WEBVTT - The Mark Moss Show Nov 23, 2022 0:00:00.000 --> 0:00:02.400 Hello, and welcome to another episode of The Mark mo Show, 0:00:02.400 --> 0:00:06.320 where we're talking about the decentralized Revolution. Of course, each 0:00:06.320 --> 0:00:09.280 and every week we talked about through the lens of politics, finance, 0:00:09.320 --> 0:00:12.479 and technology, and the story we are talking about today 0:00:12.760 --> 0:00:18.320 is really a battle over decentralization, what people think is 0:00:18.400 --> 0:00:22.720 decentralized versus what really is. And this really is about 0:00:22.760 --> 0:00:27.440 cryptocurrency and what is decentralized and what is centralized, and 0:00:27.960 --> 0:00:30.400 it's centralized. That is the problem, which is what we're 0:00:30.440 --> 0:00:32.120 trying to get away from, which is why we're talking 0:00:32.120 --> 0:00:37.000 about the decentralized Revolution. Now, if you are just tuning 0:00:37.080 --> 0:00:39.240 in and you've missed. In the beginning, we talked about 0:00:39.280 --> 0:00:41.840 this f t X blow up in the cryptocurrency space. 0:00:42.120 --> 0:00:45.800 We framed up um how this whole thing worked, how 0:00:45.800 --> 0:00:48.200 they are two companies worked, how they create value out 0:00:48.200 --> 0:00:51.159 of thin air, why venture capitalists love it, why the 0:00:51.200 --> 0:00:53.640 media loves it, why advertisers love it, why it got 0:00:53.720 --> 0:00:56.320 so much hype and play. Then we got into the 0:00:56.400 --> 0:01:00.280 deep ties that Sam Bankman Freed, the founder of ft X, 0:01:00.320 --> 0:01:03.920 have inside the government. So if you missed any of that, 0:01:04.080 --> 0:01:07.440 go back and check out our one on the podcast. 0:01:07.720 --> 0:01:11.399 You can link to that um or um check me 0:01:11.400 --> 0:01:13.840 out on YouTube as well, just search Mark Moss and 0:01:14.040 --> 0:01:17.400 watch me there as well. Now let's keep going in here. 0:01:17.440 --> 0:01:20.480 So we were talking about the deep ties that they 0:01:20.520 --> 0:01:22.640 have to the government, and that's part of the problem, 0:01:22.680 --> 0:01:25.199 of course, right, It's always about the favors. It's always 0:01:25.200 --> 0:01:27.160 about the money that you want to put into the market. 0:01:27.480 --> 0:01:29.679 And we know that there were deep ties, like I said, 0:01:29.720 --> 0:01:32.400 deep ties with the World I Coming Forum, deep ties 0:01:32.520 --> 0:01:36.560 even in the Ukrainian government, deep ties into the US government, 0:01:36.680 --> 0:01:39.360 both in donating being the second largest donor to the 0:01:39.440 --> 0:01:44.319 binder Bind administration and then donating over forty million dollars 0:01:44.600 --> 0:01:48.440 for the mid term elections, basically influencing every election across 0:01:48.480 --> 0:01:53.680 the country. Big big, big big deals um. On top 0:01:53.760 --> 0:01:56.120 of this, as as bad as that is, then we 0:01:56.200 --> 0:01:59.280 also know that there's connections with the regulatory bodies, the 0:01:59.360 --> 0:02:04.080 SEC and the CFTC. We can see here that Sam 0:02:04.120 --> 0:02:07.040 Bankman Freed's father, so I said, both of his parents 0:02:07.080 --> 0:02:12.160 are very connected into the Democratic Party, both in influencing policy, writing, 0:02:12.200 --> 0:02:16.240 policy and so forth. We can see here that we 0:02:16.280 --> 0:02:21.079 can see here that Sam Bankman Freed's father actually drafted 0:02:21.160 --> 0:02:27.400 tax legislation force Senator Elizabeth Warren and donated thousands of 0:02:27.440 --> 0:02:31.600 dollars to their party. So Senator Elizabeth Warren, who of 0:02:31.639 --> 0:02:34.840 course has been very very outspoken about this, and she's 0:02:34.840 --> 0:02:36.720 going to get to the bottom of this, and she's 0:02:36.720 --> 0:02:40.120 going to fix this and she needs to protect the people. Meanwhile, 0:02:41.160 --> 0:02:44.760 the guy's father writes her legislation and her policies and 0:02:44.800 --> 0:02:49.760 donates money to her campaign. Oh what a tangled web 0:02:50.040 --> 0:02:53.880 this is. She introduced a bill called the Tax Filing 0:02:53.919 --> 0:02:59.200 Simplification Act in Warren, who currently chairs both the Senate 0:02:59.240 --> 0:03:03.919 Banking Committee Economic Policy and the Senate Finance Committee's Fiscal 0:03:03.960 --> 0:03:12.160 Responsibilities of Committee. Um, is somehow connected to this. Now, 0:03:12.560 --> 0:03:14.040 you know, I'm not saying she's a part of it. 0:03:14.040 --> 0:03:16.680 I'm not going to draw that conclusion. But again, this 0:03:16.919 --> 0:03:25.200 goes deep. Bankman Fried says here was donated the Democratic Party. 