RECEIVED DONATIONS.
THANK YOU.
REPORTER: LIZ.
ELIZABETH: HILLARY VAUGHN,
THANKS FOR YOUR REPORTING.
BRIAN STYLES, CONGRESSMAN,
BITCOIN FOUNDATION PRESIDENT
BROCK PIERCE, HILLARY VAUGHN 92%
OF THE FTX DONATIONS WENT TO
DEMOCRATS MAXINE WATERS SAYS IT
IS 50-50.
WHAT DO YOU SAY TO THIS.
>> WE’LL HAVE A GOVERNMENT THAT
IS ACCOUNTABLE TO LOOK INTO THIS
IN D.C.
WE HAVE HORRIBLE TWO YEARS OF
LACK OF ACCOUNTABILITY AND
OVERSIGHT IN THE FINANCIAL
SERVICES COMMITTEE.
THE COMMITTEE WITH OVERSIGHT
OVER THESE TYPES OF BUSINESSES.
WE HAVE TO ACTUALLY BRING PEOPLE
BEFORE US.
WE HAVE TO HOLD PEOPLE
ACCOUNTABLE.
IN THIS CASE WITH THIS COMPANY,
A LOT OF PEOPLE LOST A LOT OF
MONEY.
ELIZABETH: YEAH.
>> THERE ARE PEOPLE HURT ALL
ACROSS THE COUNTRY.
ELIZABETH: IT IS BEING CALLED,
YOU KNOW, BROCK, A PONZI SCHEME
FRAUD LIKE AN ENRON-STYLE PONZI
SCHEME FRAUD IN A CRYPTO
WRAPPER.
THEN WE’RE SEEING YOU KNOW, IT’S
HIGH-PROFILE CELEBRITIES.
WE JUST REPORTED THAT.
BUT FTX APPARENTLY HAD A
REVOLVING DOOR STRATEGY OF
HIRING GOVERNMENT WORKERS
INCLUDING AT THE CFTC.
IS THAT WHAT YOU’RE SEEING
THROUGHOUT YOUR INDUSTRY?
>> I MEAN THIS IS A VERY UNIQUE
CASE AND OBVIOUSLY AN INCREDIBLE
TRAGEDY AND I THINK THE ENRON
ANALOGY IS APPROPRIATE.
THERE WAS A REAL UNDERLYING
BUSINESS HERE AND THEY WERE
PLAYING BALANCE SHEET GAMES AND
TAPPING INTO CUSTOMER FUNDS.
OVER A MILLION PEOPLE HAVE BEEN
IMPACTED BY THIS.
CLEARLY THEY WERE VERY COZY WITH
GOVERNMENT.
SAM BANKMAN-FRIED WAS THE SECOND
LARGEST DONOR TO THE BIDEN
CAMPAIGN IN 2020, THE FIFTH
LARGEST DONOR IN THE MIDTERM
ELECTIONS AND, BASICALLY BEING
THE SELF-ANOINTED INDIVIDUAL TO
TRY TO TELL REGULATORS WHAT THEY
SHOULD DO.
CLEARLY THEY HAD VERY CLOSE
RELATIONSHIPS WITH REGULATORS
AND CANDIDATES AND ELECTED
OFFICIALS.
>> TO BROCK’S POINT,
CONGRESSMAN, IT SHOWS HOW SWAMI
AND CUSHY IT GETS WITH THESE BIG
DONORS.
SHOW THE VIEWER WHO GOT MONEY
FROM FTX AND SAM BANKMAN-FRIED.
YOU’RE GOING TO SEE THE FUTURE
FORWARD PAC.
YOU ARE GOING TO SEE CHUCK
SCHUMER, HOUSE MAJORITY PAC.
DCC, CONGRESSIONAL CAMPAIGN
COMMITTEE FOR THE DEMOCRATS,
SENATORIAL CAMPAIGN.
27 MILLION TO PROTECT OUR FUTURE
PAC.
MILLIONS OF DOLLARS TO DEMOCRATS
IN AT LEAST A DOZEN STATES,
CONGRESSMAN.
