If you've not been living in a cave this past week and you may be a cave man, a cave woman or a cave person, I don't know. You're aware of the massive scandal surrounding FCX and Alameda Research. The name Sam Bankman-fried is the talk of crypto Twitter, and his cryptic tweets make for even more interesting conversation and speculation. Billions of dollars in crypto are now gone as centralized exchanges continue to fall and people are pissed as they
should be. The info that's turning up as people dig into the story is making for one heck of a Netflix movie. We're going to share the most relevant and current information along with our irrelevant thoughts and opinions on this SBF. What a h. Bad News Episode number 648. Of the bad crypto podcasts. Five.
Four, three. How are you all? Who's bad? I.
And welcome to the Bad Crypto podcast, the show for the crypto curious and the crypto serious I'm Joel com that's Travis right and I was wrong. This is not episode 648. It's episode 649. So when we. Unlike many journalistic endeavors out there, when we make an error we correct it front page correct that not back page in point six font print.
There you go. And here's the deal. I'm wearing my Darth Vader shirt because who's more corrupt than Darth Vader? Right? And so we're talking about SBF and f t x w t f. We talked about it last time we did a show earlier last week and the things were happening. I was traveling and here we are. And actually I said, I wish I had some swag and look, I got glasses, FTX glasses right here and wow, you know, FTL, you know, then the international ones not available in America. So there's FTC, USA,
and then there's the main FTL. So I've never actually put money into FTL and I'm glad about that. I've never really trusted them, especially after we chatted with Dominic Williams of Definitive, an Internet computer protocol, and he was saying some things that this dude had done to kind of tank his project and we'll get him back on the show in a future. And this is a complete shit show in the crypto world right now because, I mean, we last time we were talking, you know, Bitcoin was
kind of moving up. It was like 20, almost 22,000. Ethereum was at 16,000. And then all of a sudden the Bear Stearns of crypto has happened and now trust in crypto. It's almost like crypto is a bad word to people. Now you hear crypto like, Oh my God, I never get it. And that's a huge scam. Just to let you know, Bitcoin has never been hacked, right? It's only user errors. And so we've said this 700
bajillion 14 times. If it's not your keys, it's not your crypto, keep your crypto off the exchanges because here's what happens when you don't do that, right? So yeah, we.
Got some really interesting guests are going to be coming
up including Dominic hopefully soon. Brad Mills who was the one who was sounding the alert on Luna before Luna happened and came on this show in the spring and said, Be careful of Celsius, which caused me to remove my funds from Celsius two weeks before their scan and pop. He's got a lot to say about this and other centralized exchanges and Kristina Bruhahn of Continuum Market, who is watching all the data points of this market right now and
has some interesting things to say about this, the collapses in crypto, where it's going and how we fix it. The timestamp for today is the 14th of November 2022. It is 2:42 p.m. Atlantic Standard Time, that's Puerto Rico time and Coingecko dot com says the total crypto market cap is $867 billion bitcoin 616 645 Etherium 1245 and the BNB at 277 and Travis being not a financial advisor and taking forever to capitulate that we were indeed in a bear market. A very wrong about that. I
don't think we're done yet. That's just my personal opinion. I think that the I think maximum pain is yet to come. And we could talk a little bit about why that is. I think we should go ahead, though, and get into the news for today.
I agree. And I would say this, take that with a grain of salt, because when Joel says it's a bull market, it's going into a bear market. When Joel says it's going into a bear market, it might be a bull market. We don't know. Don't you know your own research .
Jim Cramer, has been a good indicator of that and he's saying buy Bitcoin now. So there you go. In a way, he agrees with me. It's a good thing by that means that it's going down. So, you know, in order to kick this off, what I'd like to do is Travis found a great video by a guy whose account is J G underscore nuke on Twitter. Go follow this guy rather than us. Try to summarize what's happened with FCX. He's put together a 99 second video and we're going to let you guys take a look at that and
listen to it. What he's got to say right now to kind of set the table. This is Sam Bankman-fried. People call him.
SBF. He's the founder of FDX.
He also controlled the crypto hedge fund called Alameda Research. But that's all gone now. He wants you to think he's a sweet guy, even. And a famous YouTuber who called him the.
Most generous man in the world.
Yep, that happened. Do this and back Freed is a liar and a crook. His personal crypto token was basically a Ponzi scheme hidden below layers of moon bro jargon. He even went on Bloomberg's podcast and bragged about it. Yup, that happened. Used his Ponzi token as collateral to borrow billions of real dollars that he couldn't pay back. He then used those real dollars to build an empire out of dying companies like Voyager.
And.
