured interests in companies. So a company starts, we're 549 00:31:44,040 --> 00:31:47,080 Speaker 1: going to create this software, and um, we're going to 550 00:31:47,200 --> 00:31:51,520 Speaker 1: raise money and you can buy a share, a stock, 551 00:31:51,840 --> 00:31:55,520 Speaker 1: a security in this company because in the future we're 552 00:31:55,520 --> 00:31:57,520 Speaker 1: going to do these things or whatever. It's a big 553 00:31:57,560 --> 00:32:03,320 Speaker 1: difference a company versus a modity. So bitcoin is a commodity. 554 00:32:03,640 --> 00:32:05,760 Speaker 1: The SEC has been very clear about this. They said 555 00:32:05,800 --> 00:32:09,360 Speaker 1: unequivocally bitcoin is a commodity. And the reason why is 556 00:32:09,360 --> 00:32:13,840 Speaker 1: bitcoin has no company. There's no company, there's no marketing department, 557 00:32:14,120 --> 00:32:17,080 Speaker 1: there's no regulators, there's no nothing, there's no steering committee, 558 00:32:17,680 --> 00:32:23,440 Speaker 1: and it's one of the only very very few cryptocurrencies 559 00:32:23,440 --> 00:32:27,560 Speaker 1: that had no issuer. So bitcoin was a piece of 560 00:32:27,640 --> 00:32:31,080 Speaker 1: software that was created and released to the world. Anybody, 561 00:32:31,240 --> 00:32:33,840 Speaker 1: even right now today can go to go get a 562 00:32:33,840 --> 00:32:37,000 Speaker 1: computer and you can mine for bitcoin, just like you 563 00:32:37,040 --> 00:32:40,000 Speaker 1: can go mine for gold today. Now, I don't have 564 00:32:40,040 --> 00:32:43,360 Speaker 1: the same advantage mining for gold as like Barrack Gold, 565 00:32:43,400 --> 00:32:45,320 Speaker 1: the largest gold mining company in the world. I don't 566 00:32:45,320 --> 00:32:46,880 Speaker 1: have the same advantage. They have way more money, they 567 00:32:46,920 --> 00:32:48,320 Speaker 1: can mind more gold than I can. But I can 568 00:32:48,320 --> 00:32:50,160 Speaker 1: still go look for gold if I want. As a 569 00:32:50,160 --> 00:32:51,760 Speaker 1: matter of fact, I'm in California. One of my good 570 00:32:51,760 --> 00:32:53,920 Speaker 1: friends love to go mine for gold and the rivers 571 00:32:53,920 --> 00:32:55,800 Speaker 1: and stuff in northern California and he finds gold all 572 00:32:55,800 --> 00:32:58,240 Speaker 1: the time. Um, just like I can go buy a 573 00:32:58,240 --> 00:33:00,360 Speaker 1: computer and I can mind for bitcoin today. Now I 574 00:33:00,400 --> 00:33:02,080 Speaker 1: don't have the same advantage that you know a big 575 00:33:02,080 --> 00:33:06,479 Speaker 1: publicly traded bitcoin mining company has, But but we can 576 00:33:06,520 --> 00:33:08,120 Speaker 1: still do it the same. And whether I mind the 577 00:33:08,120 --> 00:33:10,120 Speaker 1: bitcoin or they mind the bigoin to same bitcoin, whether 578 00:33:10,360 --> 00:33:12,280 Speaker 1: I go find gold in the river or Barrett Gold 579 00:33:12,280 --> 00:33:15,880 Speaker 1: finds the gold, the same goal. Okay. But Ethereum, the 580 00:33:15,920 --> 00:33:21,080 Speaker 1: second largest cryptocurrency, was started by a company. Seventy percent 581 00:33:21,200 --> 00:33:24,640 Speaker 1: of the tokens were pre mind, meaning when they created 582 00:33:24,640 --> 00:33:27,080 Speaker 1: the company, they created the tokens and they kept seventy 583 00:33:27,440 --> 00:33:29,560 Speaker 1: for themselves and the rest they released on to the public. 