0:03:25.240 --> 0:03:28.760 We're talking about that, all right, So that's part of it. Um. 0:03:28.840 --> 0:03:31.040 We also know, like I said earlier, if he just 0:03:31.080 --> 0:03:34.560 tuned in, that his girlfriend ran the sister company Alameda, 0:03:35.080 --> 0:03:39.920 which UM, her father was the boss of Gary Ginsler, 0:03:40.080 --> 0:03:43.840 the head of the SEC. We also know that, Um, 0:03:43.960 --> 0:03:48.600 when all of this came out um FTX froze everybody's money, 0:03:48.640 --> 0:03:51.640 wouldn't allow anybody to get out. Um, there was about 0:03:51.640 --> 0:03:56.360 a billion dollars sitting on the exchange that could potentially, 0:03:56.440 --> 0:04:00.920 you know, get divided up between customers or could get 0:04:02.640 --> 0:04:06.760 you know, divided up creditors or something like that. Um, 0:04:06.800 --> 0:04:09.040 there was about one point seven billion dollars in assets 0:04:09.040 --> 0:04:14.920 there and then they just disappeared. So f t X says, oh, 0:04:15.000 --> 0:04:17.839 there's a hack. There was a hack. All that money 0:04:17.920 --> 0:04:22.880 just disappeared, which is pretty coincidental. Right again, where they're smoked, 0:04:22.880 --> 0:04:26.720 there's fire. Um it says that it might be taken 0:04:26.800 --> 0:04:29.599 up by the SEC and d o J in their investigations. 0:04:29.600 --> 0:04:35.320 But Bankman Freed allegedly allegedly implemented a back door in 0:04:35.480 --> 0:04:40.000 t f into f d x's book keeping system. Reuters 0:04:40.040 --> 0:04:42.320 repeated that the alleged back door enabled Bankman Freed to 0:04:42.440 --> 0:04:46.640 execute commands that could alter the company's financial records without 0:04:46.960 --> 0:04:53.880 alerting other people, including external auditors. The very fact that 0:04:53.920 --> 0:04:58.040 they would have something like this again, why do you 0:04:58.120 --> 0:05:01.680 build something like this so you could move funds without 0:05:01.720 --> 0:05:06.040 alerting auditors unless you are moving funds without alerting auditors, 0:05:06.279 --> 0:05:09.280 or you want to move funds with like like uh, 0:05:09.360 --> 0:05:11.159 I mean this is like this whole like, uh, you 0:05:11.200 --> 0:05:14.880 know now now all this conspiracy that people were the 0:05:15.000 --> 0:05:18.600 platform for for saying that, you know, the COVID could 0:05:18.600 --> 0:05:21.280 have come from a lab, and now the government says, yeah, 0:05:21.320 --> 0:05:23.760 it actually did come from a lab. Uh. But why 0:05:23.839 --> 0:05:26.320 were they work why do they work on these things 0:05:26.320 --> 0:05:29.240 in a lab? Like what's what's the point unless you 0:05:29.240 --> 0:05:31.640 want to use them? Right, and so why would you 0:05:31.640 --> 0:05:34.320 build a back door unless you want to use it? 0:05:34.400 --> 0:05:38.800 And it gets even better than that. So the there's 0:05:38.800 --> 0:05:43.480 a guy named Dan Freedberg who is the Chief Regulatory 0:05:43.520 --> 0:05:48.760 Officer the middle word regulatory, the chief regulatory officer, the 0:05:48.839 --> 0:05:53.599 guy who's supposed to be in charge of regulations, Dan Freeburg. Oh, 0:05:53.720 --> 0:05:55.760 he's got a troubled past. It's a matter of fact. 0:05:55.920 --> 0:05:59.800 He comes from another company called Ultimate Bets that got 0:06:00.000 --> 0:06:04.680 brought up on charges of having what, oh a back door? 0:06:05.480 --> 0:06:09.159 M hmm seems pretty coincidental. So he had a company 0:06:09.160 --> 0:06:13.440 called Ultimate Bets that was fined massively for having a 