# FTX wallets drained while we're on air with FTX team member

## Метаданные

- **Канал:** UpOnly
- **YouTube:** https://www.youtube.com/watch?v=FZzqChK4RXY
- **Дата:** 12.11.2022
- **Длительность:** 3:05:15
- **Просмотры:** 106,922

## Описание

Cobie & Ledger talked to Zane Tackett, who directed institutional sales at FTX until just a couple days ago, and was working to help find solutions for the gap directly with top team members. And while we're getting the story of what's happened the last week, wallets start getting drained. We streamed for three hours and didn't always say a lot, but here's the whole thing.

00:00 - Intro
02:30 - Zane Intro / What was his role?
07:50 - Comparing FTX to the Bitfinex hack
10:05 - Lack of Communication from Sam 
18:45 - What was it like to work at FTX? / Internal Controls Structure
35:45 - Alameda’s track-record
40:28 - FTX hacked on-air / Speculating on who the hacker could be
1:09:15 - Zane leaves / Comparing this to Mt. Gox
1:17:35 - Recapping the series of events / Internal Permissions 
1:27:25 - What do hackers do with the funds? / Sam Trabucco
1:41:50 - Hackers set up a Multi-Sig / FTX App tries to push an update 
1:56:30 - Speculation and banter / Will there be a movie made out of this?
2:13:08 - Caroline and Alameda
2:17:25 - New podcast ideas and industries 
2:22:30 - Hack talk / Old Su Zhu tweets / FTX ICO
2:34:00 - Elon Musk / Twitch Chat
2:41:58 - Did SBF cause the 3AC blowup? / Multicoin Capital / Auditors 
2:55:35 - Final thoughts

## Содержание

### [0:00](https://www.youtube.com/watch?v=FZzqChK4RXY) Intro

thank you only ten nine ignition sequence Stars hello and welcome to up only TV I'm Ledger Phil's honestly completely absurd even having the uh like rocket launch intro at the moment but that's what we've got um thanks for being here with us and we will uh get straight to the show we've got Kobe of course and Zane Tackett who's an ins uh Insider previous Insider at FTX uh let's hit it if I can switch over to that view Kobe good morning good evening whatever time of day it is how you doing yeah I'm all right man I um I feel like it was like done like one of these episodes every day or something it feels like I don't know but it's like because I'm getting a little sleep so I don't know what day is which and then obviously we did the stream on the day that like the news came to light right like I was in bed and you like called me was like we've got to go live now I was like I'm a little bit drunk um but like that just day seemed so absurd to me um that it was sort of like an ongoing comedy in a way um and then the following days felt like okay now we've reached the tragedy section um and you know they're often a little oscillation back and forth uh here and there and now I just feel like exhausted numb yeah uh like you know like drained um I started the show at the FTX logo and I didn't even realize how uh unnecessary that was because I was used to it from the last year so sorry I took that off chat no conspiracy theories um yeah anyway Zane welcome how's your week been yeah it's been a long one I can definitely relate to the days just kind of starting to blend together

### [2:30](https://www.youtube.com/watch?v=FZzqChK4RXY&t=150s) Zane Intro / What was his role?

um I literally haven't slept the last two nights so it's been uh it's been hectic um yeah let's give people just a little bit of context because I don't think the typical viewer is gonna know like who you are and what you've been up to and all that but let's just start with what your title was at FTX you left your position unexpectedly kinda you had resigned but then got your slack turned off uh unexpectedly because you were yeah what was your title what were you doing as of like yesterday so I was a head of institutional sales um so I ran you know the VIP team and managed all of our large customers uh and you know like when I found out what was going on um on Tuesday informed Sam and the executives that you know I'd be there to help the clients kind of weather the storm and you know get through this and try to help them as much as possible but after that I wouldn't be able to continue on um so you know I kind of my expectation was I continue to kind of fulfill my role until all the pieces have settled and you know things are kind of in a clear place and then they had a sunsets relationship there but all of a sudden I went to go into slack and uh it was gone and yeah it's got hard to communicate information if I don't have access to it yeah so chat's kind of going wild apparently FTX hot wallets are currently being uh being drained or Consolidated into some other wallet but there's only speculation about what's going on right so is there any actual information that is anyone saying this is um so yeah it seems like uh again you know I don't have access to um to internal comms or anything but it seems like uh ftxus and ftx. com are consolidating balances um and then you know as to what happens with the bounces once that's done I'm not too sure on how like um bankruptcy procedure works well thing but they're like selling stuff right apparently they tried to sell chain link but they something went wrong they swapped tether for die there's a lot of weird transactions on one inch um yeah it's like I'm quite curious here is um like I wonder if you know you just need to get everything into USD and that's kind of what you base it off of and so maybe they're seeing that that's how they can get the best you know conversion to USD maybe you're trying to get you know the liabilities and assets to match up one to one and so they had a surplus of the SCT it's really swapping everything in a single transaction on one inch is not the best execution you could get in this scenario so uh you know before you uh hopped out I've also mentioning this with Ledger it's like you know who's actually managing this is this you know is this like some guy who's running the bankrupt bankruptcy procedure and you know this first time ever interacting with defy it was like it us but then monitoring or you know overseeing a I'm not sure can we yeah just to back up a little bit again though like you were saying as recently as yesterday you know you spent time with Sam and we're trying to figure out uh still at least to some people as a team we're trying to say like what options are there that I guess are not bankruptcy like can you raise money can you have a Twitter thread talking about tokenization that was after he left but like I presume y'all were looking through all potential outcomes to make customers whole or figure plug a hole or whatever um as early as yesterday or as late as yesterday yeah so yesterday morning um was like and I I'm obviously not an expert in how the ideal bankruptcy procedure goes but um I just don't see how uh going through bankruptcy would be superior to just you know returning whatever assets or making whatever assets you currently have available for both users and then you know there is a sizable amount of illiquid assets that you can give them a token that gives them you know proportional rate to and then they get whatever you currently have and a chance of getting something more in the future uh and then that way you have certainty up front you know it gets done a lot quicker but the flip side of that is you know we're regulated in a wide range of jurisdictions I have no idea how Regulators approach you know tokenizing debt and kind of avoiding a bankruptcy procedure through that manner you know like when bits and X did it obviously the regulatory environment was not nearly as built out or uh it was present in the crypto markets yeah to add to context you've been around crypto for a long time and you're actually uh at bit to next when they had the hack so um if anybody hires Zayn just be very careful about the timing because the Zayn curse is maybe on par with the up only curse yeah some I just remember somebody posted on Twitter like oh man everything is the same guy touches goes to [ __ ] and like the Grim Reaper meme instantly popped in my head so you know went

