The cryptocurrency market is nine years in crypto 
today is the craziest day since I bought my first   Bitcoin in 2013 this is crazier than Mount gox 
this is much crazier than three Aero capital or   The Luna debacle it's just shocking this morning 
the cryptocurrency industry woke up to one of the   Largest exchanges in the world appearing to have 
stopped processing withdrawals and then CZ the   CEO of binance the other largest cryptocurrency 
Exchange in the world shocked the crypto industry   By tweeting this this afternoon FTX asked for our 
help there is a significant liquidity crunch to   Protect users we signed a non-binding letter 
of intent intending to fully acquire   And help cover the liquidity crunch we will be 
conducting a full due diligence in the coming   Days binance buying FTX is this true can anybody 
else confirm this I mean it seems too outrageous   To to be true and then Sam bankman freed tweeted 
this hey all I have a few announcements to make   Things have come full circle and ft acts's first 
and last investor are the same we have come to an   Agreement on a strategic transaction with binance 
for our teams are working on clearing   Out withdrawal backlogs as is this will clear out 
liquidity crunches all assets will be covered one   To one this is one of the main reasons we've asked 
binance to come in it may take a bit to settle we   Apologize for that but the important thing is 
that customers are protected a huge thank you   To CZ and binance and all of our supporters this 
is a user-centric development that benefits the   Entire industry CZ has done and will continue to 
do an incredible job of building out the global   Crypto ecosystem and creating a Freer economic 
world I know there have been Rumors in media of   Conflict clicks between the two cryptocurrency 
exchanges however binance has shown time and   Time again that they are committed to a more 
decentralized global economy while working to   Improve industry relations with Regulators we are 
in the best of hands note FTX U.S and binance U.S   Two separate companies are not currently impacted 
by this FTX U.S withdrawals are and have been   Live is fully backed one to one and is operating 
normally it's interesting that just 24 hours ago   Sam bankman freed was tweeting this a competitor 
is trying to go after us with false rumors FTX   Is fine assets are fine so how did we get here 
seems like CZ had a master plan this whole time   CZ starves FTX of Revenue with zero trading fees 
on binance attracting volume from FTX CZ shoots   Headshot by publicly announcing ftt their token 
ftx's token concerns causing a bank run on FTX   And a decline in the ftt price FTX unable to 
cover hole in their balance sheet CZ acquires   FTX thanks for playing the cryptocurrency markets 
are in serious trouble my friends I'm gonna get to   That in a second before we get to that Sam bankman 
freed was once admired as the king of crypto now   Alameda and FTX are rumored to be on the brink 
of insolvency and seemingly are here is how it   All went wrong for Sam bankman freed and FTX how 
do we get here for a long time as you recall Sam   Bankman freed was idolized into space famous for 
his Arbitrage trading founding FTX Alameda hugely   Successful Investments like Solana Sama crude 
an impressive estimated net worth of 10 to 14.5  

Billion dollars at his peak in recent times FTX 
has been extremely busy leading huge fundraising   Rounds for new projects Aptos and sui are two 
of the most recent examples Sam was invincible   Despite Luna causing chaos he used the situation 
as leverage to continue an aggressive expansion   Plan bailed out block 5 for 240 million bid for 
voyager's assets considered bailing out Celsius   However in the background there were some cracks 
starting to appear eyebrows started to raise when   The CEO of Alameda suddenly resigned additionally 
just a month later FTX president Brett Harrison   Stepped down these resignations occurred just 
before it was revealed that FTX was facing some   Legal trouble in the form of Securities regulator 
probe although public sentiment was becoming more   And more negative towards Sam the dccpa draft 
Bill marked the real turning point for the   Public's perception a draft of the bill was leaked 
first online see Sam seemingly supported the bill   But despite Sam trying to play the good guy on 
Twitter there were clear red flags through the   Bill which could pose significant threats to defy 
you remember Eric Voorhees famously quizzed Sam   Bankman freed on his stance during the bankless 
interview we played you this clip that this clip   Went viral and led to continued skepticism amongst 
the crypto Community towards Sam bankman free if   That did mean that like essentially a suit front 
Hands by Americans targeting American retail had   To be licensed um I think that could be reasonable 
if the question was let's let's acknowledge that   The email protocol will be permissionless as 
a protocol yep but it was the law of the land   In America that every email front-end provider 
required kyc from its users yeah because under   The justification that we do not want people 
sending information back and forth to terrorists   Yep where would you stand on that position oh I'd 
be strongly against that position why would I be   Against it because I think that it I think it'd 
be like against freedom of speech I think it'd   Be disenfranchising a lot of people I think they 
would not trust in practice that it would do a   Good job so I agree with you on all that um I'm 
making a distinction here between for instance   Payments versus like derivatives contracts 
why why is Ave somehow different than email so   Um why is it different than email um you argued so 
well and so passionately to not block email with   Licensing and kyc I loved hearing that yep that 
filled my soul with joy such good arguments why   Does that not apply to financial transactions so 
um why does it not apply to financial transactions   Um I think there are a few 
things here so first of all The public damage for Sam was immense sentiment 
shifted as people realized his intentions may be   Different from what we all first thought this 
shift in sentiment was the precursor for what   Was to come next and a major contributor behind 
the severity of the recent thud concerns started   A bubble on Wednesday when alameda's balance sheet 
was leaked it revealed that the net equity in the   Alameda business is actually ftx's own centralized 
controlled and printed out of thin air tokens one   Of the accounts that first called out the Celsius 
collapse that same account published a report  