0:06:13.520 --> 0:06:16.800 back door something he called god code that allowed him 0:06:16.800 --> 0:06:21.240 to see all the hands of all the other gamblers 0:06:21.240 --> 0:06:25.920 on the platform, so then he could then play against them. 0:06:26.080 --> 0:06:30.760 Imagine being playing poker and seeing all your opponents cards, 0:06:30.880 --> 0:06:33.600 knowing when you could bluff them, knowing when you should fold, 0:06:33.720 --> 0:06:36.240 et cetera. And that's what he built in, and he 0:06:36.279 --> 0:06:39.159 got busted for it. And now he just happens to 0:06:39.160 --> 0:06:42.880 be the chief regulatory officer of this company which has 0:06:43.240 --> 0:06:48.040 a back door in which, um, you know, billions of 0:06:48.080 --> 0:06:52.920 dollars of customer funds disappeared without triggering internal compliance or 0:06:52.960 --> 0:06:56.960 accounting red flags. Now, bankman Freed told Reuters that he 0:06:57.040 --> 0:07:01.640 hadn't implemented a back door, but the investigations show otherwise. 0:07:01.640 --> 0:07:04.240 And supposedly SEC and d o J are investigating this 0:07:05.800 --> 0:07:10.280 UM and it just keeps getting bigger and bigger and 0:07:10.320 --> 0:07:13.040 bigger and deeper and deeper and deeper. UM. So what 0:07:13.080 --> 0:07:17.600 else we can see here? That, as I said, the 0:07:17.760 --> 0:07:22.920 Maxine Waters, she's now um. Democrats decided to recommit funds 0:07:22.920 --> 0:07:26.080 from FTX donations towards charity or other party campaigns after 0:07:26.120 --> 0:07:29.840 they filed bankruptcy. Maxine Waters is dodging questions, says she 0:07:29.840 --> 0:07:32.160 doesn't want to get into it. She is the chairwoman 0:07:32.360 --> 0:07:38.360 of the House Financial Services Committee. She said they would 0:07:38.440 --> 0:07:46.200 be having a hearing to explore interesting. Um, it gets 0:07:46.320 --> 0:07:48.920 even deeper than that if we want to keep going. 0:07:49.400 --> 0:07:53.120 And what do I mean by that? Well, we can 0:07:53.160 --> 0:07:55.080 see that as I said, there's massive ties to the 0:07:55.120 --> 0:07:59.720 regulatory bodies, the SEC and the se f TC, Maxine Waters, 0:08:00.040 --> 0:08:03.400 House Financial Committee, Um, Senator Elizabeth Warren, I mean this 0:08:04.600 --> 0:08:08.280 the Biden administration, even the world document format, and it 0:08:08.280 --> 0:08:11.200 goes deep, deep, deep. And again, um, where there's smoke, 0:08:11.320 --> 0:08:14.920 there's fire. Typically, Now what happens next? And I think 0:08:14.920 --> 0:08:17.440 this is a key piece to understanding. Now. Hopefully if 0:08:17.480 --> 0:08:19.560 you're here on our one and you understood how this 0:08:19.720 --> 0:08:24.400 all worked, understanding what comes next is a little bit 0:08:24.440 --> 0:08:27.520 easier to understand. Now what comes next in the in 0:08:27.560 --> 0:08:30.000 the in the short to mid term for stam Bankman Freed, 0:08:31.160 --> 0:08:34.200 there's a you know, in in election markets, they run 0:08:34.240 --> 0:08:37.360 polls to find out who gets elected. The polls aren't 0:08:37.360 --> 0:08:40.679 typically as accurate as the betting markets are. The betting 0:08:40.720 --> 0:08:42.880 markets are typically more accurate because people actually put their 0:08:42.880 --> 0:08:44.200 money where their mouth is. They have to put up 0:08:44.240 --> 0:08:47.839 money to vote versus polls. People just like say whatever, um, 0:08:47.920 --> 0:08:51.360 And there's actually a betting market on will SPF be 0:08:51.520 --> 0:08:57.040 federally indicted by the end of the year. Pretty interesting 0:08:58.440 --> 0:09:02.880 and uh, you won't believe what the betting markets are saying, 0:09:02.960 --> 0:09:06.200 or maybe you will. Um, if his money, his billions 0:09:06.200 --> 0:09:08.400 of dollars he created out of thin air, defrauded with 0:09:08.480 --> 0:09:11.760 counterfeit money and poured into the political parties of the 0:09:11.800 --> 0:09:15.080 Democrats and the and the president and the regulators, maybe 0:09:15.240 --> 0:09:18.240 will believe what this betting market says. But I'll be 0:09:18.280 --> 0:09:19.720 back with that and more in a minute of Just 0:09:19.720 --> 0:09:21.400 tune in your listening to the Mark Moss Show. We're 0:09:21.400 --> 0:09:24.719 talking about the f t X fiasco, the crypto market meltdown. 