Sam Bankman Fried was arrested. There was a hearing with new details about the case – it was weird.
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0:00 START HERE
0:30 the biggest fraud of all time
2:02 this hearing was a circus
4:12 now it all makes sense
5:12 Sam’s testimony (I f*cked up)
6:38 the bright side (my take)
Hey guys welcome back so I didn't plan To cover this Sam backman free story at All okay it's not really the type of Content that I get into on this channel I don't have any personal drama with FTX I never used them and my only contact With them came last year when I was Turning down their repeated attempts to Sponsor this channel but the last 48 Hours have been insane first with SBF Getting arrested in the Bahamas followed By this Congressional hearing that I Want to focus on today because it had Some amazing drama now if you've been Following the SPF Scandal until now you May have come to the realization that We're dealing with maybe the biggest Financial fraud of all time a man who Single-handedly stole eight billion Dollars which by the way I checked it's Actually larger than the GDP of about 50 Countries and this is someone who also Sent the entire crypto space into a Potential death spiral okay a contagion That threatened to end the entire show And it's one that we're still dealing With today okay it's not like you know We're out of the woods yet so we know That this guy is rotten but you may have Also seen that the media has been pretty Soft on him right just writing these Puff pieces on him and other FTX Officials in a way that started to look Kind of suspicious and then more
Recently you have SPF going on podcast After podcast spreading his lies even Continuing to play League of Legends on Twitter spaces pretty much until the Moment that he got arrested and with all This you may have thought to yourself This Guy's gonna get away with it isn't He and honestly I did too but that Completely changed Monday when SPF was Arrested and then charged with the Highest Financial crimes in all the land Specifically conspiracy to commit wire Fraud on customers wire fraud and Customers conspiracy to commit wire Fraud on lenders wire fraud on lenders Conspiracy to commit Commodities fraud Securities fraud money laundering and Conspiracy to the fraud the United States and violate campaign Finance laws So it's looking pretty bad for our boy Sammy and this all culminated yesterday When a U.S House committee held a Hearing where prosecutors went over all The latest details in the case and There's a lot to unpack here but right Off the bat if you just watch a few Minutes of this hearing what jumps right Out and hits you in the face is just how Much of a circus clown show the U.S Congress is especially when it comes to Topics like Tech or crypto and here are Just a few Snippets of what you may have Missed now from the outside Crypto just looks like a non-fungible
Token An electronic pet rock for the 21st Century so let's say I have doji coin or I don't even know how you say it but I Have 10 doji coin which a year ago is a Doggy coin or doji Doge Dogecoin all Right Doge I have 10 doge coins I wonder If you would support A resolution that I've been thinking About introducing Um changing the name of cryptocurrency To a creepy dope Currency Um I'm going to discuss this with my Colleagues I think it's It's an appropriate name I just wanted To know whether you would support Changing it to creepy dough Now it was obvious that some members Were just using this case as another Opportunity to bash crypto even though This had more to do with just Old-fashioned fraud than anything Related to the blockchain but in general The one thing they were trying to figure Out was how could this all happen is This something that could have been Avoided or are we just dealing with a Group of financial Wizards that put Together this complex scheme that was Just impossible to detect and well the Revelation was that there were no Wizards and FTX was even more of a sham
Than we realized I mean we knew it was Bad but this was another level it turns Out that hiding behind the facade of Being these incredibly Savvy prodigies It was closer to what you would expect From the treasurer of a college Fraternity you had decisions being made Via slack and other chat rooms the Balance sheet was organized in QuickBooks which is just very basic Software for people who don't want to Shell out a few hundred dollars for an Accountant and in general the new Bankruptcy CEO John Ray said that they Were dealing with literally a paperless Bank bankruptcy and that this was a Small group of grossly inexperienced and Unsophisticated individuals you know I Remember that prior to this whole Scandal there were these photos of Sam That went viral just showing him Completely disheveled right his hair was Messy his shoelaces looked like they had Been tied by a three-year-old shirt Untucked and people would look at that And go wow this is some genius he's a Billionaire that's just so involved with His work so in his head with all these 40 chess moves that he's doing that he Can't even tie his shoelaces right he Can't even get out of bed because of his Colossal brain and now we're looking at All these red flags with a completely Different reaction right it reminds me