Titled is Alameda insolvent the report labeled 
Alameda situation as precarious to say the least   Then we saw massive 500 million plus worth of ftt 
token transferred to binance CZ confirmed that it   Was in fact binance who executed this transfer we 
got full confirmation that binance was exiting its   Ftt position yesterday when cesy announced his 
decision to liquidate any remaining ftt on their   Books CZ then fired shots at Sam stating that they 
were selling as a result of learning from Luna   Sees the indirectly referenced Sam bankmanfried's 
lobbying by claiming that he quote won't support   People who Lobby against other industry players 
behind their backs ftx's primary token ftt dumped   As a result Caroline the CEO of Alameda research 
was forced to then issue a response to cz's sale   He says if you're looking to minimize the market 
impact of your ftt sale Alameda will be happy to   Buy it all from you today at 22. in my opinion 
this response felt desperate and was somewhat   Of a red flag before FTX halted withdrawals 
today the flood surrounding FTX resulted in   Staggering outflows as people rushed to withdraw 
their funds the threat of a bank run was looming   As some people were forced to wait four hours 
to process their withdrawal today FTX appears   To have stopped processing withdrawals and then we 
heard binance has fully acquired FTX again I ask   You was this cz's plan the whole time CZ starves 
FTX of Revenue with zero trading fees on binance   Attracting volume from FTX CZ shoots headshot 
by publicly announcing ftt concerns causing a   Bank run on FTX and a decline in the ftt price 
FTX unable to cover holes in balance sheet CZ   Acquires FTX and it's pretty obvious what the 
hole was FTX lent Alameda 7 billion secured on   Their own ftt and Solana illegal as hell Sam 
bankman freed has a ton of questions to answer   For this but CZ saw the opportunity and walked 
away with everything and would not surprise me   If the purchase price for FTX was Zero CZ 
makes account holders hole solves liquidity   Crunch maybe helps Sam bankman freed avoid 
jail Sam bankman freed and Equity investors   Get practically nothing probably not the most 
popular opinion but regulations saved depositors   On FTX us were there not a CZ or other bailout 
for FTX International International depositors   Would have likely lost their deposits U.S 
deposits were fully backed one to one in   Addition same day news CZ comes out and says this 
all cryptocurrency exchanges should do Merkel tree   Proof of reserves Banks run on fractional reserves 
crypto exchanges should not binance will start to   Do proof of reserves soon for full transparency 
great to hear this is much appreciated and needed   Full transparency of centralized entities 
especially monolithic custodial exchanges is   Exactly what is needed to put crypto at a higher 
standard of quality and Trust than tradfi now   Today also besides ftt going to hell besides 
plenty of altcoins seeing heavy volatility   Bitcoin also made a new yearly low just above 17 
100. the worst might be right around the corner   Anything can happen but let me tell you why you 
should be worried contagion is here let me show   You how we are completely effed FTX accepting the 
bailout means that they effectively have a hole  

In their balance sheet sure CZ will bail out FTX 
but he's not going to bail out Alameda Alameda has   Been going out and borrowing from all the lenders 
via giving ftt as collateral CZ will probably let   It go to zero and this means the lenders are 
underwater they now own illiquid ftt and CZ is   Perfectly happy to let it go to zero the second 
biggest lenders block Phi and Genesis probably   Have a 10 billion balance sheet how much of that 
was lent to Alameda at least a few you Bill since   Alameda is not being bailed out just FTX the 
lenders of Alameda will have to absorb the   Full hit but they just got wrecked by three Arrow 
capital and the miners at this point I expect the   Lenders to go under who deposited to them we are 
going to see a credit contraction of at least 10   Billion dollars within the space expect all soul 
and Sam coins to be dumped to Oblivion by lenders   Trying to get any money back altcoin daily Army 
this is a developing story make sure you subscribe   To the channel we're gonna have so much more 
to share with you tomorrow and throughout the   Week as this is a developing story like the 
video if you got value I'll see you tomorrow

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