TELLING A REPORTER A BIGGEST SINGLE F-UP WAS FILING FOR
SINGLE F-UP WAS FILING FOR
CHAPTER 11 BANKRUPTCY.
LIZ?
ELIZABETH: HERE IS STEVE MOORE.
DEMOCRATS ARE NOT RETURNING
CAMPAIGN DONATIONS.
SOME ARE GIVING THEM TO CHARITY.
THIS GUY RUNNING THE BANKRUPTCY,
THE GUY RUNNING IT, HE
LIQUIDATED ENRON.
HE IS SAYING HE IS SPEECHLESS.
NEVER SEEN ANYTHING LIKE IT,
STEVE.
WALK YOU THROUGH THE NUMBERS.
THROWING MONEY INTO A FURNACE.
ONLY 740 MILLION LOWER CASE
MAGIC BEANS CRYPTOCURRENCY LEFT
10 BILLION TO $50 BILLION IN
LIABILITIES, SIEVE.
>> SO THIS WAS THE CLASSIC PONZI
SCHEME.
WE SAW THIS 15 YEARS AGO YOU
KNOW WITH THE BERNIE MADOFF
SCANDAL.
DON’T FORGET, LIZ, GUESS WHO
GAVE ALL HIS CAMPAIGN
CONTRIBUTIONS TO?
DEMOCRATS.
AMAZING HOW MANY OF THESE CROOKS
ARE BIG DEMOCRAT CAMPAIGN
CONTRIBUTORS.
NOW HERE IS THE IMPORTANT THING
ABOUT THIS.
THIS WAS MONEY BASICALLY
DEFRAUDED FROM INVESTORS T WAS A
FRAUD SCHEME.
HE IS A CRIMINAL THIS IS A
CRIME.
IT WAS THEFT.
ELIZABETH: WE GOT TO GO THROUGH
THE BANKRUPTCY FILING.
THIS GUY, STEVE, HE PERSONALLY,
SAM BANKMAN-FRIED, HE TOOK A
BILLION DOLLAR LOAN OUT OF
ALAMEDA RESEARCH THAT IS FTX
SISTER COMPANY.
HIS COFOUNDER TOOK OUT HALF A
BILLION DOLLAR LOAN.
COMPANY MONEY WAS BLOWN ON
LUXURY HOMES IN THE BAHAMAS.
THERE WAS NO ACCOUNTING
DEPARTMENT.
EVEN NO LISTING OF CUSTOMER
LIABILITIES ON THE FINANCIAL
STATEMENTS.
WE KNOW HE TOOK FROM PETER TO
PAY PAUL 8 BILLION, BUT HE
PACKED HIS FTX BOARD WITH CEFTC
OFFICIALS THAT WORKED UNDER
GEORGE W. AND UNDER OBAMA.
EVEN A FORMER OF THE CHAIR OF
HOUSE AGRICULTURAL.
HE SAT DOWN, MET WITH THE BIDEN
WHITE HOUSE,CTTC AND CONGRESS TO
WEAKEN THE GOVERNMENT OVERSIGHT
OF CRYPTO EXCHANGES.
>> HE WAS, BASICALLY WHAT YOU’RE
SAYING, HE WAS BUYING OFF THESE
DEMOCRATS TO GIVE HIM COVER.
NOW WHAT I, THE FIRST IMPORTANT
POINT IS, THAT IT IS, IT IS SO
MATTER OF MORAL ETHICS THAT
THESE DEMOCRATS WHO RECEIVED --
WE DON’T KNOW THE EXACT AMOUNT
OF MONEY BUT IT WAS WELL OVER
$50 MILLION THAT WAS BASICALLY
GIVEN TO DEMOCRATIC CAMPAIGN,
CAMPAIGNS.
THOSE CANDIDATES HAVE A MORAL
RESPONSIBILITY AND MAYBE A LEGAL
RESPONSIBILITY, I’M NOT A
LAWYER, TO RETURN THAT MONEY.
IT SHOULD GO INTO A FUND TO, SO
THAT THAT MONEY CAN BE RETURNED
TO THE INVESTORS.
THE DEMOCRATS ARE RESISTING
THAT, LIZ.
THEY DON’T WANT TO DO IT.
ELIZABETH: WHY?
HERE’S THE THING.
I COVERED CORPORATE ACCOUNTING
SCANDALS.
IT IS CIRCULAR.
HERE IS WHAT GOES ON.
FTX GAVE BIG CAMPAIGN DONATIONS
TO POLITICIANS.
THEN THEY LOBBIED LAWMAKERS AND
GOVERNMENT OFFICIALS, ALSO
CONGRESS.
>> RIGHT.
ELIZABETH: CONGRESS APPROVES THE
BUDGET AND PAYCHECKS FOR THOSE
MARKET COPS.
HE WAS HIRING CFTC MARKET COPS
TO SIT ON THE BOARD.
SO YOU SEE HOW IT IS CIRCULAR.
YOU KNOW, SO WHAT IS GOING ON --
>> YES.
ELIZABETH: DEMANDED CFTC BE THE
ONLY REGULATOR, NOT THE SEC.
THAT THE CFTC ALONE WOULD
DIRECTLY, ONLY THEM WOULD CLEAR
HIS COMPANY’S CRYPTO TRADES.
NO MIDDLEMEN, NO GUARDRAILS, NO
INTERMEDIARIES.
HE WANTED TO US ALGORITHMS
RATHER THAN BROKERS TO HELP
CLEAR TRADES.
>> BY THE WAY THIS IS EXACTLY
WHAT HAPPENS OVER TIME WITH
ALMOST ALL REGULATORY AGENCIES.
THEY GET CAPTURED BY THE
INDUSTRIES THAT THEY’RE SUPPOSED
TO BE REGULATING, RIGHT?
THIS HAS BEEN HAPPENING FOR 40
YEARS.
THIS IS JUST AN EXTREME EXAMPLE.
I GOT TO TELL YOU, THIS ISN’T
THE ONLY COMPANY THAT IS DOING
THIS.
SO THERE IS TWO ISSUES.
ONE IS, THE WE HAVE TO KEEP
PRESSURE, I HOPE YOU WILL AT
FOX NEWS, FOX BUSINESS, KEEP
PRESSURE DAY AFTER DAY THAT
THESE DEMOCRATS HAVE TO GIVE THE
MONEY BACK.
NUMBER TWO, I’M NOT CONVINCED
THAT MORE REGULATION IS THE
ISSUE HERE.
WE HAD A MAJOR FINANCIAL SCANDAL
IN 2008 WHICH WAS THE ONE OF THE
BIGGEST FINANCIAL SCANDALS IN
HISTORY WITH THE HOUSING CRISIS,
THAT WAS THE MOST REGULATED
INDUSTRY AT ALL.
THE HOUSING MORTGAGE INDUSTRY
WAS BASICALLY RUN BY THE
GOVERNMENT.
I’M NOT ONE WHO SAYS WE HAVE TO
RUN IN REGULATE THE CRYPTOS
BECAUSE THE PROBLEM WITH THAT,
LIZ, I’M ON THE BOARD OF A
CRYPTO COMPANY, THE REASON THAT
INVESTORS LIKE CRYPTOS IS
BECAUSE THEY ARE NOT HELD BY
GOVERNMENT.
THEY ARE ALTERNATIVES TO THE
FEDERAL RESERVE AND THE CENTRAL
BANKERS AND FIAT CURRENCY.
WE’LL SEE HOW ALL OF THAT
EINVOLVES.
THIS IS A MEGASCANDAL THAT IS
RIGHT AT THE DOORSTEP OF THE
DEMOCRATIC PARTY.