Blockfi. This led Jim Cramer to call him the new J.P. Morgan. That's weird. It's not like Jim Cramer to promote a billionaire con artist. SBF sold people cryptos like Bitcoin. Or so they thought. What they really bought from SBF was an IOU. But as long as everyone didn't cash in their IOU at the same time, the scheme worked until it didn't. This other A-hole who hates SBF came along and engineered a bank run with some passive aggressive tweets.
It worked. SBF didn't have enough money to repay everyone at once, and now his customers have lost everything. He'll be happy to know that this is exactly how every bank in the world operates. So where did all the money go? He misappropriated $4 billion trying to save his failing hedge fund. Woops, that's a felony. He spent $21 million on Super Bowl commercials. 5 million for the big guy, $40 million in campaign donations. I wonder what he wanted in return.
And everyone who's pointing at this story and saying this is exactly why we need to regulate crypto.
Remember that SBF stole billions. That's already a.
Crime.
And he spent a lot of it on bribing politicians. Also a crime in order to create a crypto monopoly for himself. Government regulations don't protect the customers, they protect the crooks. That's exactly what SBF was trying to do. This guy did a great job of summarizing, and it was a lot that he couldn't put in there because there's so much happening here. But way to go. JG_NUKE . We've got links to your Twitter and your video in the show notes, and you guys should go subscribe to
the work he's doing over there. There's a few others, Travis, that have been doing amazing work. One of them is Bit Boy, Ben Armstrong. He there is a video on YouTube that he posted two weeks before FTX went down and he said he was saying, get your money out. This thing is bad. Here's why. He was sounding the alarm and people were ribbing him and calling him out, calling him names. And he's been proven right. And now he has been
busting his ass to to get data. And frankly, I think he's probably putting his life at risk a little bit. Ben Armstrong did not suicide himself.
While we'll talk a little bit about more of that at the end of the episode, because there are some conspiratorial type of stuff that, you know, I could rant about, but I don't I don't know that this is all tied to the Makerdao guy who died recently in Puerto Rico, but we're going to cover why it could be connected and not about I don't know. It's all it's all conjecture.
So the the the long story short on this is that they were playing with essentially fake money. Right? They made their token and they loaned out far more than they had in reserves. And when it came time to pay the piper, they were way short on in the reserves. And some of these centralized exchanges have been lending to each other. Blockfi was impacted by this. They stopped withdrawals. Others are wondering, you know, who is the next one
to fall? Is Crypto.com in trouble there? There are people say no, that they're showing full disclosure on what they have in reserves. But do they really? You don't know who to trust anymore. And like Travis said, the key is not your keys, not your crypto, get off exchanges. Even Binance, you know, CZ comes out being the good guy here, but I'm not completely sold that he is. Are you.
Okay? Well, I mean, you know, think about this. It's called an exchange, which means, hey, you upload your crypto, you exchange it to what you want and then you pull your crypto back down. But people are conditioned to be like a bank, right? Oh, I need a bank account. And they're thinking that like people like FTX, like, Oh, let's store my money there. Well, you don't store your money on an exchange ever. You would only put a little bit in the exchange that you maybe want to trade. Right.
And so the fact is, is that, you know, it's hard to trust some of these and it's going to take a while to build some of this trust back, especially when you when you're talking about how after and how, you know, Sam Banks and fraud, how they actually had a backdoor built in to the system so they could move around customer funds from out from FTX to Alameda without triggering any sort of. Compliance or legal. And they
had that built in intentionally. And this is this is the thing that I think it's interesting that somebody I was going to I'll find the article actually, it's a tweet thread where somebody said this. Imagine you're McDonald's and you want to go ahead and create your own clown coin. Right?
Here's my clown coin. And what they started to do is leveraging their clown coin that they created, using that clown coin to then get loans, you know, from that clown coin and saying, all right, this is collateral for real money. And then people realizing that your clown coin is a shit coin not worth anything and that your whole business is propped up with this fictitious coin that you created. And so since that happened, the whole thing
has completely tanked. Now, you've seen this. If you've looked at crypto at all, you're going, Oh my God, what has happened? The bottom has fallen out. This is the Bear Stearns moment for crypto right now. I think this is Mt. Gox be way beyond because here we are. There's a lot of people coming in, a lot of adopters are coming in. You know, Joel, even Mr. Wonderful was talking about how great FCX is and how, you know, Sam Bankman-fried as parents, you know Bankman and Fried. Barbara
Fried and whatever Bankman's name is. And they are both, you know in compliance and you know they work at Stanford and it so it's interesting to see like when you look at his parents and I think we talked about this on the episode we did last week where his mom literally was creating a PAC, you know, ad Mind the Gap Democrat PAC. And then there's a whole lot of this money stuff that's being filtered around that we found out. And it's going back to a certain political party. It's really bizarre.
