MARIA: WELCOME BACK FTX FOUNDER
SAM BANKMAN-FRIED SET TO SPEAK
TODAY, THE DAYBOOK OF THE
SUMMIT.
THIS IS THE FIRST EVER HEARING
FROM HIM SINCE HIS FIRM
COLLAPSED.
OTHER SPEAKERS INCLUDING NEW
YORK CITY ERIC ADAMS, BEN
AFFLECK, BENJAMIN NETANYAHU,
MIKE PENCE, UKRAINE PRESIDENT
ZELENSKYY CREATING A DOMINO
EFFECT THROUGHOUT THE CRYPTO
INDUSTRY WALKS I ALSO THE LATEST
FIRM TO FILE FOR BANKRUPTCY AS
WELL.
JOINING US CHIEF INVESTMENT
OFFICER BEN MCMILLAN, THINK OF
HER BEING HERE IS A FIRST TIMER
HEARING FROM SAM BANKMAN-FRIED,
WHAT DO YOU THINK JOSÉ.
>> THIS IS PART OF THE PR BLITZ
FOR HIM TO RE-CRAFT HIS
NARRATIVE AND IT’S NOT A
FRAUDSTER BUT AN ENTREPRENEUR
WHO GOT OUT OVER HIS SKIS.
IF YOU LOOK AT THE NEAREST TIMES
ARTICLE THAT GOT OUT I FOR ONE
WAS SHOCKED OF WHAT A PUFF PIECE
THAT WAS, A COMPLETE BLIND EYE
VERY CREDIBLE ALLEGATION OF
FRAUD AND SINCE THEN I EXPECT
HIM, AND SAY THINGS GOT OUT OF
CONTROL.
NOTHING WAS FRAUDULENT OR
MALFEASANCE BUT WILL TRY BETTER
NEXT TIME.
>> THEN WHEN YOUR POTENTIAL
CRIMINAL WHEN PEOPLE ARE LOOKING
AT YOU FOR CRIMINAL CHARGES.
A PR BLITZ IS NOT A GREAT IDEA.
I DON’T UNDERSTAND, YOU DON’T DO
PR BLITZ WHEN IT COULD BE
INDICTED, WHY IS HE DOING THIS
NEC DIGGING HIMSELF A DEEPER
HOLE?
>> EVEN WORSE THAN THAT HE HAD
CRYPTIC TWEETS, HOURS AFTER THIS
WHOLE THING UNFOLDED WITHIN THE
CRYPTO SPIRIT WHICH IS NOTHING
ELSE BLOCK CHAIN IS VERY
TRANSPARENT VERY REAL AND
CREDIBLE FORENSIC EVIDENCE OUT THERE ABOUT WALLET TRANSFERS AND
THERE ABOUT WALLET TRANSFERS AND
CUSTOMER FUNDS DAYS WERE
FAR-REACHING ALLEGATIONS IS
EVIDENCE TO BACK IT UP THEN HE
GOES ON TWITTER AND THE NEW YORK
TIMES IN A VIDEO, I CAN ONLY
IMAGINE BOTH OF HIS PARENTS WERE
HIGH-PROFILE PROFESSORS OF LAW
AT STANFORD SHOWED UP AT THE
COMPOUND AND THEY HAVE BEEN OUT
WITH WEEKS, I HAVE TO IMAGINE
STAFF TWITTER ANY OF THE
DISASTROUS BOX AS FAR AS I CAN
TELL YOU BASICALLY ADMITTED TO
CUSTOMER FUNDS I CAN ONLY THINK
OF TRYING TO WALK SOME OF THAT
BACK AND DO AS MUCH AS THEY CAN
TO REPAIR HIS IMAGE.
>> BEN, IF BLOCK CHAIN IS SO
TRANSPARENT AND YOU CAN FOLLOW
THE ASSET SO EASILY, WHY WASN’T
THIS UNCOVERED AND DON’T YOU
WORRY ABOUT ALL THE OTHER
SCAMMERS AND FRAUDSTERS AND CON
ARTIST WHO ARE STILL OUT THERE.