### [7:50](https://www.youtube.com/watch?v=FZzqChK4RXY&t=470s) Comparing FTX to the Bitfinex hack

and made that of me like knocking on bits next to the store knocking on fjx's door yeah um you definitely view that it's like a once in a lifetime experience like you know it was the public face of the company that went through arguably the largest heist in the history of the world and like you're like oh well you know nothing can top that well I know I guess I was wrong what about in terms of severity um you know we I only see it in terms of the difference in like price action but what about then the difference of how it feels on the ground like the bitfinex so it's very different so like before you were kind of talking about like the you know the different stages you go through and with bitfinex first you have the shock of like oh wait what you know how we had a limit of 2500 BTC a day how to back it bypassed how the hell did we lose 119 756 Bitcoin but then you know you have like certainty around it like okay this is what the situation is now we need to deal with handling it um and then kind of everything just switches into that gear and you know you have all the information to play off of and you try to make the best of it um this one was way different because you know like first it was rumors uh and then you know it is the lack of communication continued on our end and was like all right wait there why wouldn't we be addressing this if there isn't a deeper problem um and then you're like okay but what is the deeper problem you know is it uh is it that there was a minor hack we need to move funds around is it that um we're afraid that our assets don't meet liabilities or you know whatever it might be but like you're just kind of poking around in the dark uh and then as time dragged on the clarity didn't really like we still never got to that point where it's like okay this is the exact situation how are we gonna deal with it with FTI um yeah and so that made it a lot harder uh because you know you're also going to have people asking like all right I had this much ethereum on the exchange if you can just tell me how much I lost I can try to like hedge my risk elsewhere or you know position myself best to do that uh and that never happened at FTX like there was never uh you know another

### [10:05](https://www.youtube.com/watch?v=FZzqChK4RXY&t=605s) Lack of Communication from Sam

thing is a bit fancy had a snapshot like these are your balances as of the state any funds deposited after won't be counted towards the haircut that will be returned um all positions are going to be closed at this day and it just like makes it a lot cleaner there wasn't ever that like clear Mark um in this instance and so it yeah it just made it a lot harder to operate on you know you have clients asking like hey guys what's the situation here what did Sam even say like in person or on slack or like did he say hey we have a problem we have to solve it did he say like did he own up I screwed up and we have to stop like what did he say what was the language like uh so not a lot um that was like kind of one of the most frustrating aspects is that there's just a complete lack of communication uh and then you know when there was communication a lot of times it was like Hey guys I'll try to have something out you know in the coming hours um and basically like if you don't give somebody information then their mind just naturally goes to what's worse right they naturally think of the worst outcome whereas even if you give them information that they don't want to hear but it's concrete and they can act off of it um yeah I think it greatly improves the situations like I think that's one area where you're really fumbled if we would have just been much more transparent from the beginning um it could have been better I don't know if resolved is the right word but uh it definitely couldn't it definitely would have helped prevent this Panic from spreading of like you know this major exchange why aren't they even addressing these concerns about them not being fully uh or having full reserves um and then the longer it goes the you know the more that compounds and you're like well it's been this long like surely if this wasn't true they would have already addressed it and like you know um tried to try to clear things up so it made a lot harder the silence was really deafening after a while like it at first it was just like this is ridiculous there's no chance that they can be in insolvent like they raised two billion dollars in the last year and like surely they've been printing money non-stop but then there was just silence and it started to be like okay the only thing that makes me think that this could be true is the fact that I just have not said anything for like 36 hours now yeah but internally during that time um like what did you think what did the other people inside think because I know that you were um going on Twitter and like defending uh FTX and I also know that you had what 60 70 80 of your net worth inside uh FDX like on ftx's um box which is now I assume you're marking to zero so um I just would like to clarify that I don't think that the expected value of any assets there is zero it's just that the way that I view things is if I don't have it I'm just going to mark it to zero that way I don't get disappointed but yeah fair enough but like you know I guess for a lot of us we were just like set on Twitter like speculating and stuff whereas for you like was you I guess you were sat near Sam who was either like lying to your face or lying by a mission and letting you go defend FDX in public knowing that would tarnish your reputation and not what you were saying um was not true um so was he just like lying to you uh so he wasn't lying to my face because uh like before all of this broke out uh I didn't see him uh in person I was in Portugal uh up until midday Monday I guess European time and then flew out and like um when I landed in Miami uh was a like the silence just became too much and then I was like all right there's got to be something deeper here but even then you know I was trying to think like all right like like there's no way it's that bad like I feel like they're just really afraid of you know trying to tarnish this like you know what's a pretty Sterling reputation especially with all the licensing and everything that we have and so like when it gets broken or when the news is broken you know it'll it won't be that bad and like even I mean I'm an idiot you know but even to the point that on Tuesday I deposited like 750k uh and uh into FTX because I was like there's no way that this is gonna be a death nail or you know um something that will bring us down and as to say I'm lying like uh it was more silence than anything like um you know I originally asked like all right guys we're kind of fumbling this PR right like these rumors that aren't even related to us it's related to Alameda and you know um like it's a very I guess you could argue a limited view of the overall books like you know nobody knows if they have another entity under the same parent entity that has more assets or anything like that um and so you know in my opinion it was just a kind of a rumor those being blown right out of proportion and as an exchange it doesn't matter if one of your clients goes under right like uh it could be a minor hit um it could affect your liquidity or your volumes but that's not going to affect you know your ability to redeem customer deposits or anything like that um and so you know the three questions that I had were uh can we share that the five percent on FTX earned is just pure marketing um can we uh can you stop there FTX earn five percent y'all we're basically just doing it to get users and you were paying it yourselves not actually feeding yield that's my understanding um the earned product isn't really an Institutional offering right like I deal mostly with our um with our high frequency Traders it's like that's just not something that kind of uh is of much interest but yeah um I think after like you know the block find news with FCC and everything came out it was like all right it's safer if we just treat it as a um is a marketing expense uh and so that's question one question two was just um you know are we solving uh fully solvent and like are we lending out um customer funds to anybody uh and then lastly is there anything I should know that I don't know um and I just didn't get a response so like my base level of operations you know there's no way you're touching customer funds because like it was an exchange that's just not something that you do uh and also just uh like you know like you're saying we raised oh well over a billion dollars at a 32 billion valuation we have these audits we have um all these licenses and all these different jurisdictions like you know I've been here for two and a half years things have run with pretty much you know nothing more than a minor hiccup it's like yeah we'll be fine of course we'll be fine it's like I had no problem going out in the public and um you know trying to defend uh trying to defend FTX and sharing what you know I thought was accurate um and to Sam's defense like you never he just didn't get back to me on my questions he didn't straight up lie to me on it um I'm not sure how much that's better but uh yeah and so you know I made the decision that I should go in and defend with without all the info without all the details because you know I feel like it's a safe assumption and general Sam's unbelievably busy and you know it doesn't usually have a very high response rate to me anyways um so kind of just kind of figured that was more of the same um and then yeah on the Tuesday when like the duffing you know kind of got worse and worse or the silence got worse and it was like there's got to be something bigger here like what's going on and then um he just shared the link to uh to his Twitter post about Finance acquiring us um and then it was that evening I was like look guys like you know I clearly asked if there was anything I should know that I don't know and it's very easy if you would if you could just say like hey