There you Go again. Bizarre being a political conspiracy realist, a coin telling us doing a good job of tracking everything as it's happening. The most recent information we have is that at Kraken, they have frozen the accounts of FTX group Alameda Research and their executives to protect their creditors. Now, look, the odds are that if you had money in this exchange, odds are it's gone. Now, if this people would say, especially Bitcoin purists, that this is not as bad as Mt. Gox,
because Mt. Gox at that time it accounted for a much a huge percentage of Bitcoin was stolen from Mt. Gox at the time. However, this rabbit hole goes much deeper into the conspiracy realist realm because we're talking big money and there's a really interesting association loop that takes place between FTX money for Ukraine and the Democrat Party. And this is not conspiracy theorists at all. This is all identifiable, proven factual, which you're not going to hear
about on the mainstream news. Ask yourself why you're not, and then you can really begin to go down the rabbit hole.
You know what's so crazy is this All this stuff came to light right around the time the US was having midterm elections, and we could go into some conspiracies around that. But I do notice this, Joel, is that every time I think it's 98, 99% of the time, whenever they delay the counting of a vote, it always turns out for the Democrats, right? I don't know. This is such a wild.
And mystery.
Dance. I don't know how that is. Why mystery magical. I think it's like, oh, how many votes do we need? Oh, okay, well, give us a week. And here we are. But, you know, talking about what was going on here. So we mentioned last week that it was like, hey, it doesn't look like you have liquidity. We have X amount of millions and millions, hundreds of millions worth of f, t, d, So we're going to start liquidating this that created this
bank run and then once this bank. And so they didn't have enough liquidity because they've been moving stuff back and forth and then the value of FTT just collapses, right? I mean, it was sitting around 22, you know, it was really it was very it was almost like a stablecoin for a while, just like a little bit up a little bit. That little bit.
It revealed the holes in the system is basically what it did. And that that runs like, okay, House of Cards, which by the way, as as our friend J.G. Nuke said in his video, this is the exact same system that the U.S. banking financial system runs on. If everybody was to go to the banks to say, I want my money, guess what? You're not going to get it. It's not
really there. It's a house of cards. But since the government has, you know, basically deputized itself to be in the business of fraud, then they get away with it. But this exchange clearly is not. And I.
Well, let's say I think you're right on on that. But as an aside, you know what you're talking about there. The Federal Reserve Bank has never been audited. We don't know how much money there is, how much money there is in how much paper money there is, how much digital money there is, and then they're leveraging it. And then if I take $1,000,000 and put it in the bank account, well then that bank can then loan out
$10 million because of fractional reserve banking. And so what was happening, if you look at the asset sheet for FTX, they say they have a billion plus dollars worth of Bitcoin, you know, vulnerability that that their customers own. And then on their asset sheet, they own zero bitcoin. Right? So that's a complete that's, that's worse than fractional reserve banking because you would think they would have at least $100 million worth of Bitcoin if they have $1,000,000,000 worth of
liquidity out there. So they were basically trading and selling fake Bitcoin essentially, it seems like.
So when all this happened, Sam Bankman-fried fled to the Bahamas where his office and his $40 million estate is, and Bahamian where he.
Shared with his ten roommates that all happened to work for FTX and Alameda. And they do a search on this because this is crazy. They were having some Fleetwood Mac 1970s sort of partner swapping crazy stuff going on while he was sitting there on his beanbag. And I don't know, dude, that is just so bizarre. And he goes, Oh, he only made himself he was only taking a very
small percentage of the revenue. He was only making $100,000 a year from FTX while he was living in a massive penthouse suite, you know, in the Bahamas and, you know, partnered up with the CEO of Alameda Research (CAROLINE ELLISON).
Whatever you think of Solana, if the case can now be made that Sam Bankman-Fried pumped it to the moon and they have sole collateral. They also wrapped something like 15,000 Bitcoins on SOL, which cannot be unwrapped now. So that's another 15,000 bitcoins that are removed from the the supply.
I wonder why. Why can they not unwrap it? Because this Solana is so low in price or something or they've always had some chain problems. I mean, once upon a time I was thinking of launching a project on Solana, but then they got hacked. They were DDOS . They had that double spending thing. So once you know about all of that stuff and all the problems that Solana has had, and then you tie it back up chain
to FTX, who really pumped it. It goes back to me that Dominic Williams story when he said, Man, right. Whenever they launched ICP, the price got popped up to $400 through FTX and then they put a short on it and the price tanked and they used that money to pump up Solana. So I think that they used a lot of that money from ICP, which is truly a decentralized platform. That was one of the things that Dominic Williams was talking about. Oh, hey, you know what?
