This is really a yes or no question yep Carolyn   Ellison says you knew that FTX funds were 
being final to Alameda did you know that Uh if Alameda is borrowing the 
money that belongs to FDX depositors   That's a bright red line isn't it there 
are a lot of cases where that's actually   Explicitly part of the programs and that 
are happening here here it says that the   Digital assets may not be loaned to 
FTX Trading they can't be loaned out I This is Sam bankman freed former CEO of FTX in 
2021 FTX was one of the largest most prominent   Cryptocurrency exchanges in the world SBF was 
hailed as a super genius crypto wonderkind   Written up in Fortune the financial review 
Forbes Super Bowl ads it's a safe and easy   Way to get into crypto yeah I don't think so 
naming stadiums Steph Curry I'm thrilled to be   Announcing partnering with FTX rubbing elbows 
with policy makers and sharing private stages   With the political Elite we did a lot of things to 
try to uh to try and bolster our reputation to try   And you know help our brand but in the early hours 
of November 11 2022 it all came crashing down FTX   Halted user withdrawals the company filed for 
bankruptcy users are still not able to access   Their funds today and many have little hope of 
ever seeing their crypto assets again where is   The money who is at fault see Sam bankman freed 
would have you believe that this is all just a   Big mistake like the legend of Icarus a good 
intentioned Visionary who just flew too close   To the Sun SBF says it was his lack of experience 
and effort and if you just would have devoted more   More attention to risk management everything 
at FTX would be fine then you said one of your   Great talents in a podcast was managing risk 
that's right and that's obviously wrong well   I it's I think that there is something maybe 
even deeper wrong there which was I wasn't even   Trying like I wasn't spending any time or effort 
trying to manage risk on FTX trying like and that   That obviously that's a stunning station what 
that's a pretty stunning admission yeah I mean   It I don't know what to say like what happened 
happened honestly if I look back on myself   I think I got a little cocky I've made more 
than a little bit um and I think part of me like   You know felt like um like we made it he like 
the users who lost their funds also wants to   Find out what really happened and who really 
did it of course for those of us who have been   Following the story of SBF closely like us 
subscribe to altcoin daily WE Post one video   Every day keeping you informed on the entire 
cryptocurrency Market we know that the story   Of Sam bankman freed and FTX is a lot more like 
Bernie Madoff than he would want you or I to think   A lot of people look at you and see Bernie Madoff 
yeah I mean I don't think that's who I am at all   But I understand why they're saying that people 
lost money and people lost a lot of money and   I mean at the end of the day look there's a 
question of what happened and why and who did what  

Um what caused the Meltdown and I think 
that is reads very differently right when   You when you look at the classic Bernie 
Madoff story there was no real business   There the whole thing as I understand it I think 
was was just one one big Ponzi scheme right fgx   That was a real business Alameda the investment in 
trading arm of FTX which Sam bankman freed owned   By all accounts was siphoning off and funneling 
FTX user funds into Alameda and trading with them   Stealing customer funds trading with customer 
money trading against users Alameda losing that   Customer money by trading with leverage and 
then when FTX users needed to withdraw their   Money they couldn't because the funds they 
saw in their FTX account were never really   There in the first place it takes Sam bankman 
freed over five minutes to answer this simple   Yes or no question Watch Sam begman Freed's body 
language pay very close attention tell me what   You think below and stay until the very end of 
the clip when he is finally forced to answer yes   Or no did Sam bankman freed know that FTX 
user funds were being funneled to Alameda one   Of the reasons FDX went bankrupt is because FTX 
deposits yep were used to pay alameda's creditors   Carolyn Ellison said you knew about that is that 
true you know the best I can tell uh Alameda did   Have a big position open on FTX um that position 
uh I think was you know very over collateralized   A year ago there is a total Market collapse and 
you know specifically large correlated collapse   In its assets you know over the last month and 
to some extent over the last year that I you know   Threatened that position quite a bit and I think 
that's you know as best I understand a lot of what   Happened there I I am no cryptocurrency expert of 
no Finance actually but I don't think you answered   My question I always ask did you know that FTX 
deposits were used to pay off Alameda creditors Uh I don't know of FTX deposits being used to pay 
off Alameda creditors are you uh which creditors   Are you referring to Carolyn Ellison said that 
you all knew that these funds were used were put   Into Alameda they were the funds owned by your 
depositors so I can't speak for who knew what   You know a lot of the customers on FTX did have 
you know borrowers either you know in dollars or   Bitcoin or Euros but as you know the FTX terms of 
service tell the people who signed up none of the   Digital Assets in your account are the property 
of or shall be or maybe loaned to FTX Trading   But you're saying that happened my understanding 
is a few things happen the first is there is a   Margin trading facility on FTX by which users can 
lend out funds by which other users borrow funds   And so there are explicit cases where there is you 
know marching send where there is borrow lending   If the Alameda is borrowing the money that belongs 
to FDX depositors that's a bright red line isn't   It there are a lot of cases where that's actually 
explicitly part of the programs and that are not   Here here it says that the digital assets may not 
be loaned to FTX Trading they can't be loaned out I