### [18:45](https://www.youtube.com/watch?v=FZzqChK4RXY&t=1125s) What was it like to work at FTX? / Internal Controls Structure

there are some issues that we need to look further into you know maybe be bit more careful on what you're saying or like um you know hold off for now or something but just let me go out there and do that yeah I mean yeah it sounds pretty rough um I want to ask a little bit about like what it was like to work at FTX um not in the last week I guess because like you know now um you you've seen a lot of these stories come out you're seeing actually there was this culture of fear and bullying but also you're seeing these like um there were these big orgy sex parties in this penthouse on top of like the Bahamas or something um like how much of this stuff is um stuff that like employees FTX were um exposed to sorry for the bad pun I guess and uh how much of it is like just not true or what so to be fairly I don't want to say whoever is saying never being bullied is you know not telling the truth um because I don't I'm actually not aware of the specific incident that's being raised there but like I did comment on Twitter that um you know Sam will fire anybody that speaks against him yeah no that's not true I'll get fired right away uh like I have a pretty big problem of folding my mouth when I uh you know have something to say or that I think needs to be said as a Counterpoint to that not being fired but I have heard directly from high level FTX people that they just straight up got like not treated the same when they were when he was highly when he was encountered uh in a negative sense was that you think that might just have been different people Different Strokes for different people or so maybe I just never got that like good treatment because I never uh I never played the you know yes man role um but like so maybe it just wasn't the beginning um Sam wasn't terribly responsive to me uh and you know it kind of seemed like that was not just specific to me there was definitely people that he was much more responsive to and I you know I wasn't sure why or like what aspect it was that you know garnered him that more attention but I remember I did have a problem with Sam once and when he raised he's like look do I find talking with you to be a little bit Troublesome we have difficult conversations and I was like yeah I mean but like the only conversations we should be having are difficult because if it's easy why would I bring it to you I should be handling it myself um and so maybe just the nature of the conversations that we were having was always difficult and mm-hmm yeah I never once felt that I couldn't speak my mind never uh question but maybe that's just because I'm ignorant of other people's attempts to kind of shut that down I don't know uh as to the sex parties that that's [ __ ] hilarious like I've always kind of uh I feel bad talking about Sam like this like I've always just kind of wondered like I don't think he is focused on anything outside of work ever you know like 24 7 365 I've legitimately pondered like is there a sexual drive there is there a drive to do something besides like a brain activity so you know maybe it's not just work but it's playing chess um but you know he's always juggling like six or seven things and doing pretty much each thing better than an average individual could simultaneously and like yeah he just always seems so focused on everything that he was doing um I mean that was the uh I always I also thought that um some of the other employees were just always hopped up on Adderall and then you know there was one instance where I remember one of the uh higher up devs um told me after it probably was like man I don't like I didn't take much out of that I'm sorry I took too much Adderall this morning and so I always assumed he was always on Adderall and then later we talked about it he was like oh no that was like my third time ever taking it and you know I've taken it one more time since then um and so like Ryan is another example of somebody who never um never takes Adderall and would work crazy hours without issue um I unfortunately don't have that quite same ability um like to do the 9 A. M to 2 A. M six days a week like yeah that it helps yeah and then do you have your own personal guess of like who knew and when internally yeah because you're watching this and be speculating you knew and you're just like covering up for it people will say that like um you know it was only some only Simon Caroline knew and they were lovers and they were trying to you know pull off this game together or some [ __ ] um where do you think that boundary lies and who do you think was in the like in a Circle of Knowledge okay so there's a thought through this a number of times it's like there's a few different ways that I try to kind of dissect it one is are they doing this through spot margin in which case you can argue that the rules of the exchange were um poorly built or built in a way that favored a particular firm and so Alameda technically speaking was playing entirely by the rules and parking Capital there by the rules same as anybody else could do the issue with that is that uh you know at its peak there's like 4. 5 or you know and it's recent Peak I think in last November you hit 7 billion but um you know in the last six months or whatever the largest it's a spot margin Market got is four and a half billion um so if they were playing entirely by the rules that still doesn't work uh because how do you have a hole that big if the entire if you're the entire borrow and it's only half that size and then the other thing is like the margining and collateral system at FTX is it's very well designed um and so the way that IMF works is if you over collateralize in uh in a particular asset um the more ass about the more asset the more of that asset that you have the bigger the haircut and so like you know I'm done all right but like I'm not a crazy huge whale and like I think my ftt only got like 60 collateral waiting and so you know and you're looking at like the leaked balance sheets and stuff like that because uh the way that it scales it even if they had a massive amount like the collateral value of it wouldn't have been that big um and so then it's like okay are you actually touching customer funds and not abiding by the same rules that everybody else plays by and then you kind of get into the argument like I feel like that's a binary decision right like once you do that you know I just never in a million years thoughts about have happened because I don't know I've worked it a number of exchanges and I've been on the market making side and that's just not something that you do like you know customer funds or customer funds that's it um how many people could have done that could have done what could have made that call to say we're moving like customer funds are going from here to here like could account admins notice no you could say that the account admins could have gone individually account by account and checked the deposit withdrawals um but then because there isn't an on-chain transfer you're not seeing like the total size of things if it's adding up or not um from an internal transfer uh and like so you know I'm assuming if they're sweeping the funds to uh Alameda that would be an external transfer rate it's not just a change in the database on the FTX side it's like actually giving them the assets on chain um and at that point it'd have to be somebody with the private keys so multiple