We were the theory and hey, let's let's go ahead and build ourselves the most decentralized Internet protocol and let's create the crypto around that. And then a lot of those can't trillionaires in Ethereum and these other ones, they prefer to have control and power over the scenario. And so they did their best to tank ICP. Now, in my mind, I think ICP when it's all said and done, if it is what we think it is, then it could be a phenomenal project long term, not financial advice.
We've been talking about it for a year now and Bit Boy is finally latched on to it and he is. He understands ICP has been talking about it. So this is the the CEO of Alameda Research her name is Caroline something around.
Ellison.
Ellison. This is a video that has surfaced of her being interviewed. And surely you can tell from what she has to say here. She knows a lot about financial markets and how they work. Give a listen to this.
Yeah, absolutely. Could pull it off without my math degree. Use very little math. Use a lot of like elementary school math. Being comfortable with risk is very important. We tend not to have things like stop losses. I think those aren't necessarily great risk management tool. Trying to think of a good example of a trade where I've lost a ton of money. Well, I don't know. I don't want to go into specifics too much about what?
Stopgaps. I mean, nobody wants stop loss. What? That. What? Seriously, You know what? I want to ask you this, Joel.
Ask me this.
When I first heard Alameda research. To me, that sounds like a name that's been around for a long time. Like, I didn't even go in and dive in, research into it, because I'm thinking that thing's been around 20 plus years. It's Alameda Research. Yeah, that's something about that was ringing a bell in my brain that just sounds like it's been around forever. I didn't know that it was created in 2017. I thought that thing's been around since the 1990s in my brain somehow.
In that brain of yours. Well, you got to see this. So Sam Bankman-fried has been tweeting. First of all, he came on to to Twitter, let's see, a few days ago. And he said here that before he said that they're filed for bankruptcy. He basically said he screwed up. Like if he had a lawyer out there, I don't know what they were telling him, but he's apologizing. He's basically incriminating himself.
Why is he said, I fucked up.
Twice, the dude's going to jail, but he has to. I don't I just don't see a way around it. But look, look at these tweets that have been coming out, starting with this 115 hours ago.
Right. Spelling. What happened?
Yeah, he's spelling. Spelling. He's spelling. What happened? He just. He tweets us. This is last night. Just what? And then a couple hours later, just the letter H and just a couple of hours ago today, like he let his sleep. Slept on that all night. Now it's h a p p e like why is what? What game Like what this guy posted right here. This is w t f what is the insanity of what we're seeing play out
in front of us in real time? Billions of dollars lost, tanking the crypto market, killing trust for so many people in cryptocurrency when obviously we and many others have warned against centralized exchanges for so long. This shouldn't be a surprise that it's come to this. But the drama that we're seeing here is surprising.
It could be more nefarious than that. This could literally be set up to eventually take the crypto fall to kind of help usher in cbdcs. Right. When you look at the whole ecosystem of this and when you tap in and you can kind of see how what was going on with the funding and then SBF ends up investing $40 million and the second largest donor into Joe Biden's campaign. Originally, there's some money laundering stuff that's going on that we don't even fully understand.
Which you won't hear about on the news, gang, if you're watching CNN, if you're watching MSP, MSNBC, if you're watching CNBC, if you.
Have MSNBC to do.
That, if you're reading The New York Times or the whatever the Los Angeles or Chicago Tribune or any of those papers, this is a great time to question if you're being duped, if you're not really hearing the news, because the news is out there and this is the biggest scandal since Enron, without a doubt the biggest financial
scandal in America since Enron. And if you're not hearing about it, if you're just hearing how bad crypto is and FTX is crumbled, if you're not hearing the flow of money where they can track where the money came from and where it went, then you know, you're being lied to. And that's going to be a real hard pill to swallow for some of you that think that you're trusting the news networks and sources that you rely on.
Yeah, Well, I mean, when you start diving into deeply and you start seeing the connections between Gary Gensler of the SEC and his parents, SBF parents, how things are sort of tied in. SBF was working with the SEC and Gary Gensler to write crypto regulation, right? And so when you're tying all that stuff together and then you and then they're still talking about going forward with the stuff that SBF was recommending. And I look at that and I say, Wow. How can this be so corrupted
like it's people? Because PR man lets people.
This is the link to this. And everything else we're talking about is in the show notes at bad co dot i n forward slash 649. This is the tweet that kind of kicked it all off from sees that you can take a look at you know I mentioned that Ben Armstrong bit boy Crypto's been doing a lot of work and was his work has turned up is who the real villain is in all of this. It
is the legal counsel for FTC's Dan Freedberg. And there is a story that's linked on this guy's Facebook post that you're going to have a hard time finding the evidence that this guy is it because all of a sudden the very existence of him is being scrubbed from the Internet in real time? People are having to screenshot bios, social pages that are being taken down, posts that are disappearing, references on websites to this guy, all disappearing. Why? Why
would that happen? Well, apparently Sam Bankman-fried is, according to this theory, the fall guy and Dan Freedberg may be the one who was responsible for what just took place.