0:09:25.240 --> 0:09:26.880 We'll be back with that and more in a minute, 0:09:26.920 --> 0:09:28.959 So don't go away, all right, Welcome back. If you're 0:09:28.960 --> 0:09:30.840 just tuning in, you're listening to the Mark mos Show. 0:09:30.880 --> 0:09:34.560 We're talking about Sam Bankman freed f t X and 0:09:34.679 --> 0:09:38.199 the blow up happening. I was talking about how, um, 0:09:38.240 --> 0:09:43.080 this is probably the biggest case of fraud that we've seen, 0:09:43.520 --> 0:09:49.400 you know, maybe potentially since I don't know Enron, or 0:09:49.440 --> 0:09:53.200 since um, you know Bernie made off, potentially something like that. 0:09:53.679 --> 0:09:58.040 As a matter of fact, Uh, speaking about in Ron. 0:09:59.280 --> 0:10:02.560 Ron if you're not familiar, was a giant company that 0:10:02.880 --> 0:10:06.520 did massive amounts of fraud and money laundering, embezzlement and 0:10:06.559 --> 0:10:09.760 stuff like that. And Um, what we can see is 0:10:09.800 --> 0:10:14.040 that when f t X filed for bankruptcy, they filed 0:10:14.040 --> 0:10:16.840 for Chapter eleven and they had to file an affidavit, 0:10:17.320 --> 0:10:22.079 and they appointed a restructuring CEO, John Ray the Third, 0:10:22.280 --> 0:10:27.319 and he oversaw in Ron's bankruptcy proceedings and he, after 0:10:27.440 --> 0:10:30.800 looking at the contents of their affid David calls f 0:10:30.960 --> 0:10:35.240 t x is case the worst of his career and 0:10:35.280 --> 0:10:40.079 the contents are shocking. So the guy who sat on 0:10:40.240 --> 0:10:45.760 arguably the biggest fraud case in history is now saying 0:10:45.840 --> 0:10:48.160 that this is actually the worst that he's just seen 0:10:48.160 --> 0:10:51.120 in his whole career. So let's see what he has 0:10:51.160 --> 0:10:53.240 to say here. Um, it says, Look, we owe a 0:10:53.280 --> 0:10:54.600 lot of people a lot of money, and we don't 0:10:54.600 --> 0:10:58.520 know exactly where it all is, but we're looking. We 0:10:58.559 --> 0:11:00.640 don't know where the money went, we don't know who 0:11:00.679 --> 0:11:02.439 we owe to, but don't worry, We're gonna look into 0:11:02.480 --> 0:11:06.680 it all right. Um. He says that it's one of 0:11:06.679 --> 0:11:09.640 the He is one of the most experienced restructuring executives 0:11:09.640 --> 0:11:11.800 in the world, having an overseen n RON and a 0:11:11.840 --> 0:11:16.600 slew of other high profile bankruptcies. Um Ray's statements are 0:11:16.640 --> 0:11:20.360 given under penalty of perjury. All right, So that's to 0:11:20.400 --> 0:11:23.880 say that a serious investigation. Ray opens with his experience 0:11:23.880 --> 0:11:26.400 and then immediately condemns f t X as the worst 0:11:26.840 --> 0:11:29.880 case of his career. Quote. Never in my career have 0:11:29.960 --> 0:11:33.319 I seen such a complete failure of corporate controls and 0:11:33.400 --> 0:11:37.679 such a complete absence of trustworthy financial information as occurred 0:11:38.040 --> 0:11:43.079 here in quote. So it wasn't just like some mistake. 0:11:43.320 --> 0:11:48.160 When you have a corporation and you have investors. There 0:11:48.200 --> 0:11:50.839 are things that are required to be done by law, 0:11:51.600 --> 0:11:53.960 and they did none of those. Never have seen such 0:11:53.960 --> 0:11:56.480 a complete failure of corporate control. So there's controls that 0:11:56.520 --> 0:11:58.520 are supposed to be in place to make sure that 0:11:58.559 --> 0:12:01.320 you do the best things, and they have failed all 0:12:01.360 --> 0:12:04.160 those things. He identified four businesses within f t X, 0:12:04.440 --> 0:12:07.480 so we kind of know about these Alameda um different 0:12:07.480 --> 0:12:10.720 f t X things, and that's not super important, but 0:12:10.800 --> 0:12:14.720 he said, he immediately communicates distrust of any furnished financials. 