individuals like yeah and then how is that like not a system I guess you don't know and you're not a developer so maybe it's a stupid question but um like how is there not some check that runs on the exchange that says our user balances what we would expect yeah so this is um not something that I really checked but uh and speaking with people whose roles that it is to check they shared screenshots and it did someone did the fraud they patched up the query somehow to return false yeah uh so I don't know how those numbers came to be it also could have just been that there was you know issues around tracking that led to a disparity that wasn't caught um if you want to give the benefit of the doubt obviously the other side would just be that it's you know more malicious and fraudulent but yeah I don't know um I'm still let me check in on how this hack is going by the way yeah do that whatever it is we don't know and people are still asking us like what did you say about the beginning before we talked you didn't even know this was occurring like I asked you if you saw that the wallets were moving and you didn't know that so he just doesn't have a lot of information on that y'all um that's started well after he was there um the account seems to be wormhulling a lot of ethereum um like if you go on internal taxes in the last 300 and 15 minutes has received like 10 000 to Ether through Wormhole um I guess from Solana or something um I also see that the Solana and uh uh um uh another chain I've just closed accidentally um I'm also losing um having funds pulled um Kirby while you're sleeping a little bit uh I'm still trying to figure out the like binary decision so obviously the Gap in customer funds existed we found that there's a eight to ten billion dollar hole so at some time from somewhere money moved around and it came from customers and what you're saying is the process for that occurring only could occur via some kind of private key multi-sig or private Key Management amongst Whoever has that access so like I guess Sam and Gary or so I'm trying to think of like how else it would work and I guess like to do an internal transfer um like I can like to move assets from one account to another but there's you know couldn't do it nearly in the size of 8 billion like there's pretty small limits on that um and then I would imagine that there would be some more reconciliation we'll know what straws happen uh or to like actually take those you know coins off exchange but um I'm imagining that you're like just looking at the cold wall and saying like hey we need to do the assets to go to that firm or you know to Alameda um than it would be an on-chain transfer and like it would be something that would be done by those that usually manage that which means access to the private key so somewhere there's a list of cold walk like customer fund cold wallets not hot wallets where there's some true transaction that got to Alameda or got to somewhere like it seemed like there's Sam's slush fund of doing all this [ __ ] like that it's I don't it doesn't make any sense in terms of where these billions came from you know and like how the whole of actual customer funds became so big so like were they siphoned or was it basically the some massive wallet of customer funds so what y'all knew internally of customer funds was always misrepresented I just like I can't wrap my head around it yeah so that's kind of like where my core question comes in is you know is this something where it's like you wake up one day and you're like oh [ __ ] you know I just realized that there's this bug here and that leads to this huge gap but like so that's that'd be a pretty big issue that I really would hope you would catch before it hits 10 billion but then on the other side you know uh like it's all right well we'll start with a little bit and you know it's like you know 10 times over cloudwise by [ __ ] so it's fine and then because there isn't any issues there and you know you look at like trailing three-month average daily withdrawal volume or whatever you know you think you can do it up to a certain extent without issue and so you know just kind of get more comfortable with it and do it larger and then one day all of a sudden you have a ton of withdrawals you're like oh you know we overestimate our ability to redeemed and like plug the hole or however you want to phrase that and then it's like you know it was kind of a growing issue over time and then it just kind of like there's the straw that broke the camel's back or I don't know if it's you know you wake up one day and all of a sudden oh [ __ ] like I imagine you know that's what happened in mtgots like you know I don't think they slowly saw hundreds of thousands going missing and you know they didn't do anything I think it was one day they woke up or like oh my god that's way too much missing but like another thing that I have heard is just because the team was small and they bragged about that there was a lot of like bus Factor issues so like there couldn't even be very many people to do certain types of actions um and like the names that keep coming up are kind of some of these early Alameda transitions to FTX so like Sam nashad Gary uh Caroline like New Zealand's not enough yet no I know but she was on the uh she was somebody was on the automated side of this right like right yeah but the other three were have frequently been mentioned as like high level responsibility and just not there's all these questions of how small can The Circle Be Right like how many people at the end of the day could be responsible because this unless Sans just got away to just change a number in a database which you're saying like stuff actually has to move for things to happen so like something well no like he could change the number in any exchange can change a number in a database to whatever it is and then you're just running like um a very big fraction exchange but like the issue is as far as I can tell with Alameda is that the funds weren't on the exchange like they were pulled out of the exchange which requires you know yeah because they have to move out of the exchange they have to so it's not like change the number on the exchange and then borrow against it somehow right exactly um and you know like if I think about because everybody says like oh how does more people not know about this but it's like all right you know my job is head of institutional sales like on a good day uh I'll clear out my Telegram and you know the three or four hours after I wake up it'll probably take another three or four hours to clear out my emails and then by the time you're done with that you have you know maybe another hour each on telegram that have come in since you last cleared that out and emails and then you know you have calls sprinkled in there uh and then you have your actual work you know like uh monitoring clients seeing you know how they're doing with their volumes how they how we can get them to trade spot or spot margin or you know if they're not trading perps yet why aren't they trading perps to get their feedback on some rate limit ideas that we have and so it's like there's so much [ __ ] that you have on your plate to do every day you're not just sitting there and you're like oh well you know let me go take a look at our cold wallet real quick and like try to do some sleuthing here and see what I can figure out um and so I guess like if you want to apply that to some of the developers you could have a similar thing where it's like hey you