And I'm and imagine being so well respected in the space like you're literally having conferences and you're having people like Bill Clinton coming in, speaking at your conference. Right. With Tom Brady and Joseph Obama.
I did not I did not buy any of that FTX. I did not get any donations for I did I did have sexual intercourse with that woman, though. I did.
It's just it's just when you tie everything together, you can see that there is a big, big problem with all of this. And when you hear these folks talk and then, you know, they have no liquidity and then you you go through the whole system and you're going, wow, this thing right here, I like this damn free beer guy. Nobody's really talking about this guy. And for somebody to be able who is powerful enough to scrub someone from the Internet, not only from the Internet, but from archives
and the Wayback Machine. Right. We do know. I know I read this Taylor Lawrence, who is a I guess a Washington Post or New York Times journalist, her uncle runs the Wayback Machine. And so any time that she wants to get anything scrubbed, she just talks to her uncle and he scrubs all that stuff. So you don't know that, you know, one of these prolific quote unquote, journalists comes from a very, very wealthy family. Well, this dude right here, Dan Friedberg, he is basically getting stuff
wiped out somehow. And this guy right here, you never see this guy.
He's got he's got some super epic Goo-GONE and that he even sprays it on the Internet and everything. Wow. Disappears crazy. So this is a rabbit hole. Definitely worth going down. And congratulations to Bitboy for for uncovering. Also, Mario Nawfal, who's a friend of the show, was on this show a few months ago. He has been doing these Twitter spaces round tables almost daily. And he's grown this thing. You and I have both been on them as guests before speakers. He's grown it from thousands to
tens of thousands of people. And now he's doing these marathon sessions where he is having people come on from exchanges. He's inviting exchange CEOs to come on and be transparent about their funds and in their holdings. Elon Musk even popped in to and said something about Dogecoin going to the moon, which of course pumped doge. And I stand by the theory that he will be integrating Dogecoin for payments on Twitter before Bitcoin is integrated. Probably a mistake, but I think he's going to do it.
I think for these exchanges to regain trust, they have to do some sort of proof of visibility into their liquidity. Right? Because you can't have this fractional reserve crypto going on. You have to have insights into that. And I think the best ones and now my friend DeMar Boot, who runs hacking out of Ukraine, has been talking about this, saying, Hey, we got to have proof of visibility into the assets of these people and we should know exactly what is
in the reserves at any time. There should not be any arbitrage going on where they're actually faking the amounts that they have and then getting the rug pulled off. It's crazy.
Well, and what we have happening now is that other exchanges are being, you know, saying, hey, what's your what's your deal? So tether Circle and Coinbase say they have zero exposure to FTX and Alameda. We don't necessarily have the proof of that. That's what they're saying, that there is no exposure. Which exchanges do have exposure? So the ones that are being rumored out there to have exposure are crypto.com crypto dot coms denying it. Kucoin haven't heard
anything from Kucoin about it. They have come out and said the holdings that they have, but they could leave some out. They do say that we have this much bitcoin, this much ethereum blah blah blah, this much cases. You've got Binance saying that they're not exposed anymore, you've got gate Dot IO is a name that's being put on the table and there's a.
And that's that's an interesting point right there. I want to, I want to touch base on this Crypto.com their their token is tanking as we speak. It's down 40 something percent this week. But the CEO, Chris, I don't know of his last name. It's a weird last name, but they accidentally sent $400 million to the wrong address. They sent it to gate.io gate dot I o had the ethics to send it back to them. But when the CEO is accidentally or whoever is doing that's actually selling $400 million,
and even if they didn't get that back like. My, my, my. Yeah. Money off of exchanges.
Real interesting. So Solana is now down to $14. And this story right here says that I guess this just happened, right? It would have happened. The story was from November 9th. Here it is, the 14th. Nearly 1 billion of Solana said to be unstaked. That's a lot of supply that that is being un taked.
And those if you look at the the pie chart of who owns Solana, the community owns like a small amount. A lot of it is the team, the advisors, the founders, those types of people, and then the people who early bought in. Right. And so Solana is so tied to FTX that I don't know if Solana is going to be able to make it through the crypto winter. And that's that's just me. Just go on now. How in the hell is it You got $1,000,000,000 set to be on state? Well, guess what? Last week that would have
been two, three, 5 billion. The how much would it have been back when it was $220 a token.
