And the last thing that I'll say is if You look at what precipitated some of The 2008 financial crisis you saw a Number of bilateral bespoke non-reported Uh transactions happening between Financial counterparties which then got Repackaged and re-leveraged again and Again and again such that no one knew How much risk was in that system until It all fell apart until it all fell Apart Okay as of this morning Sam bank and Freed announcing hi all today I filed FTX ftxus and Alameda for voluntary Chapter 11 proceedings in the U.S I'm Really sorry again that we ended up here Hopefully things can find a way to Recover hopefully this can bring some Amount of transparency trust and Governance to them ultimately hopefully It can be better for customers now in Some bitter irony from that first clip You saw though Sam bankman freed in Congress last year talking about what Caused the 08 financial crisis with the Banks with the housing market basically What turned out to be his blueprint on What caused this crypto collapse he goes On to say this doesn't necessarily have To mean the end for the companies Meaning FTX FTX us Alameda or their Ability to provide value and funds to Their customers chiefly and can be Consistent with other routes ultimately
I'm optimistic that Mr Ray the new FTX CEO and others can help provide whatever Is best it's very funny in the most Unfunny way that yesterday literally Yesterday Sam bankman freed went on Record saying that FTX us was not Impacted and then today ftxus files for Bankruptcy it's 100 liquid every user Could fully withdraw another lie from Sam bankman fraud he finishes today by Saying this I'm going to work I'm giving Clarity on where things are in terms of User recovery ASAP I'm piecing together All the details but I was shocked to see Things unraveled the way they did Earlier this week I will soon write up a more complete Post on play-by-play but I want to make Sure that I get things right when I do The really sad part about this whole Thing is that ftx's bankruptcy is truly Just the beginning from this bankruptcy We now know the exact funds in the FTX And Alameda wallets what are their Largest Holdings that they're going to Be forced to sell as well as let's take A look at the other exchanges and what Potentially comes next And with this chapter 11 it should be Noted that the firm's sister entity Algorithmic trading firm Alameda as well As ftxus and roughly 130 Affiliated Entities will also be filing for Bankruptcy some of the few Affiliated
Companies that aren't Ledger X is not FTX digital markets as not FDX Australia FDX Express pay have not been included In this filing and now that SBF has Officially stepped down like I said it's John J Ray III who has been appointed New CEO and will work with other Independent professionals during the Proceedings the FTX group has valuable Assets that can only be effectively Administered in an organized joint Process says Ray so what assets do these Two entities have left we now know this Information from the public bankruptcy Filing and actually from this recent Filing for both FTX and Alameda Estimated assets and liabilities are Actually between 10 billion and 50 Billion dollars so that's the potential Hole they have to fill that's how much They're in debt so do the coins that They still hold come close to that Well ftx's current biggest holding Remains actually its ftt token while Alameda's largest Holdings are in USD Coin again they're seeking at least 10 Billion dollars in external funding to Fill this hole so FTX holds over 600 Million dollars in Assets in Cryptocurrencies in their public wallets A 76 decline since last week's 2.6 Billion dollar figure so of their Current 600 million they still have it Holds over 100 million of that in their
Ftt token their full list is right here We see they have over 69 million in usdt Stablecoin they have 61 million in packs Of gold 50 million and die decentralized Stablecoin and then over 40 million of Ethereum and staked ethereum as the eve Each so this is what we should expect Them to sell in these coming months in Bankruptcy court well how about Alameda On the other hand alameda's 146 million Dollar public wallet is full of stable Coin Holdings so that's better They have over 60 million dollars in Usdc and over 35 million dollars spread Over true USD tether and die of course Alameda does have old coins as well Holding over 33 million in bittorrents BTT tokens as well as 5 million dollars In state sushi uh three million dollars In stake ethereum just under 3 million Dollars in serum and 680 000 in eth here Is a screenshot of alameda's major Holdings And you want to see something outrageous Absolute disbelief this was who was in Charge of Alameda the CEO of alamina Caroline 42nd clip yeah absolutely could Pull it off without my math degree I use Very little math Um use a lot of like uh Elementary School math being comfortable with risk Is very important We tend not to have things like Stop losses I think those aren't