584 00:33:30,400 --> 00:33:34,520 Speaker 1: And like a company, there's a steering group they're controlling 585 00:33:34,600 --> 00:33:36,920 Speaker 1: what it does. So if you haven't been paying attention, 586 00:33:37,120 --> 00:33:39,960 Speaker 1: Ethereum has changed their monetary policy I believe three times 587 00:33:39,960 --> 00:33:41,920 Speaker 1: in the last couple of years. They recently just changed 588 00:33:41,920 --> 00:33:44,560 Speaker 1: the entire consensus mechanism to go from a proof of 589 00:33:44,560 --> 00:33:47,000 Speaker 1: work to a proof of steak and they have a 590 00:33:47,040 --> 00:33:50,080 Speaker 1: ten year road map of what they're trying to do. 591 00:33:51,480 --> 00:33:58,479 Speaker 1: That's essentially controlled. Pre mind all right, now take cardano, 592 00:33:58,720 --> 00:34:02,680 Speaker 1: take whatever X y Z token. I don't care. They're 593 00:34:02,720 --> 00:34:05,800 Speaker 1: all basically the same. There's a group of people that 594 00:34:05,880 --> 00:34:09,440 Speaker 1: control it. Now. Oh but it's decentralized governance. Okay, call 595 00:34:09,440 --> 00:34:11,800 Speaker 1: it what you will. That's up for the SEC to decide. 596 00:34:12,360 --> 00:34:15,320 Speaker 1: But they issued the tokens. So only bitcoin is a 597 00:34:15,360 --> 00:34:22,439 Speaker 1: commodity now, um, I believe, uh mon, narrow and light 598 00:34:22,520 --> 00:34:27,000 Speaker 1: coin and siah coin I think. So maybe there's like 599 00:34:27,040 --> 00:34:30,680 Speaker 1: three other ones that didn't actually have a issue or 600 00:34:30,719 --> 00:34:34,760 Speaker 1: as well, all the other ones had issuers, okay, um, 601 00:34:34,840 --> 00:34:37,719 Speaker 1: And so that's a big difference. And so SEC has 602 00:34:37,719 --> 00:34:39,640 Speaker 1: already said one in a commodity. All the rest are 603 00:34:39,640 --> 00:34:43,680 Speaker 1: still open for interpretation. If they say they are securities, 604 00:34:44,920 --> 00:34:46,880 Speaker 1: then they have to be regulated securities. Now that this 605 00:34:46,840 --> 00:34:49,520 Speaker 1: doesn't mean they go away. Now we have securities all day, 606 00:34:49,600 --> 00:34:51,960 Speaker 1: all these companies and securities. There's just a high bar there. 607 00:34:52,200 --> 00:34:55,560 Speaker 1: You can't create tokens from thin air. You can't do that. 608 00:34:55,680 --> 00:34:57,359 Speaker 1: Now you can go raise money, Don't get me wrong. 609 00:34:57,560 --> 00:34:59,319 Speaker 1: That's basically what companies do. Right, So if I want 610 00:34:59,320 --> 00:35:00,640 Speaker 1: to if I want to start Uber, I go raise 611 00:35:00,680 --> 00:35:03,080 Speaker 1: a hundred million dollars and I give you shares back, 612 00:35:03,400 --> 00:35:05,480 Speaker 1: and those shares are each worth a percentage of that 613 00:35:05,560 --> 00:35:08,160 Speaker 1: hundred million dollars, So just so you kind of are. 614 00:35:08,600 --> 00:35:10,320 Speaker 1: But there's just a lot of regulations around that. And 615 00:35:10,360 --> 00:35:13,280 Speaker 1: so I think that's going to change the industry because 616 00:35:13,760 --> 00:35:17,719 Speaker 1: if real investors with real money had to give that 617 00:35:17,840 --> 00:35:21,319 Speaker 1: real money to a real company and maybe wouldn't get 618 00:35:21,360 --> 00:35:23,239 Speaker 1: that money back for seven to ten years