Of that scene in Step Brothers where They go into a job interview with Matching tuxedos for like a warehouse Job and the interviewers like I kind of Love these tuxedos I love how you guys Are taking this ironic approach to the Interview then they start acting weird Throughout the entire interview and at The end Seth Rogen's like okay actually Now the tuxedos seem kind of up I Mean that's Sam in real life right it Turned out that ftx's internal structure Were as messy as his shoelaces okay but Then we get to the pieste resistance the Cherry on top of this whole Carnival Show which was Sam's written testimony That he had prepared prior to being Arrested and SPF the poet that he is Starts with three magic words I Up but really most of the testimony Reads like the opposite okay it's just Like playing this victim and blaming any Other party that he can find he blamed CZ the CEO of binance for starting a run On the bank which by the way shouldn't Have even been a problem if all customer Deposits were in custody in the first Place he then blames the chapter 11 team For being slow in responding to Inquiries and he even complains that the Password to my LinkedIn account still Hasn't been returned he then blamed his Legal team for pressuring him into Filing for bankruptcy in the first place
And implies that they're in it for the Money and stating that they made Hundreds of millions of dollars in fees During the Enron bankruptcy and Generally he just paints himself as some Someone who should be pitied okay his Net worth wasn't 20 billion he now only Has a hundred thousand he wasn't really Partying he actually didn't have a drink Until he was 21. and so on and so forth Until he closes his testimony by saying Quote I need to put on the official Congressional Record that I am and for Most of my adult life have been sad and We actually hear this victimization Again just later that day when he said That he couldn't go to jail basically Because he was a depressed vegan which Of course got denied Now ladies and Gentlemen this will probably be the last Time I cover this topic because I think Most of the major details are probably Out in the open now and what follows is Just going to be a lengthy Court battle Maybe some appeals and unless there's Some M Night Shyamalan twist still in This the conclusion will probably be That SBF goes to jail for a really long Time but what I do want to say is that Ultimately it's hard to overstate the Damage that this guy did to crypto and How much ammo he gave to everybody who Continues to just call crypto a scam and Lump everything in with him and if
You're somebody that's building in this Space this kind of Relentless negative Energy can sometimes be just too much Right and I've seen countless ogs that Have said that this was the last straw For them and they're effectively leaving Which is incredibly unfortunate but I do Think this marks the end of a chapter in Crypto's history that was mostly filled With snake oil salesmen and where the One and only use case was just pure Speculation and as a result really the Only profitable businesses in these in This world were decentralized exchanges That acted as unregulated casinos and if You survive this era congratulations That makes you officially an OG yourself And for better or worse I do think the Space is about to change dramatically First because we'll see a combination of Regulation and D5 that completely Changes the way that we interact with These centralized exchanges in the first Place and also because I think the age Of speculation is about to make way for An era of crypto consumer products where People are interacting with crypto for Reasons that go well beyond just you Know speculation and gambling all that To say that I'm optimistic we're heading Into a world where it is going to be a Lot harder for someone like SPF to Essentially lie his way to the top of The food chain effectively with a shell
Company and put himself in a position of Immense power in the space and it's also Going to be harder for people to point To a failure like SPF and say see you Know all crypto was a scam because there Are going to be all these products with Millions of customers where people are Going to be like what are you talking About right cryptos being used in all These things that are very obviously not Scams whereas today that statement that Everything is a scam is harder to refute Anyways a little hopium there at the end For you guys I'm personally incredibly Happy that I do not have to listen to SBF on Twitter spaces anymore so that's A w in my book thanks again for watching Guys and I'll catch you in the next Video