### [35:45](https://www.youtube.com/watch?v=FZzqChK4RXY&t=2145s) Alameda’s track-record

know I kind of want to build Sam says hey this small tool can you build it and you know you just knock it out in a day and like you go right back to all the other [ __ ] on your plate and you don't really spend too much time or pay too much attention to it and then that's the thing that kind of facilitated this um was there ever a time where it just became like it was weird where all the money came from like and because Alameda was doing tons of stuff FTX Sam was personally doing tons of stuff um did you ever wonder about some tight relationship I think one issue is that like I think people massively overestimate the sports deals um how much money they cost because like you know if you look at like Miami Heat deals it's about 20 years and 120 million or something like that and then these deals have an escalator in them so that every year is more expensive it's like the actual upfront or yearly cost of that isn't that high so people say you know like oh they've signed contracts for over a billion dollars in sports or whatever and it's like all right you look at it and the actual amount spent per year really isn't that High um and then you know like the Robin Hood purchase uh that where people were like speculating whether or not Sam was going to um so I was going to try to take over Robin Hood you know the way that I first heard of Alameda was when I was on the market making eotc side at b2c2 and I heard of these a bunch of vegan nerds that were scraping websites and just like crushing it and making a shitload of money and they just want to donate it all a charity and so it's not like you know once I got in I fell for the um you know fell for the hype or something like that it's like no the reason why I was interested in that team is because I won I saw how they executed on the OTC side you know like they really compressed spreads and I directly saw that um and then two like uh I'm not I'm being told this by other trading firms in the market that these guys are just crushing it and that you know they found a way to do the Japan arm um or try to you know do the kimchi Arab and stuff like that and like you know there's a reason why Arbitrage is our Arbitrage opportunities exist like it's never that easy but there are always some people that find it out um you know like I know a Korean firm that did the kimchi are and when I asked like how the hell did you get your bank withdrawals out like well to be honest we never knew what the problem was every time we submitted one they just sent it out and then so they were making like millions of dollars today on that and so it's like all right you know that I do know that they're big Traders on all these exchanges I know that they have a very well-built OTC system that does a ton of volume that is causing us to need to compress our spreads um it's like I'd kind of seen their performance already in the market and when I joined fgx you have no idea how much impact that is and then you know you also see Sam being very bullish on Solana when it's at three dollars and it pumps up to 250. I have no idea how much of that he's taking off the table or anything like that yeah like from a personal perspective or something personal or you know this is he was still the um the CEO of Alameda at that point so like I don't know if that's you know I mean Adventures trade or or you know exactly what's happening there but it's not um it's not a conceivable to say like they could have taken a billion dollars off the table slowly into some massive liquidity yeah and when I uh after p2c2 I asked a lot of people um you know where should I look at joining next and like CZ John Carlo uh you know Dan from Circle Bobby from Cumberland like dude I you know I asked the whole street and every single person recommended uh suggested I go speak with Sam and you know it had some other issues that previous companies like you know started offering me Equity at okay coin of course I was young and I was white and like I worked with Chinese company I'm not going to get it uh bit fanax similar story but then bit snacks got hacked so like again you know that kind of sucks but like all right whatever b2cito is the first employee I barely got any Equity so I was like all right you know then the next place I want to go I want to make sure that I really look into who I'm doing it with and make sure that it's somebody I can trust and not a single person had anything bad to say about Sam and I talked to a lot

### [40:28](https://www.youtube.com/watch?v=FZzqChK4RXY&t=2428s) FTX hacked on-air / Speculating on who the hacker could be