unless that 619 00:35:23,280 --> 00:35:27,399 Speaker 1: company actually succeeded and made a profit, you wouldn't have 620 00:35:27,680 --> 00:35:31,680 Speaker 1: all the wild and rampant speculation that we see right now. Now. 621 00:35:31,800 --> 00:35:35,920 Speaker 1: I think this is bullish for bitcoin because bick, all 622 00:35:35,960 --> 00:35:38,479 Speaker 1: these cryptocurrencies, about twenty of them are what we would 623 00:35:38,480 --> 00:35:41,440 Speaker 1: call a denial of service attack against bitcoin. So in 624 00:35:41,480 --> 00:35:43,880 Speaker 1: the computer space, we have these d d o S 625 00:35:43,920 --> 00:35:47,080 Speaker 1: attacks where like um, the spam will span a server 626 00:35:47,560 --> 00:35:49,239 Speaker 1: and it will it will flood it and try to 627 00:35:49,280 --> 00:35:51,960 Speaker 1: block it out, and all these cryptocurrencies are like a 628 00:35:52,000 --> 00:35:54,600 Speaker 1: denial of service attack against bitcoin. So instead of money 629 00:35:54,600 --> 00:35:57,480 Speaker 1: going into bitcoin, which is a commodity of the digital asset, 630 00:35:57,520 --> 00:35:59,680 Speaker 1: that's a commodity. Instead of money going in there supplying 631 00:35:59,719 --> 00:36:02,680 Speaker 1: demand end, they go into these other twenty thousand cryptocurrencies. 632 00:36:02,680 --> 00:36:05,040 Speaker 1: And there was two thousand, there was five thousand, there 633 00:36:05,080 --> 00:36:07,239 Speaker 1: was ten thousand, there's twenty thousand. Who knows there'll be fifty. 634 00:36:08,160 --> 00:36:10,440 Speaker 1: But if they all go away, most of them go away, 635 00:36:10,680 --> 00:36:12,160 Speaker 1: except for the high bar of the ones that can 636 00:36:12,160 --> 00:36:14,719 Speaker 1: pass the Security Act, the majority of them go away. Well, 637 00:36:14,719 --> 00:36:17,600 Speaker 1: then all that money that was being siphoned into these 638 00:36:17,760 --> 00:36:20,760 Speaker 1: you know, gambling tokens will find its way into bitcoin. 639 00:36:21,880 --> 00:36:23,520 Speaker 1: And so that's why I said, I think the Last 640 00:36:23,600 --> 00:36:26,640 Speaker 1: Bowl run of crypto but not of bitcoin. I think 641 00:36:26,680 --> 00:36:29,560 Speaker 1: this is very bearish for crypto as a category. I 642 00:36:29,560 --> 00:36:33,640 Speaker 1: think it's very bullish for bitcoin. And I believe people 643 00:36:33,680 --> 00:36:36,080 Speaker 1: are now starting to realize, like these are not the same, 644 00:36:36,440 --> 00:36:37,920 Speaker 1: and all of this money that was finance we over 645 00:36:37,920 --> 00:36:40,239 Speaker 1: there will eventually find its way into bitcoin. But that's 646 00:36:40,280 --> 00:36:42,719 Speaker 1: my take. If you're just tune in, you listening to 647 00:36:42,719 --> 00:36:45,120 Speaker 1: the Mark Mos Show, we are talking about the f 648 00:36:45,160 --> 00:36:50,480 Speaker 1: t X blow up, the cryptocurrency market melt down, and 649 00:36:50,600 --> 00:36:53,560 Speaker 1: the fraud that happened because of that. If you missed 650 00:36:53,600 --> 00:36:55,200 Speaker 1: any of it, don't worry. Catch me on the podcast. 651 00:36:55,320 --> 00:36:58,279 Speaker 1: Just check out Mark Boston your favorite podcast player. Check 652 00:36:58,320 --> 00:37:00,520 Speaker 1: me out on YouTube as well. I'll be back with 653 00:37:00,680 --> 00:37:01,719 Speaker 1: more in a minute, so I don't go away.