This is a developing story, gang. All of this is developing. The contagion of what's happened with FTX is still spreading. It is like a virus and we don't know everything that it's going to impact. But I tell you this, what this is proven and demonstrated. Is that centralized exchanges, as Bitcoin purists have said for some time. A really bad idea. There are banks, 2.0 banks in their current
form are a bad idea. And centralized exchanges are basically saying, Hey, let's take this crypto concept and let's do two to crypto what we've did to fiat currency. And it's a good thing that this is happening when it is like it's time for this shenanigans to stop. Decentralized exchanges are the way to go. And I'm afraid what's going to happen as a result of this, Travis, is the regulation that they're going to want to implement is not going to affect the it's not going to be about the
centralized exchanges. They're going after decentralization because then they don't have control of the money. And they're going to bring about these central bank digital currencies, currency.
That's the whole point. That's the whole point of this whole thing. Like, I don't think that FTX was prepared to collapse yet. I in my mind, I don't it doesn't seem like, you know, all it took was a couple of tweets might buy all that one release of coindesk and then CZ tweeting about it and then boom. I don't think they were ready to pull their own rug. They were not prepared for this. So especially how how close SBF is with Gensler and how they're working together
to create the crypto regulation. So it seems to me that FTX was primed and set up to be the de facto exchange, and it collapsed before they were quite ready. And so I think they've been scrambling a little bit. They don't necessarily know what to do. And I would say, you know, I know Sam Bankman-fried is not listening to this because I'm sure that he's freaking out because of people. How do you lose that much respect and appreciation like that?
Like he's he canceled himself, but it's like there's so much going on to this behind the scenes that I think there's some nefarious players aside from that Dan Friedberg guy or whatever. Who's who's who's pumping him up. And when we tie it all together later on, we'll we'll kind of share that.
So, you know, you said that he is probably freaking out. Look at all of the investments that SBF had here. This is actually on a Sir Lord Travis's LinkedIn. You can go take a close look at all of these organizations that had exposure investments.
And now this show down. Yeah, yeah. Scroll down here and then there's another one right there. And there's the other one right there. So, like, all of that is I've gone in and here's how they were all sort of connected. And what I've read is 134 companies that, that, that SBF and the group has in Alameda and FDX has invested in or part of is now filing for bankruptcy 134 of these right now including Blockfi. We have
money on that. That sucks. So there's a whole lot of stuff that's going on that that is still yet to be revealed. And so man.
But, you know, you're saying that he doesn't care. Here's what's really interesting. And I'm looking for the link to find this, but apparently here we go. I found it. Sam has been playing League of Legends like this is happening. This is now. He was caught in a game. While all of this is going on. He's playing video games, and in between it all, he's tweeting.
Well, no worse than that. He was playing League of Legends when he had that investor meeting with Sequoia Capital.
And they gave him that. They gave him money. Like what?
Yeah. Just not only this. Not only this, Joel. They gave them money, but the World Economic Forum was talking about how great FTX is as an exchange. To me, that's the huge red flag they've since deleted that Sequoia Capital was talking about. What a great altruistic, amazing person SBF is and FTC's, and they've deleted that from their websites. So they're trying to clean up this stuff. Dan Freedberg
is being deleted from the Internet. So there are some powerful people at work behind this to probably try to bring down crypto as much as they can because they want to bring in, as Joel said, those central bank digital currencies. That is the end goal. How do you get there? You kill crypto as much as you can. You ruin the trust for crypto and then you usher in the solution. When that happens, create a problem. Yep.
Wait for the reaction. Offer the solution that happens. Problem. Reaction. Solution. It happens all the time with these government players. Look what's.
Happening here. Look who they're bringing in to to resolve the problem. That is left by Sam Bankman-fried, a Wall Street turnaround titan. John Jay Ray. The third is taking over and is going to guide the company through the Chapter 11 process. And who's this guy? Trevor?
Dude, when I saw this, I said, okay, yeah, there's clearly some shenanigans going on because the dude, this John, John, Jay, Ray, the third, he became the CEO of Enron after Enron got caught with their hand in the cookie jar. Right. And then it collapsed. This dude was the dude who wrote it down to the ashes. Who'd they bring on? John? Jay Ray, the third to become CEO of FDX, who
is connected to this guy to bring him in? And why would he even be willing to do it if this was not a sort of deep state operation in some way, Joel? There's no there's no other reason for this to happen. Also, the other piece of news is, you know, who's been following around SBF for the last six months.
Who's that?
Ah, the the dude who wrote The Big Short. Michael Lewis has been following around SBF for the last six months, and he's going to write a book about this. He just got his finale. He just got his finishing final chapter of this thing. Well, it's.
Not it's not over. I mean, because there's still a lot more to come, like what's going to happen to Sam and to Dan and the others that are involved?