There existed a bar lending facility on FTX 
and and I think that's probably covered I   Don't remember exactly where but somewhere else 
in the terms of service but they'd have to approve   Of that they're saying they didn't approve of it 
here they're saying you approved of it if you've   Rewinded to you know the beginning of FTX um where 
you know some customers were you know uh I think   In line with sort of existing relationships that 
that they've had at least in some cases wiring   Money straight to Alameda research in order to 
trade on FTX so you do know and you did know that   FDX deposits were being funneled to Alameda so 
I was vaguely aware that that was how some virus   Were being sent in the first place um didn't that 
set off alarm bells in your head so there are a   Lot of people who are involved in that process 
and look I really deeply wish that I had taken   Like a lot more responsibility for understanding 
what the details were of what was going on there   I knew that legal was involved I knew that 
other groups at the company were involved   That you know there were agreements drafted up 
but you're ultimately responsible and ultimately   Absolutely like I look I should have been on 
top of this and I feel really really bad and   Regretful that I wasn't and a lot of people got 
hurt and that that's on me I do want to move on   But this is just finally on this this is really 
a yes or no question yep Carolyn Ellison says   You knew that FTX funds were being funneled to 
Alameda did you know that I knew that there is   An open margin position there and that that 
involves no but that's all that I'm asking   If she's in court and you're in court and 
she's under oath and you're under arrest and   You're asked did you know that these funds were 
being funneled to alamedia what is your answer I did not know that there is any improper uh use 
of customer funds so is SBF making an even bigger   Mistake now doing all this press doing all these 
interviews maybe but Sam isn't behaving like a   Renegade who's ignoring the advice of his lawyers 
he's actually behaving like a world-class crisis   Management firm and legal team constructing a 
very specific and deliberate public narrative   He's not admitting to fraud he's not admitting to 
commingling deposits he's not admitting to inside   Knowledge of Alameda he is repeating the same 
claim over and over Alameda at arm's length let   The margin position grow too big and a failure of 
risk management took the firm down by the way SBF   In his continued effort to gain public sympathy 
he's also claiming he's not a billionaire anymore   In fact he says like you he lost all his money 
and now he's down to just one hundred thousand   Dollars in his bank account to my knowledge I 
have basically nothing left you know basically   Everything I had was invested in the business I 
expect I'm going to have nothing at the end of   This I ain't got a hundred thousand dollars left 
in my bank account last I checked and I I think   I have you know uh One credit card working with 
that right now earlier this summer you thought you   Had what 32 billion probably 20 but uh a whole 
lot more than I do now I can't imagine what it   Feels like to go from 20 billion dollars to a 
hundred thousand dollars yeah it's I mean it's  

Been a really it's been a really humbling fall 
in in a lot of ways do you believe him because   I wonder is SBF hiding money in private crypto 
wallets that we don't know about comment your   Thoughts below follow us on Twitter this is 
a developing story subscribe to our Channel   By the way if you're planning to attend Bitcoin 
conference 2023 let's hang out it's going to be   Epic use code altcoin daily 10 off this is 
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