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
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