of people um so you know when they're saying that he's crushing it on the trading side I've experienced it myself on the OTC that's the b2c to how tight they're able to quote their spreads like yeah you know all right add it up so Zach has just tweeted that multiple former FTX employees confirmed me they do not recognize the transfers for 383 million dollars and one guy that previously worked at FTX has also said that to me on telegram I don't know how reliable people like previously worked f-tex info is about what's currently happening um but the on the address nothing else has happened for um about 15 minutes so let's just keep monitoring it and um I will interrupt if anything again interesting happens um join a phone call after like yeah but you like there's a bit of a hack happening yeah everyone will be out of here but unless you meet your microphone yeah mute your mind yeah no I would I'm going to mute but if there is a hack of a microphone or a pack of a of our wallets I would like to know that so yeah mute yourself and Kobe and I will question what the heck what is going on let's have a look at chat um chat seems uh slightly below average intelligence today and normally the average is quite bad um but um apparently there's a new address receiving funds from FTX can someone post the new address in to the chat please so that we can um new wallet no it's going too fast new one there in terms of what we're trying to accomplish here y'all it's purely like just trying to understand what in the world is going on right like not in this exact moment just but by talking to Zane in general almost nobody is able to proffer like what happened two days ago you know like what's going on from an employee's perspective former employees perspective um and he was there so we're gonna listen that's all it's about so there's another address but it's only doesn't have a ton of money on a uh um but it is just withdrawing loads of weird stuff from FTX like uh you'd think if there was a uh if it was a bankruptcy proceeding you would start with like hello we are consolidating assets yeah like you say something uh Mr Enron who's in there now is he in the Bahamas does Andy know if that guy's there this supposed news no [ __ ] clue um what's going on didn't answer my call um all right uh what is Foo whatever he's called FUBAR or whatever what he's normally got tweets on the occasion I like screw bars is he saying any [ __ ] no just what we already know so um loads of funds leaving FTX while they're swapping tether to die um moving everything into one wallet um I guess you saw like if you're a hacker you stop tell her to die because it's more sensor resistant because if you have tether can lock a particular wallet or a particular um you know so if you have some funds on uh your address how they can lock that address whereas for die I guess the underlying pull for all of die would have to be locked I think um so where is this oh there's a bunch of slippage on the trades um I mean is there a tweet from FTX yet um I don't feel that I know the answer uh 47 minutes ago which group companies have not convinced um oh it's clear it's Clarity on who was or was not declaring bankruptcy right um all right I guess we just keep waiting if um fuba or Zach if anything else please send me a damn because I uh apparently 100 million of FDT just got transferred from FTX to an unknown wallet as well um and some people saying that if they log into FTX uh they have a balance of zero now FTX or FTX us I don't know this is actually this is interesting so it says in addition while not noted in the earlier release the following entities were also not included in chapter 11 proceedings which is FCX Capital markets embed Financial Technologies embed clearing LLC uh by County Road your FTX us or fdx. com International zeroed um in terms of what I'm saying oh people are saying both I'm not sure I've only seen one FTX us and something's weird put out a statement don't let people just go off their worst fears give me a sec yeah the uh I find it fascinating the same doesn't work there anymore but he's like extraordinarily pissed off about how things are being communicated like well this stuff impacts should impacts you my impact show I know meditation stuff how people see you like um no I understand that like you have a not an obligation to his previous clients anymore but he'll feel like he like has that reputation not completely I completely get that I just yeah I um I was gonna say uh the embed component here holy [ __ ] what um uh extremely large amount of money is now in uh so the wallet that had nine million has got now 153 million in it but it's mostly FDT and serum actually so it's not well so maybe these do these wallets line up with the um the previous definitions of like illiquid semi-liquid and ill and liquid I don't know are they condensing them into those um uh those buckets uh it also doesn't make sense why they swap to die and start dumping stuff though actually so yeah there's it's there's some really weird stuff going on um so embed not being in the bankruptcy embed was an independent like clearing firm it's basically U. S regulatory stuff that you FTX us acquired after Terra Luna blew up but before all this it was in June and the value of those Acquisitions was very high is what I'm bringing this up for and it's not included in the bankruptcy stuff um so in terms of like there's a lot of dancing here in terms of like who's being included in these and who's not um saying we can't hear you if you were still on the phone um yeah so they're carving out specific entities from these bankruptcy proceedings and it looks like it is in a very strange way well the FTX Australia one I read something it's because if Australia does not have like any digital asset custody laws so they're not legally required to keep assets within the entity or something like that so I think it's been handled separately um I don't know if text digital markets is or FTX Express pay um I guess Ledger X is a ring fence they said they had all customer funds or something on Twitter what I want to ask Zane about is he said before like Caroline was not FTX but in these proceedings obviously Alameda and FTX are all going into bankruptcy together so I want to ask a little bit about um also FTX us whereas like their customer funds were supposed to be refined now we're seeing customer funds from their hot wallets being Consolidated you know like with these international funds which is very strange um yeah but the US side of things was operating independently in terms of like withdrawal capacity and stuff and um it's it makes me wonder if there was like a uh operational budget like slow drip out of international to make it that Gap got closed um someone there's a tweet that says um uh from a former high-level FTX and slider I think this has been inside job but there's no way to have this much root access so quickly there are too many different wallets and products to pull this off at once saying you're uh if you're talking to us if we can't hear you we can't hear you you're I think you're looking for his microphone your headphones I have textual zero balances I don't have any muted um yeah we still don't know what's going on is the point uh I think Zayn must be reading some stuff or looking through website stuff it just seems way too sloppy to be a liquidator like if you look at the 3ac liquidation how that's sort of played out right like um uh hold on hold on someone said look at the wallet that sent the new wallet money it's an old Alameda wallet can someone send us like uh FTX ftx. com also halted trading 40 minutes ago so there was still trading occurring on ftx. com but they halted it 40 minutes ago um yeah but if you look at how the three AC liquidation and stuff happened it was not as Rapid or sloppy as this like yeah this is weird tons of slippages all balances have been zeroed on FTX International I'm not sure if you're trying to talk to us saying but you gotta select your mic or maybe you're talking to somebody else still um okay now we can hear you yeah so it looks like all ftx. com balances are zeroed from everybody that's talking to me about it who [ __ ] knows what a [ __ ] week Zayn I have a uh a different related question in terms of like I guess at some point in the past week the withdrawals were delayed and there were you know started to be these hiccups uh started to hint towards there being real problems but were there other times where there were withdrawal delays like I'm sorry to interrupt you Ledger um The General Counsel has just tweeted um well I think it's a general counseling this is a fake version of the account perhaps yeah is it underscore Ryan underscore Miller um investigating abnormal is with wallet movements related to consolidation of FTX sponsors across exchanges on clear facts as other movements not clear we'll share more info as soon as we have it um is this the real dude yeah no it's him I'm not getting it's all darted or something nope so who knows man the um who would have access to these keys we can't hear you gotta pull the headphones up I have no idea uh what's going on with the movement of funds I just went downstairs and asked our other employees they had no idea one of them looked on social media and said that she was seeing a rumor of Sun's being stolen and maybe there's more information on slack actually I can't do you know how many people have access to systems even still like are people who are still there who are what about when