TIME AND AGAIN, THIS IS, THIS IS
A STORY THAT HAS BEEN OUT THERE
FOR GENERATIONS.
I MEAN YOU SAY YOU WANT TO HOLD
PEOPLE ACCOUNTABLE BUT THEN THIS
BLOWS UP.
>> IT IS BECAUSE PEOPLE HAVE NOT
BEEN HELD ACCOUNTABLE.
WE HAVE NOT HAD THE PROPER
OVERSIGHT IN THE FINANCIAL
SERVICES COMMITTEE WE NEED.
ONE OF THE QUESTIONS WE ALL HAVE
WHY IS THE COMPANY IN THE
BAHAMAS IN THE FIRST PLACE AND
NOT IN THE UNITED STATES?
WE NEED TO HAVE INNOVATION HERE
IN THE UNITED STATES AND THEN
BRING FOLKS BEFORE US AND
ACTUALLY HOLD THEM ACCOUNTABLE.
AGAIN THE FINANCIAL SERVICES
COMMITTEE FOUND THEMSELVES
ASLEEP AT THE WHEELS.
THE GOOD NEWS WILL HAVE
REPUBLICANS WITH GAVELS ON
JANUARY 3rd IN WASHINGTON.
ELIZABETH: TO YOUR POINT, IF
THEY’RE BASED IN THE BAHAMAS
ISN’T THAT AGAINST THE LAW TO BE
GIVING DONATIONS OUT OF THE
BAHAMAS TO POLITICIANS IN D.C.?
>> WELL, THERE IS A LOT OF
QUESTIONS GOING ON.
ONE WHO IS GIVING THE DONATIONS?
WHERE ARE THEY AT?
EXACTLY THE QUESTIONS THAT
SHOULD BE ASKING IS WHY ARE THEY
IN THE BAHAMAS IN THE FIRST
PLACE?
WHY ARE THESE COMPANIES NOT IN
THE UNITED STATES?
HOW DO WE GET A REGULATORY
FRAMEWORK IN THE U.S. THAT IS
ENCOURAGING CRYPTO INNOVATION
HERE IN A SAFE AND PRODUCTIVE
MANNER RATHER THAN THE RISKY
BEHAVIOR IT APPEARS THIS COMPANY
WAS INVOLVED IN.
ELIZABETH: BROCK WHAT DO YOU SAY
TO WHAT THE CONGRESSMAN IS
SAYING ALL THAT IS GOING ON?
YOU LOOK AT THEIR BALANCE SHEET,
IT IS LIKE COBWEBS THIS COULD BE
A 16 BILLION-DOLLAR FRAUD.
THE LEVERAGE IS 10 TO ONE.
THIS IS NOT AS BIG AS 10 RON AND
MADOFF.
I COVERED CORPORATE ACCOUNTING
SCANDALS WITH THE
"WALL STREET JOURNAL."
FRONT EDGE OF WORLDCOM, HAD A
PIECE OF ENRON.
WHEN I’M LOOKING AT THEIR
BALANCE SHEET, BROCK, IT IS
REALLY SHADY STUFF.
>> WELL I COULDN’T AGREE MORE
WITH WHAT THE CONGRESSMAN SAID.
THIS IS AN OPPORTUNITY IF WE GET
THE RIGHT REGULATION IF WE GET
THE RIGHT POLICY.
IT ALL COMES DOWN TO THAT.
IF DONE CORRECTLY A LOT OF
PEOPLE ARE QUESTIONED ABOUT
EXCHANGES BASED OFFSHORE.
IF AMERICA GETS THIS RIGHT WE
CAN BRING A LOT OF INNOVATION
BACK HOME.
THESE ARE EXCHANGES ARE PLACES
WHERE THEY ARE MEANT TO
EXCHANGE.
PEOPLE GOT LAZY THEY WERE USING
THEM LIKE BANKS.
THEY WERE NOT REGULATED IN THAT
WAY.
WE HAVE TO SEE THE BALANCE
SHEETS.
WE HAVE TO KNOW THEY WERE NOT
TAPPING INTO CUSTOMER FUNDS F
LEGISLATORS GET THIS RIGHT.