Probably nothing. Probably nothing. If there's if they're one of the largest donors to the Democrat Party, probably nothing will happen to them. If so, it'll be a little baby slap on the hand. It won't be anything like Ross Ulbrich , the creator of Silk Road, is sitting in there for life. Right. Anything like that? It's going to be, oh, probably a monetary fine of some sort. Just like what happened in the global crash of 2008. How many of those Wall Street executives went to jail? Zero.
Are you awake? Are you awake, folks?
Joel? Joel? Joel. Crypto has nothing to do with politics. Remember people telling us to tune in here about politics? Tune in to hear about crypto. Hey, assholes. Guess what? It is actually tied together intrinsically at the hip.
Did you just call our listeners assholes?
The ones who were bitching about us? Talking about politics are assholes. They don't understand what's going on. Yeah. No, they think a little bit.
They don't know. You're right. You're right. And it turns some people off. But you know what? There's things happening in the world that are a serious turnoff. And your freedom, our freedom, our liberties are at stake. And Bitcoin does fix this. It really does. There are some diehards that say there's better bitcoins out there. Some say ADA is a better bitcoin. Some say ICP is a better chain and those are up for debate. I'm not going to be a Bitcoin purist, but I am going to say
there are definitely shenanigans afoot and we're here. We're going to keep covering it. We've got some great interviews coming your way that are all going to be relevant to the times. We need to get G. Edward Griffin back on the show.
Yeah, I would. I would say Griffey.
I call him Griffey when he comes back.
You can call him whatever, you little gruff. He comes back. But I want to touch base on this because this is something that's a total conspiracy theory. And there's a Twitter user by the name of at delete underscore shit coin. He was the founder of Makerdao, Right. This guy basically called out CIA and Mossad and said, whoa, a pedophile elite is running some kind of sex trafficking blackmail ring
out of Puerto Rico on the Caribbean islands. They're going to frame me with a laptop plant and blah, blah, blah. They will torture me to death. And guess what? He's dead. He's dead. Like the next day. And. And and then. So they're saying that there's potentially some tie ins with this, especially if you look at the Alameda Research logo. That logo looks very suspicious to the boy lover pedophile symbol. And then the logo. That's an SPF SBF Twitter profile
looks very similar to the girl lover pedo symbol. You can actually go and research those on your own. I'm not saying any of that's true. I'm not saying anything's connected other than that dude's dead. Right. But if that's tied to FTX and SBF and all this stuff's going on and then the money laundering with Ukraine and then so we've seen about $100 billion to Ukraine. Right. And then Ukraine was investing in the attacks. And then somehow SBF and FTX was donating that back to PACs and
to Democrat candidates. And he's been doing that since 2020. And so I don't know how that's all related or if there's any relation on that at all. If I die, I did not kill myself. I am not suicidal. No, it's weird. I'm just reporting what people are talking about and take it for what you will.
Apparently, it's starting to get some coverage. New York Post Cryptocurrency Billionaire Broke the Bank for Dems. Where's Gensler? Don't know. Gensler will not do any interviews that have anything but softball questions. He won't. He won't answer hard questions. I mean, look at that face. Mm hmm. That facing.
Man. He's the bank, man. How great is it, Sam? Bank, man. Like the bank man collapsed. Oh, my God. Are you serious? Oh, man.
So this is here. Here's the chart right here. Here you go. This is the one that I was looking for. U.S. tax dollars at work. I'm going to put this front in center so everybody can see it. So Sam Bankman-fried donates money to the Democrat Party. Lots of money, millions of dollars to the party, to PACs, to candidates, the the PACs and candidates. The party then back senile. Biden, who gives our tax dollars in the form of military humanitarian aid, almost.
$100 billion, not even including the billions of weapons sent.
To Ukraine. And then Ukraine uses our aid to partner with FTX .
Now, that's just that. Right? There is just a meme. That's just a picture. But go down the rabbit hole on your own and you're going to be able to find your read our show notes. You're going to be able to find all the things that we've been talking about. This is not over by any stretch of the imagination. Joel thinks we're going to maybe continue to go down. Are we going to see the bottom soon? I don't know. We're sitting at about, what, 870 billion right now. It
was it was like almost 1.2 trillion. And now three $400 billion have come off the market cap like that. So what's next?
