>> SO LAWYERS FOR FTX PAINTED
A GRIM PICTURE DURING THE COMPANY’S BANKRUPTCY TRIAL,
COMPANY’S BANKRUPTCY TRIAL,
TAKE THAT SAM BANKMAN FREEDIEDMA
USED IT AS HIS OWN FIEFDOM,
WHERE IS THIS ALL HEADING?
I WANT TO BRING IN BROCK TO
DISCUSS.
BROCK, YOUR OVERALL ASSESSMENT
OF THIS WHOLE SAGA.
I MEAN, IT’S SO UGLY, SO SAD
AND UNFORTUNATE.
>> WELL, IT’S PROBABLY THE
BIGGEST, I MEAN, IT’S THE
BIGGEST SCANDAL OF MY LIFETIME
FOR SURE.
MICHAEL LEWIS HAD BEEN
PROFILING SAM BANKMAN FRIED FOR
THE LAST SIX MONTHS SO WHEN
IT’S SAID AND DONE WE’LL LIKELY
HAVE AN INCREDIBLE MOVIE
SIMILAR TO THE SOCIAL NETWORK
THAT A LOT OF PEOPLE’S LIVES
HAVE BEEN IMPACTED DIRECTLY,
OVER MILLION PEOPLE AND TENS OF
MILLIONS AS A RESULT OF THE
CONTAGION AND THE IMPACT ON THE
OVERALL INDUSTRY AND IT’S FULL
OF SCANDAL.
CHARLES: YOU KNOW, AND TO THAT
POINT, A LOT OF PEOPLE MAKING
COMPARISONS TO MADOFF, VICTIMS
OF VICTIMS, BUT A LOT OF THE
BERNIE MADOFF VICTIMS WERE
WEALTHY FOLKS HE BUMPED INTO IN
PALM BEACH.
AND A LOVE THE THESE ARE
YOUNGER PEOPLE, I MET ONE WHO
WORKED IN A HOSPITAL IN HIS
20’S.
AND THIS IS YOUR INDUSTRY AND
EVERYTHING IS THROWN--
EVERYONE IS SAYING LET THE
WHOLE THING BURN DOWN, IT WAS
ALL A SCAM TO BEGIN WITH.
HOW ARE YOU PUSHING BACK
AGAINST THAT?
>> THIS IS NOT A FAILURE OF
BITCOIN BLOCK CHAIN OR
CRYPTOCURRENCY TECHNOLOGIES,
THESE ARE LEGACY ISSUES, THIS
IS TRADITIONAL FRAUD.
THAT HAPPENED TO BTHE
PRODUCT.
THIS IS A CENTRALIZED FINANCIAL
COMPANY AND WREAKING HAVOC ON
THE INDUSTRY IN THE SHORT AND
MIDTERM, BUT IT DOESN’T CHANGE
MY VIEW ON THE IMPACT IN THE
FUTURE.
IF ANYTHING, PROBABLY HELP
ACCELERATE THE MOVE AWAY FROM
LEGACY CENTRALIZED FINANCIAL
INSTITUTIONS TO WHAT WE LOOK AT
DECENTRALIZED TRUSTLESS
INSTITUTIONS THAT EXIST.
IN THE LONG RUN IT’S GOOD TO
GET RID OF BAD ACTORS THOUGH
IT’S CREATED A TREMENDOUS
AMOUNT OF PAIN AND SUFFERING
FOR PEOPLE.
CHARLES: DO YOU FEEL IT SLOWS
UP INSTITUTIONAL ADOPTION OF
BITCOIN?
THERE’S A PUBLIC RELATIONS
ASPECT.
A LOT OF FOLKS ARE LUMPING IT
ALTOGETHER AND A LOT IN THE
FINANCIALS ARE LUMPING IT
ALTOGETHER.
>> AND IT HAS AN IMPACT.
MANY COMPARISONS TO ENRON LIKE
BALANCE SHEET MOVING IT AROUND
AND THE SAME WITH MADOFF.
AND WHERE WAS THE DUE
DILIGENCE.
AND THERE’S CELEBRITY
ENDORSEMENT, I DON’T BLAME THEM
FOR DOING IT, BUT MASSIVE
AMOUNTS POLITICALLY AND FILL
PHILANTHROPIC
PHILANTHROPICALLY.
BUT THERE ARE THOSE THAT VET
THEM AND DO THE DUE DILIGENCE.
IT’S LIKE GOLDMAN SACHS AND
MORGAN STANLEY UNDERLYING AN
IPO.
THE TWO MOST PRESTIGIOUS
CAPITAL INSTITUTIONS BASICALLY
ENPOWERED THIS ENTREPRENEUR BY
LENDING CREDIBILITY TO IT AND
THAT’S NOT SOMETHING YOU’VE
HEARD ABOUT.
CHARLES: ONE PERSON HITTING
THAT HARD FROM DAY ONE, ME.
EVERY SINGLE DAY ON MY SHOW,
MAKING MONEY ON FOX BUSINESS, I
HAVE BEEN SLAMMING THAT.
SEQUOIA RAISED MONEY FOR THEM
TWICE LAST YEAR, ONE $25
BILLION VALUATION AND IN ASIAN
A PUBLICATION, A GLOWING
PUBLICATION, WHERE SAM BANKMAN
FRIED BRAGGED ABOUT NOT
READING, AND THIS IS WHO THEY
WERE IN BED WITH, THEY’VE GOT
TO BE ANSWERABLE FOR THIS.
A MINUTE TO GO.
YOU BROUGHT UP THE POLITICIANS
AND NUMBERS COUNT UP.
LAST I DAW 70 MILLION WENT TO
POLITICIANS WITH ONE WEEK
BEFORE BANKRUPTCY.
CAN THE PUBLIC EVEN FEEL GOOD
THAT THERE WILL BE A LEGITIMATE
HEARING THAT SAM BANKMAN FRIED
WILL FACE LEGITIMATE
CONSEQUENCES FOR THIS?
>> WELL, THERE ARE MAJOR
CONCERNS, YOU KNOW, PEOPLE ARE
WONDERING WHY HE’S STILL
WALKING AROUND FREE IN THE
BAHAMAS RIGHT NOW.
WHEN IS THE GOVERNMENT GOING TO
ACT AND EVEN SCHEDULED TO SPEAK
AT A NEW YORK TIMES DEAL BOOK
CONFERENCE IN IN NEXT WEEK OR
SO.
CHARLES: YEAH.
>> ALONGSIDE SOME OF THE MOST
PRESTIGIOUS PEOPLE IN THE
WORLD, BY AARON SORKIN.
CHARLES: I’VE GOT TO GO.