HE COULD JUST GO ON TWITTER AND
YOU CAN SEE THEM IN THEIR PITCHING ARE AS EXPLOITIVE.
PITCHING ARE AS EXPLOITIVE.
>> ABSOLUTELY ONE OF THE BIG
ISSUES IS HOW MUCH TRUST THEY
GARNERED SO QUICKLY.
PEOPLE ASK US WHY DID YOU GUYS
EVER DO BUSINESS WITH FTX, ONE
OF THE SIMPLE REASONS, FIRST OF
ALL WE NEVER LIKED THE REASON
THE FTX IS A CLOSER RELATIONSHIP
WITH ALAMEDA WHY WOULD WE DO
BUSINESS WITH AN EXCHANGE WHEN A
COMPETITOR CAN SEE WHAT WERE
DOING.
SECONDLY AN OFFSHORE EXCHANGE,
THERE IS A LOT BEHIND CLOSED
DOORS THAT YOU COULDN’T GET
ACCESS TO WHICH IS VERY
SURPRISING THEY GOT SOMEBODY BIG
CHECKS FROM SO MANY BLUE-CHIP
D.C. MP FUNDS.
WHAT’S INTERESTING AS THIS COMES TO LIGHT PEOPLE STARTED TO CHIP
TO LIGHT PEOPLE STARTED TO CHIP
AWAY AND BETTER CLARITY AND
REPORTS ARE COMING OUT THEY HAD
BACKDOOR PROGRAMS BETWEEN THE
CONFERENCE, ALAMEDA WOULD TAKE
FUNDS ON BEHALF OF FTX PREDICTED
TOTAL MESS.
>> IS A DRUNKENNESS OF MANIA.
IT IS NOTHING BUT A EUPHORIA AND
WHEN THAT DIES GOOD LUCK GETTING
IT BACK.
WE’RE JUST IN THE BEGINNING
STAGES OF IT DISAPPEARING.
>> WHEN THE TIDE GOES OUT YOUR
SWIMMING NAKED IN HERE THERE’S A
LOT OF PEOPLE SWIMMING NAKED
THAT MANY PEOPLE WERE SHOCKED
ABOUT.
THE MEDIA CONTRIBUTED TO THIS,
THE ONE THING ABOUT CRYPTO IS
VERY EASY TO CREATE LEVERAGE OUT OF NOWHERE, FIRST IS VERY MUCH A
OF NOWHERE, FIRST IS VERY MUCH A
LEHMAN MOMENT TOO MUCH LEVERAGE.
IT’S MADE OFFERING MF GLOBAL,
CUSTOMER FUNDS, OUTRIGHT FRAUDS,
ONE OF THE REASONS THEY WERE
ABLE TO DO THIS SO QUICKLY THEY
CREATED THEIR OWN TOKEN, THE FTT
TOKEN AN EXAMPLE LIKE GABE,
BECAUSE THEY HAD AN EXCHANGE
THEY CAN FABRICATE THE HUGE
MARKET CAP A HUGE BALANCE SHEET
OUT OF NOWHERE AND FROM THAT
THEY WOULD BORROW MONEY.
>> U.S. REGULATORS DID NOT
INTERVENE BECAUSE THEY TRADED IT
AS IT SHOULD’VE BEEN TREATED AS
DIGITAL BEANIE BABIES, ALL OF
CRYPTO AS COLLECTIBLES.
SO UNFORTUNATELY FOR ALL THE
CRYPTO ENTHUSIAST AND TRADERS
AND SPECULATORS AND GAMBLERS
THERE’S NO SYSTEMIC RISK IN IT.
LEHMAN BROTHERS AND OTHER
FINANCIAL INSTITUTES HAVE A
GIGANTIC BAILOUT FROM THE
FEDERAL GOVERNMENT THE FEDERAL
RESERVE BUT NOT CRYPTO, IT AIN’T COMING.