You want to see this? This is funny. Uber has no cars. Airbnb has no real estate, FTX has no crypto. This is the new economy. So, yes, I referenced this in the beginning of the show and let me go ahead and follow through on my thoughts again. So not a financial advisor. Neither one of us our have been ever will be. These are just our opinions and our observations. And this is my observation. After talking to a number of people who I consider to be smart people, I
don't feel like the bottom is in yet. I do not feel that right now we're at the anger stage. Maybe, maybe Trav. Can you find a link to that? The chart that shows the emotions of investors? Because at the very bottom of that is despair. And yes, there's a lot of people right now that have lost a lot of money and they're despairing personally. But as a market,
the market the crypto market is not fully despairing. I think that happens when you have enough of the population saying, I never want to hear the word crypto again because they don't see a path back for that right now. I don't think we're there. I think that there is there is plenty of room for downside. Couple that with
two things. And the part of this I got from speaking with Christina and some of my friends local here in in Puerto Rico, December is traditionally a tax harvesting month, right? There was a sell off in December because if you need if you need to do some losses, this is the time to do it right, because you got to pay your taxes. But. The Fed has printed money like crazy the past couple of years and the stock market is propped up. Real estate has been propped up. Inflation
is crazy right now. And the conventional wisdom says this is got to fall down at some point. And when the stock market takes a massive fall, and I believe it will. Crypto is not yet decoupled. Bitcoin does not decouple from the overall markets when the markets fall. People sell all of their holdings, right? Doesn't matter what they're holding. The only thing that I've seen not fall with the markets are precious metals. And so that's why I think
we've not seen the bottom. And what was once predicted, Travis, that we could see Bitcoin down around four or 5000 again, that I thought never that's never going to happen. I'm beginning to think that it could touch that bottom again before shooting up. Could be totally wrong. I don't know. Jim Cramer says this is the bottom. And traditionally, that is a signal to do the opposite of what he says because he's just a paid shill on on television. I don't know. What do you think?
Well, I would say this is that the Fibonaccis would say that 14 is going to be the absolute low. That's what the Benarty says. But I've also said that the collapse that we could potentially see soon could be historic. And if it does happen where Fiat fails and they start ushering that cbdcs and the economy is going to sort of collapse, then crypto is going to collapse right along with it because people are going to be freaking out.
So is that going to happen? We don't know. But I did find that that chart for you put it in the show notes there for you, Joel, if you want to pull that up.
Yeah, I want to go ahead. And I found one as well. It's probably the same thing. Let me go ahead and do a screen share for those of you that have turned on to now realize that we have a video version of this show as well. You can find it on YouTube as well.
But we prefer you listen on the podcast because we like the views and the listens are not views on the podcast, but you know what I'm saying?
So, you know, here it is, the stealth phase awareness, and then you get your bull trap. Fear, capitulation despairs way down here.
So we're in despair now, is it?
Well, I don't I'm saying I don't think so. I don't think we're in despair yet. I think we're getting close to to despair.
Well, I would say people are selling. A lot of people are selling. They're getting rid of their cryptos. Right. However, as as faith begins to as it gets to stabilize, as long as no other big projects fail and crypto dot com fails, crypto dot com. Well, like if that fails, we are we're going to be in for a long, dark cold.
So a lot of people would say that we are that we could be in the beginning of despair and then to desperation and desperation as I'll never touch shares ever again. Right. So capitulation takes place, you know, here during the beginning of the despair cycle and then is when we really hit the bottom. Now, I don't know, could I be completely wrong on this? Absolutely. Could be. Have no idea. I'm just you did.
Say an interesting point, though, Joel, about how December is naturally the time when people sell off. Right. And then you also have January, which is I think in February is the Chinese New Year. So then they're typically, you know, not doing work. And so and then we've also seen that the bull runs typically end in December, early January, from what we've seen in the past. Here we are at the end of this other one. I don't know. To be determined. We're going to keep talking about this
and our next episode will be on Wednesday. And we will talk about what we know on Wednesday and maybe talk about some other news that's no longer just FDX, but we're going to if there's any new parts of the saga as it continues, we'll share that as well.
Oh, the other interview we've got coming up is with Alex Cody Foster. He is the writer that wrote that that track with McAfee. If you've seen the the video on Netflix and Netflix special yet, this is going to be a real fascinating interview. Lots of stuff coming up here soon, I believe. We've also got Brendan Eich from Brave is going to be coming on the show shortly. Nfts coming your way. A lot of you have signed up for the bad crypto nifty club over the past
couple of weeks. If you have not yet received your bad crypto nifty club NFT, it's something like $2 and it's only $2 so that bots don't take them for free. Go to bad crypto dot Uncut dot FM, it's on Polygon Polygon so there's virtually no gas. Pick up the membership card. It is the spinny NFT of us and we've got a free drop that's coming out and maybe we'll start doing those even more often now that we've got more members in there.
Yeah, we've got more members and this is a fun one I got. I'm already kind of piecing together either it's the show card for this one or it's an NFT that we give away with the fraud X, It's almost this. You just name a fraud act Sandbagging a fraud scam, bank man fraud. I don't know. There's all kinds of things you can call him. I like to call him bit.
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