you left like were there 10 people working on why isn't this tweeted from FTX official yet does Ryan still work there like okay um I mean what the [ __ ] I mean if this is actually a hack right if someone's stealing These funds okay then I mean if this is actually a hack then maybe that does explain the 10 billion dollar hole everybody's wondering how the [ __ ] it got so big and it's just because we've been getting hacked the whole time and nobody knew I mean because if they have the private Keys now how they not before if we're using freshly made private Keys how the [ __ ] would they get access to that if it's an inside job surely it's like um like uh like you've turned a bad situation into like life in jail if this is an inside job right surely yes I yeah I have no idea what the the penalty is for anything like that but like [ __ ] hell talk about kicking people while they're down if somebody did that Jesus you cannot be anywhere still like oh we have 10 million hole and then all of a sudden actually we're stealing more from that as we try to return it I don't know I have zero I there's no way in how in my opinion this is an inside hack because one the amount of scrutiny that would all be already be upon you you'd have to be the dumbest person in the world to try to steal more right now like you're already going to be put under a microscope for the [ __ ] up that just happened you have the balls to go try and do more if somebody I don't know just I'm saying this from what comes top of my mind but wouldn't the only people that have that potential to do it without that extra scrutiny be Sam directly with like how he is under the most screen would he not be yeah but if like it may be his logic is like well I'm [ __ ] I might as well go on the Run with some money like for him it may be it's all over anyway and this is I don't know surely he's also not thinking straight fam in general is like more than thinking five minutes ahead and not like that'll get you to the airport in Bahamas it's not going to get to you're on an island where are you gonna go I mean maybe is a doc Theory but um other people that have access to the private Keys physically safe because if you were a person that had funds your net worth stuck in FTX and you thought you weren't going to get it back and the Bahamas is not a short flight right near here I like been surprised how much have been kept in the dark so far so like maybe that uh maybe that's the case but like I can't imagine that would be it and there's also security at the entrance to the I don't know if I can call it complex um the community and like they wouldn't let me in the other night I had to get an email from uh from Ryan to let me in so like I doubt that's the case wow so you know how it's like 80 maybe you can probably bump that up to like 85 percent or something another FTX maybe that's the problem sorry what were you saying Legend another FTX employee uh messaged me that they had reported the hack and nobody knows what's going on I think this person's still technically employed there so if they have internal access maybe they don't know what's going on internally as well I can't I mean I it may be external actors I can't comprehend how this happens outside of key personnel how does that how does the whole exist some form of inner circle that has pulled the wool over team members eyes maybe they did it by accident at first and then it got worse I don't know I can't I cannot see anything the amount of scrutiny they are currently under like but they're I mean it's clear they don't give a [ __ ] about that yeah he went to Congress to like lie to the face of if Senators so unless he did not know the whole existed then he already had this complex that was unexplainable to a normal human being because he was saying we need regulation and then also saying like knowing that they had this whole of customer funds so he somehow like he doesn't know no one knows or I don't know like you know what I'm saying [ __ ] with me at this point like are we no like whoever this is they're just following me around like torturing me with this [ __ ] mother okay I mean do you have any tweets on the size I mean it's hundreds of millions so who cares half a billion ish wait half a billion yeah so basically all probably all yeah what was it when I tweeted it was an 800 900 million yeah 190 million in liquid assets 500 million breed out of 390. out of it would it be pot liabilities as another question is it possible that um ftx. com like servers backups things like that are being erased and ftx. com balances going to zero reduces the audit Trail internally would an outside would an outsider and most exchanges systems work is that or like most databases that would handle that work because you can't delete anything you could only override it with like a new entry you can only update it and so again unless you have all the control right but then that would just implicate you a hundred percent and so then there's no doubt that it's you or you claim some form of ignorance I don't know I'm just saying like either it's the most thorough external cleaning you can possibly imagine or it's absolute key man fraud come on salsa tequila said something that is just I I'm gonna just repeat it because it makes sense uh don't visit FTX don't open the app don't update it like if there's any sort of malware fishing stuff anything like that don't log in just be very cautious there's not more information shared elsewhere internally either how does this keep getting worse I mean it's impressive at this point it makes no sense to for a hacker just cares about the money they have someone has control of internal systems and keys funds are moving and data internally is moving data is being erased this feels to me like a digital version of shredding all the [ __ ] before you leave like yeah I cannot comprehend any other outcome other than Sam or someone who has like control of his actions is forcing this who has key control of the entire application there's I see no other outcome I mean like why wouldn't that same scenario reply to a hacker and like I think the Assumption of the zeroing balance is out is incorrect the there's considering the other problem we have this kind of a silly statement but maybe there's some reconciliation between balances that are held in the wallets and the balances that are displayed on the site how would that lead to a 10 billion dollar hole not being discovered on the other hand I don't know but uh another wallet there's another wallet with a about a 134 million in it it's mostly bobber or Boba token don't know what the [ __ ] that is um CRM tether gold Euro tether um Matic and stuff and it all is being withdrawn right now so like walk two men one men fifty seconds 30 seconds 10 seconds ago um uh uh so although although this um okay no Maybe not the chat's suspecting it's the government I would believe that I believe anything at the moment who did I piss off man I I can't speak for anyone else but um I feel like you've just picked up a raw deal my gut at least uh I haven't I have no uh personal concern for your innocence be put out where they put out it's only done once I provided the wording how the [ __ ] is there this little communication this uh Zan I'm not literally everything points to Sam or key actor it's got to be a internal activity that's official how have they not put out a statement from FDX official apparently uh this is I'm not looking up before I say what hold on the one account that we put it out on has like 2 000 followers 4 100 followers yeah and we have another account with 760 000 followers silent you have another account 969 000 followers Sam silent um Avi Eisenberg on Twitter is claiming credit I think he's joking right and I hope he's not foreign but like I'd much rather prefer a known than unknown and then at least you have some kind of yeah he was he surely was trolling he um repeated Sam listen normally I will opt for um like uh favoring entertainment um however I wonder how fair it is to keep Zayn onto this yeah episode while this happens and he has a meltdown not that you have anything it's not um you know I yes I agree we should let Zane like have time I also just want to say like for the 99 or more of FTX employees that there could have been some degree of oversight or uh ignorance or wishful thinking or whatever but I believe that the vast majority of participants at FTX are and were innocent through this and I hope that you all will be encouraged that this is not your fault right like you you deserved better someone failed you external actors internal actors at a bare ass minimum in their response but probably all along this hole could not have been created and held secret without the someone knowing they failed you but you did not fail in your job like you need to look at this in a way that you can learn and that you can carry forward don't lose your hope don't lose your uh you're cool carry on you know like there is a new day you are not to blame you were a victim and you're a bigger victim than many I know most of you lost your uh net worth or a significant portion of it I feel like you have this reputational loss and you don't deserve that um you know all right Legend you wanna stay on for a little bit let Zane go yeah so guys I appreciate you kind of trying to be nice I don't have access to slack our Twitter there's nothing I can do yeah anyways yeah um let me hop out I don't know if you guys want to do this again um I'm happy you need some rest man you