0:12:15.440 --> 0:12:17.480 F t X US balance sheet shows one point three 0:12:17.520 --> 0:12:21.240 six billion in assets. However, he says, quote because this 0:12:21.280 --> 0:12:24.040 balance sheet was produced while the debtors were controlled by 0:12:24.160 --> 0:12:27.559 Mr Bankman Fried, I do not have confidence in in quote, 0:12:27.679 --> 0:12:29.560 so basically saying, look, we don't trust anything that they 0:12:29.600 --> 0:12:32.960 have to say. We can't believe any of this. Um. 0:12:33.000 --> 0:12:36.280 He then goes on to recount SPS negotiations with attorneys 0:12:36.320 --> 0:12:39.920 and his father around filing chapter eleven, which is in 0:12:40.000 --> 0:12:43.120 his interview with Vox. SPF stated as his biggest regret, 0:12:43.200 --> 0:12:47.000 claiming that everything would be fixed by now if he 0:12:47.040 --> 0:12:54.479 hadn't so f SPF the head of f t X UM, 0:12:54.520 --> 0:12:55.920 he just can't keep his mouth out and he can't 0:12:55.920 --> 0:13:01.120 stay out of trouble. He started having um U a 0:13:01.640 --> 0:13:08.200 d M conversation with a reporter from Vox, and in 0:13:08.240 --> 0:13:13.960 this he, I mean just gave out so much damning information. 0:13:14.840 --> 0:13:19.040 It's incredible. It's incredible that he would actually say this 0:13:19.160 --> 0:13:21.199 and not just say it like verbally where someone could 0:13:21.240 --> 0:13:24.960 misconstrue it. No, no, no, he actually put it in 0:13:25.120 --> 0:13:31.120 text where people could read it. The reporter said, quote, 0:13:31.760 --> 0:13:35.040 you were really good at talking about ethics for someone 0:13:35.080 --> 0:13:37.600 who kind of saw it all as a game with 0:13:37.640 --> 0:13:41.400 winners and losers, and Sam Bankman Fried says, yeah, he he, 0:13:42.000 --> 0:13:46.200 I had to be he he. He's laughing about it. 0:13:46.760 --> 0:13:48.920 So you were talking. You're good about talking about um 0:13:48.920 --> 0:13:52.600 Paul ethics, right, because he was in Washington trying to 0:13:52.679 --> 0:13:56.040 push regulations to supposedly regulate the fraud out of the 0:13:56.040 --> 0:13:58.760 crypto industry while he was doing it. So the reporter said, hey, 0:13:58.760 --> 0:14:01.439 you were good about talking about it, and he said yeah. 0:14:01.480 --> 0:14:04.480 He he had to be. It's what reputations are made up. 0:14:04.520 --> 0:14:07.600 To some extent, I feel I feel bad for those 0:14:07.640 --> 0:14:11.480 who get ft by it, by this dumb game we 0:14:11.720 --> 0:14:16.080 woke Westerners play, where we say all the right shibbo 0:14:16.160 --> 0:14:19.600 with and so everyone likes us. So he says, right 0:14:19.600 --> 0:14:22.840 here to the reporter, I had to I had to pretend. 0:14:23.280 --> 0:14:25.400 I feel bad for those who get fed by it. 0:14:25.720 --> 0:14:29.640 So you know, those hundreds of thousands of families who 0:14:29.840 --> 0:14:33.440 literally lost their life savings, and people who don't have 0:14:33.520 --> 0:14:36.280 medications now, and kids can't go to college now, and 0:14:36.320 --> 0:14:38.960 they don't have homes anymore. I feel bad for those 0:14:38.960 --> 0:14:42.160 people who get fed by my lies, my pretending to 0:14:42.200 --> 0:14:48.360 be somebody, by this dumb game we woke Westerners play, 0:14:48.360 --> 0:14:52.440 where we say all the right things so people like us. No, 0:14:53.440 --> 0:14:57.280 we don't do that. That's called lies, that's called deceit 0:14:57.720 --> 0:15:00.840 and that's called fraud. No, that's out what we do. 0:15:01.080 --> 0:15:03.680 That's what he did. This is what he said in 0:15:03.880 --> 0:15:09.520 text message. I mean, I just can't believe it. Um. 0:15:09.560 --> 0:15:12.360 The whole world thought he was the smartest guy in 0:15:12.400 --> 0:15:15.400 the world, the smartest Some of the smartest investors in 0:15:15.480 --> 0:15:18.920 the world got totally scammed by this guy, which I 0:15:18.920 --> 0:15:21.720 don't understand because he can't even keep his mouth shut. 0:15:21.920 --> 0:15:25.200 This is what he said in text messages. He put 0:15:25.280 --> 0:15:28.400 this into writing. Nobody with half a brain would put 0:15:28.400 --> 0:15:33.600 that stuff into writing. Um. Elon Musk apparently he wanted 0:15:33.640 --> 0:15:36.520 to donate, or not donate, but invest up the fifteen 0:15:36.560 --> 0:15:39.600 billion dollars into Elon Must take over of Twitter. And 0:15:39.680 --> 0:15:41.840 Elon Must said, just ever sitting down with him, just 0:15:41.920 --> 0:15:45.200 for a couple of minutes, his BS alarms were going 0:15:45.240 --> 0:15:47.160 off and he knew that he couldn't take on any 0:15:47.200 --> 0:15:53.400 of his money. So, um, this was not Uh, this 0:15:53.440 --> 0:15:56.960 was this was not something that nobody caught. People caught it. 0:15:57.000 --> 0:16:01.320 Elon Musk caught it. They could see it. Now. People 0:16:01.440 --> 0:16:04.160 didn't see it because they didn't want to see it. Um, 0:16:04.200 --> 0:16:06.520 but let's see, let's see if we can find some 0:16:06.600 --> 0:16:10.280 more of what he said here. There was a whole 0:16:10.400 --> 0:16:13.320 thread on it. But I seem to have lost it anyway. 0:16:13.720 --> 0:16:17.720 Um he he bamboozled. Will say, well, he bamboozled the industry. 0:16:17.760 --> 0:16:21.960 We had Jim Kramer. Jim Kramer Um called him the 0:16:22.000 --> 0:16:29.360 next Jp Morgan. We have Fortune magazine, saying that he 0:16:29.440 --> 0:16:33.000 was going to be the next Warren Buffett, but instead 0:16:33.640 --> 0:16:38.520 all he turned out to be was a big Bernie 0:16:38.520 --> 0:16:40.080 made off. What else did he say here? He said, 0:16:42.680 --> 0:16:47.200 he said, uh, uh, they said the reporter said, you 0:16:47.200 --> 0:16:48.680 said a lot of stuff about how you wanted to 0:16:48.720 --> 0:16:51.280 make regulations just good ones. Was that pretty much just 0:16:51.440 --> 0:16:56.040 PR two? And he said, there's really no one out 0:16:56.040 --> 0:17:00.160 there making such good things happen. Bad things don't. So 0:17:00.240 --> 0:17:04.960 he said, uh, he said, yeah, just pr F regulators. 0:17:05.119 --> 0:17:08.600 They make everything worse. They don't protect customers at all. 0:17:10.160 --> 0:17:12.920 That's his quote. So you you talked a lot about 0:17:12.960 --> 0:17:17.320 wanting to protect us with regulations, was that pr Yeah, 0:17:17.520 --> 0:17:21.359 just pr F regulators. They make everything worse, they don't 0:17:21.359 --> 0:17:25.520 protect customers at all. Hopefully that might be a warning 0:17:25.640 --> 0:17:29.879 shot across the bow of the sec um because he 0:17:29.920 --> 0:17:33.760 called them out F the regulators. They make everything worse, 0:17:33.760 --> 0:17:36.040 they don't protect customers. At all. Well, they certainly didn't 0:17:36.040 --> 0:17:40.120 protect customers at all from losing ten billion dollars. So 0:17:40.359 --> 0:17:42.479 let's talk about what regulators are gonna do next and 0:17:42.520 --> 0:17:46.120 what that means for the industry overall, and what I'm 0:17:46.160 --> 0:17:50.919 calling the last cryptocurrency bowl market will ever see. So 0:17:50.920 --> 0:17:52.720 what do I mean by that? But we'll talk about 0:17:52.760 --> 0:17:54.119 that in a minute. If you're tuning and listen to 0:17:54.160 --> 0:17:57.399 the Markma Show, we're talking about, of course, the decentralized Revolution, 0:17:57.400 --> 0:18:00.199 but we're talking about the s SPF, n f F 0:18:00.280 --> 0:18:01.840 t X below. I'll be right back with more. Don't 0:18:01.880 --> 0:18:04.119 go away, Hello, and welcome back. If you are just 0:18:04.119 --> 0:18:06.200 tuning in you're listening to the Mark Mo Show, we're 0:18:06.200 --> 0:18:12.040 talking about the ft X cryptocurrency exchange blowing up, the 0:18:12.119 --> 0:18:15.080 largest meltdown we've seen in the cryptocurrency space. Now I 0:18:15.119 --> 0:18:18.240 want to talk about regulations. So just before we went 0:18:18.280 --> 0:18:24.080 to break, I was reading quoting a direct message conversation 0:18:24.160 --> 0:18:28.920 that SPF had with some reporter from Box and he said, 0:18:29.520 --> 0:18:35.280 they said, they asked him, Uh, you said a lot 0:18:35.320 --> 0:18:37.879 of stuff about how you wanted to make regulations. Was 0:18:37.960 --> 0:18:42.840 that just pr two? He says, Yes, just pr F 0:18:43.080 --> 0:18:47.000 regulators they make everything worse. They don't protect consumers or 0:18:47.040 --> 0:18:49.760 I'm sorry, they don't protect customers at all. And so 0:18:50.200 --> 0:18:52.520 the SEC is supposed to be there to protect customers. 