Necessarily great risk management tool Trying to think of a good example of a Trade where I've Lost a ton of money Um well I don't know I probably don't Want to go into specific s too much with That And just how far does this potential Contagion go Okx bitfinex who will be crypto.com Kucoin are all playing the same same Stupid shell game with their tokens as FTX did with ftt what do you think will Happen next so these are all exchanges That created their own token and looking At their Holdings the vast majority of Their funds their treasuries are in Their own token which they propped up They control the utility they sort of Control the value well this is not Damning on its own because remember what FTX did is they borrowed against their Token so they gave away their token for Actual real assets after they had Already pumped up their own tokens value We go into this in depth in this video Right here linked down below check it Out and by the way block by announcing Late last night we are shocked and Dismayed by the news regarding FTX and Alameda we like the rest of the world Found out about this situation through Twitter given the lack of clarity on the Status of ftx.com ftxus and alamedia we
Are not able to operate business as Usual until there is further Clarity we Are limiting platform activity including Pause and client withdrawals allowed Under our terms a stark contrast to what Their CEO Flory posted on Twitter two Days ago so who else is potentially Affected no idea if this is true but Sharing just in case I'm hearing from reliable sources that Crypto.com kucoin and several big OTC Desks had huge exposure to FTX and are Basically screwed again that's a rumor Unconfirmed and the CEO of crypto.com Does say this is false I spoke about the Extent of our exposure to FDX two days Ago he did say on November 8th that our Exposure to the Meltdown is immaterial Less than 10 million dollars in our own Capital deposited there for customer Trade execution and while they will be Doing a proof of reserves audit their Preparation is underway they have Publicly shared their cold wallet Address For some of our top assets on our Platform so I like this I like showing The proof that crypto.com seems to be Providing they say they have over 53 000 BTC over 391 000 eth and combined with Other assets a total of around three Billion dollars in assets and this was Interesting crypto.com released their List of wallets actually revealing they
Own twenty percent of their reserves in Ship and we can see right here that they Have about 30 percent of their assets in Bitcoin almost 20 percent in ship 17 in Ethereum six percent and four percent in Stable coins and then 20 in various Others and why do you think they hold so Much of a meme coin well it's like 600 Million ship and this must be where they Make most of their fees and how they Attract users and what this all comes Down to is the contagion not just with The cell pressure what other firms were Involved with their coins who's selling But with the potential regular relation That this just brought Gary Gensler just Appeared on CNBC and noticed how at the Beginning of this clip Gary Gensler Tries to misdirect he starts talking About the wins the SEC has had this year But then the anchor Andrew Sorkin brings Back the conversation and noticed how Gary gets a little embarrassed and we Had a big win even this week on a crypto Token called Library where a court Clearly said you've been on Fair notice And yes this is the Securities under the Securities Law In fairness In fairness there are millions if not Billions of dollars that are going to Get tied up that potentially will get Lost in this situation by In investors not just retail investors
But pensions that have given money to Venture capitalists that have invested In these things shouldn't this be more Regulated Yes Andrew and the laws are clear and And look the runway is running out I Mean uh uh the American public and and Investors around the globe are getting Hurt And again remember this is because the Failure of CFI not defy nothing more Centralized than a stable coin nothing More centralized than these companies Yet unfortunately defy regulatory wise May be caught in the crossfire senators Are moving forward with the SPF backed Bill after the FTX collapse In these final 90 seconds listen to the Follow-up from Andrew Sorkin where he Directly comes at Gary saying you are Meeting with Sam bankman freed on the Regular why were you fooled in all this Gary you said people should come in if You will Sam bankman freed it appears From your calendar on March 29 2022 at 4 Pm came in and actually met with you Along with Brad got katsuyama of IEX Someone who has uh draped himself in the Flag if you will of of an honorable Exchange do you feel like you were Hoodwinked I think we've been clear uh uh in these Meetings and you can look at my if my Calendars public uh many meetings with
Folks in this industry it's very clear In these meetings same matches to the Public send message to them uh that Non-compliance is not going to work the Public's going to be hurt but also we're Going to continue on these dual pass and If we need to going to be the cop on the Beat going into court uh putting the Facts and the law in front of uh judges This is an ongoing story as I get more Information I will keep you updated like Always see you tomorrow