SBF Finally Admits to FRAUD (Caroline is SCARED)! ūüö®

SBF Finally Admits to FRAUD (Caroline is SCARED)! ūüö®

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 Sam bankman freed the 
CEO of the now bankrupt FTX crypto exchange has   Been repeating for weeks that he was unaware 
that FTX was co-mingling user funds 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 involved 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 Alameda what is your answer Foreign Use of customer funds He was unaware that FTX 
customer funds were being stolen despite ftx's   Own terms of service all of that user money is now 
gone to be clear okay next please go on Stanley I   Got a hundred dollar check from my grandma well 
that's fantastic a really smart decision young   Man stand it's gone what's up gun the money in 
your account it didn't do too well it's gone   What do you mean I have a hundred 
dollars not anymore you don't poof   FTX users have a little hope of ever getting 
their crypto back yet the CEO of the company   SPF has seemingly been on a press tour making 
sure that you know the just like FTX users   He's also looking for the one responsible for 
the FTX fraud and the FTX collapse to refresh   Your memory provide you with the full story and 
give you context for the clips I'm about to show   You this is SPF at the New York Times deal book 
Summit with CNBC host Andrew Sorkin Sam is asked   The direct question and he answers at the end it 
appears FTX was co-mingling user funds were you   Aware of that the terms of service for FTX it 
says None of the digital assets in your account   Are the property of or shell or maybe loan two FTX 
trading FTX trading does not represent or treat   Digital assets and users accounts as belonging 
to FTX Trading so how is it possible that Alameda   Had this loan of such a large size so 
there's that piece from the terms of service   Um but there were a number of other parts 
of the terms as there's a number of other   Parts of the platform on top of that there is the 
borrow lending facility where users were lending   Billions of dollars of assets to each other um 
you know collateralized by assets on the exchange   Um you had uh and you got obviously Futures 
contracts where there are leveraged positions   On now of course all of this um it's meant to be 
the case that these are positions where FTX could   If it needed to Margin Call those positions and 
close them down in times such that it would cover   All of those uh you know all those shorts all 
those liabilities obviously that wasn't the case   Here and that's a massive failure of oversight of 
risk management um and of uh you know diffusion   Of responsibility from from myself running FTX but 
just make this very straight was there commingling   Of funds that's what it appears like it appears 
like there's a bit a genuine commingling of the  

Funds that are of FTX customers that were not 
supposed to be commingled with your separate firm   I ain't knowingly commingle funds well it 
appears Sam bankman freed has been doing so   Many interviews lately in so many spaces and 
putting himself on record to free questions   So much just yesterday he might have finally 
admitted to co-mingling funds and user fraud   By the way it seems Caroline Ellison the CEO of 
Alameda ftx's sister company she's been talking   As well I think like every week or so uh something 
like weirder than the previous week would happen   For me A lot of it was just about sort of 
uh yeah readjusting my expectations and uh   Being open to whatever happened please watch this 
video if you haven't already I'll link this below   It seems like Carolyn Ellison has been talking to 
the FBI and telling her story anyways SBF finally   Admitting to fraud let me show you and you tell me 
great journalism by coffeezilla Sam bankman freed   Just yesterday was asked by coffeezilla in spaces 
if it's true that you didn't invest FTX user   Assets not even in the treasuries why do those FTX 
user assets no longer exist if it's true that you   Didn't invest client assets not even in treasuries 
as you said via a now deleted tweet why do those   Client assets no longer exist I'm just taking a 
stab at this because I don't have the data but   My my best guess is the following is that there 
were a lot of those assets remaining we processed   Something like you know five or six billion 
dollars I think of withdrawals over the over   The few days prior to our or I guess the few days 
you know during the crash and there are still a   Few billion dollars of those remaining I think in 
the estate and so you put those together you have   Many billions of dollars of those assets but I 
think and and so that's part of the answer is that   Um there were a large number of actual assets 
there um I I think there's one follow-up question   You probably still have there which is well how 
about people who didn't withdraw and were also   In that bucket and part of the answer is well 
there still do exist some number of billions of   Dollars of assets so Sam bankman freed claims many 
FTX users were able to withdraw their assets and   Those who didn't withdraw still have their assets 
as part of FTX this is where it gets interesting   Again good job to coffeezilla I've been following 
this guy for a long time this is one of the ways   I stay up to date on everything crypto anyways 
coffee Zilla then asks Sam if Sam can guarantee   That FTX user assets are backed one to one Sam 
hesitates and then starts to talk about a news   Story listen to the end of this clip Sam bankman 
freed admits FTX user money was fungible they paid   Out everybody from seemingly the same fungible 
wallet I can't believe he admitted to co-mingling   Like this no is there one-to-one assets because 
that's the whole thing we're talking about a   Separation of fun funds so those funds should be 
a completely different in a different place in a   Different wallet than everybody else what you 
talked about servicing billions of dollars of   Withdrawals has nothing to do with those specific 
digital assets because that's just first come   First serve whoever pulled out first we're talking 
about people who never agreed to have their funds  