0:18:52.680 --> 0:18:55.720 He says, they don't do it, and they certainly didn't. 0:18:56.040 --> 0:18:59.280 They were all up in his business. If they can't 0:18:59.280 --> 0:19:02.159 catch this, they can't catch anything. If if if a 0:19:02.280 --> 0:19:05.440 law abide incorporation forgets to cross a T on a document, 0:19:05.560 --> 0:19:07.359 they're gonna be all up in their business with fines. 0:19:07.640 --> 0:19:10.160 But him, he's just still in ten billion dollars. Never 0:19:10.280 --> 0:19:14.400 mind that they certainly didn't protect customers. So what happens, 0:19:14.440 --> 0:19:17.879 Well again I read I told you there's a betting 0:19:17.920 --> 0:19:21.480 market to see whether he gets indicted or not. Sevent 0:19:21.600 --> 0:19:24.080 say no, he will not be indicted by the end 0:19:24.080 --> 0:19:27.000 of the year. He should already be in handcuffs. He 0:19:27.040 --> 0:19:30.520 should have been handcuffed immediately as soon as we found 0:19:30.520 --> 0:19:32.440 out he stole that money. It should have been game over. 0:19:32.880 --> 0:19:35.040 What is he even doing walking around? What do we mean? 0:19:35.240 --> 0:19:37.520 Will he be indicted? Are you kidd he meet? We 0:19:37.520 --> 0:19:40.080 have all the facts we need, We have the information 0:19:40.200 --> 0:19:45.560 right here, we have all the documentation everything. The fact 0:19:45.560 --> 0:19:48.159 that he's walking around a freeman is just unbelievable to me. 0:19:49.840 --> 0:19:52.359 And will he ever be indicted? Well, we don't know 0:19:52.400 --> 0:19:56.800 the betting. Marcus saying no, why Well, Gary Ginsler ahead 0:19:56.800 --> 0:19:59.879 of the sec says, well, it's a Bahamas it's a 0:20:00.080 --> 0:20:02.399 Hamas corporation. So I don't know if we have jurisdiction. 0:20:03.800 --> 0:20:07.040 You don't have jurisdiction. Well, he did have an offshore corporation, 0:20:07.080 --> 0:20:10.359 but he also had f t x US. He's also 0:20:10.600 --> 0:20:13.840 a U. S citizen. He also has defrauded all these 0:20:13.840 --> 0:20:17.040 American citizens of money. What do you mean we don't 0:20:17.080 --> 0:20:22.040 have jurisdiction. I mean that's just insanity for Gary Gains 0:20:22.080 --> 0:20:25.879 that is saying something like that, we need heads to roll, 0:20:25.960 --> 0:20:29.160 that's what we need. We need, we need examples. Now 0:20:29.200 --> 0:20:33.720 I'm afraid that this is just unfortunately, as I'm calling 0:20:33.760 --> 0:20:37.280 the decentralized revolution, the entire world is going through a 0:20:37.320 --> 0:20:40.480 revolution and it's going to be very messy. But we're 0:20:40.480 --> 0:20:43.520 seeing this all over. Nobody wants to take accountability, Nobody 0:20:43.520 --> 0:20:45.440 wants to take responsibility. All we want to do is 0:20:45.440 --> 0:20:48.520 continually shuck off that. And so it's not the federal 0:20:48.560 --> 0:20:51.000 reserves fault. They didn't understand inflation and they printed way 0:20:51.000 --> 0:20:52.520 too much money, and now we have inflation. It's not 0:20:52.600 --> 0:20:56.479 their faults, nobody's fault. Nobody's fault. You know, all these 0:20:56.520 --> 0:20:59.760 people that perpetrated this whole COVID pandemic and the lockdowns 0:20:59.760 --> 0:21:02.080 and all the damage and unharmedus cause from that. And 0:21:02.119 --> 0:21:04.320 now they're saying the Atlantic ran that piece and said 0:21:04.800 --> 0:21:07.000 we just need amnesty. You know, we didn't know what 0:21:07.000 --> 0:21:09.720 we were doing. Can we just forgive all that? No? No, no, 0:21:09.720 --> 0:21:13.919 no no. We need accountability, We need responsibility, and we 0:21:13.960 --> 0:21:18.880 need examples made. People must pay the price, not just 0:21:19.040 --> 0:21:22.040 because they've done wrong, which they have, but also so 0:21:22.160 --> 0:21:25.000 other people don't do the same thing. You don't just 0:21:25.080 --> 0:21:28.760 wipe out ten billion dollars of people's wealth like it's 0:21:28.760 --> 0:21:31.879 just a number on a spreadsheet, without understanding the lives 0:21:31.880 --> 0:21:33.560 that are at risk. You don't just walk away from 0:21:33.600 --> 0:21:36.600 that and pretend like nothing happened, because what prevents the 0:21:36.640 --> 0:21:39.000 next guy from doing that? I mean, shoot, if you 0:21:39.000 --> 0:21:42.320 can just go still ten billion dollars and have no um, 0:21:42.359 --> 0:21:45.760 no responsibility or consequences for that, I mean maybe we 0:21:45.760 --> 0:21:48.919 should all just do that now. As a matter of fact, 0:21:49.359 --> 0:21:56.080 I've read before UM Vladimir Linen um in Russia. Bizarre 0:21:56.080 --> 0:21:59.040 of Russia a hundred years ago said that the best 0:21:59.119 --> 0:22:02.800 way to destroy capitalism is to debouch the currency. So 0:22:02.880 --> 0:22:06.960 de Devalue debase the currency through inflation. And he said, 0:22:07.320 --> 0:22:11.280 I'm paraphrasing here, I'm not reading directly, but he said, Um, 0:22:11.320 --> 0:22:16.800 through inflation you can steal and confiscate wealth arbitrarily. So 0:22:17.000 --> 0:22:19.520 just as as you want, you can just take people's money. 0:22:19.600 --> 0:22:21.560 And then you wanted to say that through a series 0:22:21.560 --> 0:22:25.840 of inflation, you'll lose all relation to money and society 0:22:25.840 --> 0:22:27.800 will break down. The best way to get rich will 0:22:27.800 --> 0:22:34.280 be through theft and gambling. Sam Bankman Fried Jim Kramer 0:22:34.320 --> 0:22:36.960 said the next Jp Morgan. Fortune Magazine said he's the 0:22:37.000 --> 0:22:39.360 next war and Buffett. He had built a thirty two 0:22:39.400 --> 0:22:43.359 billion dollar company in three years. Um. All the political elite, 0:22:43.480 --> 0:22:46.280 the world Ecomic Forum, Bill Clinton, Tony Blair, the Bide 0:22:46.280 --> 0:22:49.040 administration all praised him. He's the smartest guy in the world. 0:22:49.600 --> 0:22:52.800 All theft. So remember what Vladimir Lenin said, The best 0:22:52.840 --> 0:22:55.080 way to get wealth will be through gambling and theft. 0:22:56.000 --> 0:22:58.680 He stole all the money, he counterfeited it, and then 0:22:58.920 --> 0:23:01.440 he made more money by given it to gamblers. Remember 0:23:01.480 --> 0:23:05.560 gambling and theft. He theft and he made money off gambling. 0:23:07.720 --> 0:23:09.720 And if we don't said an example, then we're just 0:23:09.720 --> 0:23:12.280 gonna get more of the same. Now, I wouldn't do it, 0:23:12.320 --> 0:23:15.199 because you know, I have morals. Luckily, I have a 0:23:15.280 --> 0:23:16.920 I have a father, I have a family that raised 0:23:16.920 --> 0:23:21.080 me up with morals and integrity and a conscience. Unfortunately 0:23:21.119 --> 0:23:23.640 most people don't these days. And so if you don't 0:23:23.640 --> 0:23:26.440 make an example out of this, if there's no consequences 0:23:26.440 --> 0:23:28.320 to pay, if there's no responsibility, then what will stop 0:23:28.320 --> 0:23:29.920 people from doing the same thing? And of course the 0:23:29.960 --> 0:23:36.080 answer is nothing will. My guess is though, that I 0:23:36.119 --> 0:23:39.919 think we're going to see some massive regulations come from this. 0:23:40.040 --> 0:23:43.280 I think we're gonna have to see Chair SEC Chair 0:23:43.359 --> 0:23:47.719 Gainsler said this week quote non compliant end quote crypto 0:23:47.760 --> 0:23:53.080 industry um needs to be cracked down on. He says, uh, 0:23:53.240 --> 0:23:55.240 crypto investors need better protection in the space that is 0:23:55.280 --> 0:24:00.399 significantly non compliant despite clear regulations. US Security An Exchange 0:24:00.400 --> 0:24:04.040 Commissioner Gary Ginsler said in an interview to CNBC on Thursday, 0:24:04.240 --> 0:24:07.040 he said, quote the runway is running out. Investors around 0:24:07.040 --> 0:24:09.840 the globe are getting hurt in quote yeah, no, kidding. 0:24:10.640 --> 0:24:17.480