Loaned out who never agreed to have their funds 
put on margin they should have according to your   Terms of service one-to-one backing it should 
all still be in some bucket somewhere and are   You confident today as the CEO of FTX this has 
nothing to do with Alameda are you confident today   To say that you those are absolutely real and they 
exist and they're present people are backed one to   One on client digital assets so I think and again 
this is I'm just taking a stab here but I think   What happened is that if you look at especially 
a lot of the withdrawals that happened those   Withdrawals were not necessarily only coming from 
people who never used margin trading or futures   Or staking or anything else those weren't just 
withdrawals from people who were um uh who were   Keeping one-to-one backed or or or were you know 
were sort of you know just keeping them as pure   Spot balances and it was Omnibus wallets you 
know between the various categories and so I   Think that the answer to your question is that a 
number of those assets were withdrawn by people   Who had balances on the exchange potentially in 
the few days prior to the collapse um and uh and   You know if you wanted to think about it this way 
it could be that you know that happened and then   Um you know when when the collapse sort of 
completed I the um that that effectively meant   That there was you know if you wanted to put it 
this way like uh fungibility created during those   Withdrawals between assets uh for people who had 
and had not uh been using so did you hear what   SPF just admitted FTX user money was fungible that 
means that there was not a separation of funds if   There is fungibility between two different FTX 
buckets of money that means that there are no   Separate buckets there's just one bucket meaning 
FTX users who didn't agree to lend their money   To Alameda or lend their money to margin Traders 
were forced to take on that risk anyways doesn't   SBF see that as defrauding FTX customers 
listen to what he says I can take the money   That someone who didn't sign up to those same 
risky terms didn't agree to isn't that fraud so I'm specifically talking about what happened 
in the days immediately um during and following   The crash in that you know three or say 
so day period um and during that period   Um I think we may have allowed uh you know 
just generalized withdrawals I think that was   Um you know if you're saying that we should have 
held up withdrawals for everyone who had an open   Futures position um you know for clawback 
potential or something like that uh I don't   Know maybe that would have been the right thing 
to do I hear where you're coming from on that   Um I felt you know at the time um that you know 
we wanted to treat customers equally it was an   Incredible but they had agreed to different things 
so you can't treat them equally and now that Sam   Admitted that they were co-mingling funds for 
the withdrawals he starts getting a little bit   Defensive SBF accuses coffeezilla of grandstanding 
monopolizing the time just listen to the clip why   Do you think he acts like this I mean it's like 
this is the whole problem of the story of FTX and   Alameda is all the funds were being co-mingled 
isn't this just another story of co-mingling  

Funds except this is now FTX which you can't pass 
the blame to Alameda anymore this is your company   Your funds that you are treating all the clients 
the same when they clearly signed up to different   Terms of service so I just want to respond to that 
and please I completely respect your question but   You have monopolized all of these discussions 
coffee Zilla you need to let others speak and   You need to respond to what I'm saying and not 
grandstand as much here I completely understand   Where you're coming from but the to answer your 
question I didn't make a decision there I just   We process withdrawals as we normally do until 
it became clear we couldn't anymore at which   Point we shut them off and it was the case 
that like at that point um there was a big   Liquidity hole that's what happened if you want to 
judge that process and think that like we should   Have been spending those days frantically 
trying to code up a new withdrawal process   Um I disagree with you but I understand where 
you're coming from okay but it's not about   Coding up a new withdrawal process Sam it's about 
treating FTX clients the way you told them they'd   Be treated so that's even worse if this is how 
FTX always processed withdrawals then the FTX   Terms of service have been a lie from the very 
beginning the withdrawals weren't segregated   As promised they literally were in a huge pot of 
money first come first serve SBF cond everyone in   Addition SBF just can't keep his story straight 
it seems because in another spaces last night   SBF admitted that when customers were buying and 
selling and trading Bitcoin on FTX they weren't   Actually buying or trading real Bitcoin it was 
just a fake entry into their account at FTX any   Media besides altcoin daily want to cover this 
because that makes sense as to why there were no   More Bitcoin to withdraw where customers like 
like that I know had Bitcoin balances because   Those Bitcoin actually didn't exist because it 
was just notional you were just letting us buy   Notional tokens that didn't actually really exist 
uh yeah or another way of phrasing that because   Otherwise you would have had to have the usdc 
somewhere right yeah I yeah I I believe that what   You're saying is in fact part of what happened 
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 the   Biggest Bitcoin conference in the world use code 
altcoin daily 10 off see there post this video on   Social media get this story out to as many people 
as possible subscribe to altcoin daily for daily   Crypto coverage watch this video of Caroline 
Ellison if you haven't and I'll see you tomorrow

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