### [1:09:15](https://www.youtube.com/watch?v=FZzqChK4RXY&t=4155s) Zane leaves / Comparing this to Mt. Gox

hadn't slept that leads to another [ __ ] hack and you'll have the perfect Alibi once again no one's ever gonna suspension now all right thanks guys hey dude thanks for being with us what the [ __ ] man I don't know sorry I got everything screwed up again literally chat was a combination of calling me an idiot and saying I was saying the right thing there but just what was on my mind I'm sorry if it if you don't like it I don't care have you ever experienced something anywhere near this insane in crypto I don't know man like um someone is saying um there are some ens domains like saying [ __ ] SPF and [ __ ] FTX where they added after the hack was known about or were they before um I don't know man uh it wasn't Mountain blocks this bad um Mountain gox was kind of fell a little bit similar in a way but um the scale of it somehow simultaneously felt bigger and smaller right it was bigger because it was a larger percentage of the entire Market but smaller because the numbers were not so insane right so he it wasn't a 10 billion hole sorry I need to cough a little bit you're good yeah so it wasn't a 10 billion hole but it was more of a percentage of the entire Market um and it played out a lot slower like there was rumors for longer and there was speculation for longer and um you know uh and [ __ ] like that so um I guess it felt similar but it took longer to kick in whereas this has just all played out in a week and just seems to be like just getting worse and worse and worse whereas gox was just like one bad outcome and it was taking a long time for it to be revealed um a lot of people are saying there's a it's an X FTX um employee uh has apparently identified as the hacker is that true or am I getting trolled again I can it's so easy you never really know yeah no matter gox had more uncertainty so it was like I remember there was you know people were trading FTX balances the other day for like um 10 cents on the dollar um yeah there was somebody inside doing that yeah well it was you know it was potentially through this Bahamian withdrawal loophole and you could um uh buy or sell and nft to get it moved across or something um but like people did um people did that on Mount gox but it lasted for much longer and someone set up a uh a website where you could like use the gox apis to trade what were called gox coins at the time which is the equivalent of like a FTX installment balance um and someone had the time to build that website it had like [ __ ] um deposit and withdrawal and all that [ __ ] and people used it for a long time whereas that lasted one day for this one it was just after X is potentially insolventus is going to sell their FDT balance is buying FDX balance is pulling out we're insolvent bankruptcy and now it's so fast um within the space of uh I don't know how many days it's been maybe four um um yeah apparently FTX app is requesting updates so everyone should delete the app immediately and don't update it um I don't know if that's true but honestly at this point you can't don't even um risk it I'm literally deleting it right now I wonder if people have bank accounts um uh links to FDX accounts um I guess you can't do anything about it now because um a lot of people I wouldn't log into the website anymore no don't do anything I had hundreds of messages last night and this morning of people with pending ACH withdrawals um yeah there's lots of bank accounts attached there's lots of kyc information there's all kinds of stuff if there is like a root level compromise I think it's also um also difficult because it now if you get an A legitimate um email from FTX like it was from the actual company outside of companies or whatever who knows if that's actually a real as well right like I until um until there's some like Clarity on like what the [ __ ] going on it's not even clear that you could um you can trust Communications from FDX no yeah I don't think you can trust anything I don't understand man so okay you remember uh bitboy's been right about the downfall of Sam and he said earlier today that something else was happening today you know he's claiming on Twitter that Sam is the one that hacked the remaining assets guarantee it's him he says he's done this before see my previous tweet I don't know what that was about well listen bit boys probably right it probably is some I mean like I said his name is the most like he's the one in control the thing is if I knew that something was going to happen tomorrow he probably should have said that one in advance um rather than saying something's going to happen and just let them do an entire hack but anyway um many things like I don't disagree with him on pointing the finger there there's there are a few things that you brought one up the other day that we're speculating obviously um you brought up is Sam Chef Nomi and I think you're joking and yet at the same time maybe you weren't but well I said the writing styles are similar right they both wrote These apology threads and they're basically identical threads um but my point is if you could have someone verify that level of uh I don't know what we call psychosis enables everything else is on the table if that could possibly be true just from a pure perspective somebody says uh Nomi was the CTO of band I don't know either um I mean the only thing that I think has a potential but like if this is an outsider I think um

### [1:17:35](https://www.youtube.com/watch?v=FZzqChK4RXY&t=4655s) Recapping the series of events / Internal Permissions

it's more likely to be a dude with a wrench than it is to be some crazy root level exploit yeah um zeroing but I think it's just much more likely to be a Insider um FTX official retweeted Ryan's tweet the other thing is like I wonder if People's data is still safe no can't be yeah which is hilarious because Sam was pushing to kycd5 and the reason you don't want to give these people your kyc is because your kyc just ends up in the hands of [ __ ] the dark web so that's cool also Sam's I mean not that he would but why wouldn't he say anything now if he's in if he's truly like not in control not responsible you know what I mean like what who are you still responsible yeah maybe he's not I'm talking about right this moment yeah he's not a CEO anymore for sure but like a lot of people are following him looking to figure out like no one Falls Ryan um people are still wanting to hear what the [ __ ] is going on and he should still be working to figure it out um do you have an article in routers let's say he's asked about the missing funds bankman um responded question mark question mark serious that's like yes you see the article I'm in a loss man like I don't understand how this the escalation um a week ago this was CZ and Sam ego arguing everyone's taking the piss at how I pronounce root it's against routers is it routers Reuters writers writers unless you're British rooters that's [ __ ] up routers mates Rivers there's a lot more wallets apparently too like a oh that's fine who [ __ ] knows this is multifaceted though because it's wallet balances it's app root level website it's everything it's the nuke it's the freaking it's the Shred the paper at the end of the movie and blow the building up yeah hold on block fires Bank just suspended activity on their credit card I don't know what that means how can this hat I mean how can this happen with an entity that gets that big well I guess in your um if you're if like employees really did not know and you know it's a startup right and they always bragged about having what 10 Engineers or something yeah or 20 Engineers um so I don't imagine there are a lot of systems in place like I used to work at a startup Bank um and went from a handful of employees to thousands of employees and um after a certain point there was such strict internal Tooling in place that people didn't have like permissions to do [ __ ] you couldn't look at and everything in people's accounts you couldn't you know do whatever um uh uh unless you were specifically required to work on that stuff I doubt that was in place for a team of 20 uh um uh a crypto startup so um I guess and uh if you keep your employees in the dark about this [ __ ] and then you know Zayn lost eight figures right of his own yeah money or something or if you say negative yeah worked for negative eight figures because he lost all his own money he lost his FTX equity and um the stuff he bought and all that [ __ ] so um if you have a lot of people in the company that feel betrayed by you um perhaps is possible that one of them just goes I think I've got access to say [ __ ] you in return um but I don't know apparently there's a forced update on the FTX part yeah so get rid of it just make sure I'm repeatedly saying that um who knows um this I mean and this sounds insane but we know state level actors do stuff with crypto hack stuff with crypto this was a Target like this would have been a logical Target for a state level actor like outside of the U. S inside the US it would be uh more extraordinary outside of the US it's more mundane but like yeah Russia North Korea whatever pick your enemy well let's say CIA I know that's what I'm saying inside more like I'm not going to say that as an American yeah I mean um I would rank inside job number one like a Vengeance um I would say wrench attack on people with keys number two uh like people physical yeah like like everyone know like the address somewhere as I got leaked um the FTX offices obviously the people know where they are um like someone that has lost their entire life savings um and you know potentially someone that lost money that they borrowed and now owes other people and nothing to lose could just pop over to the Bahamas and go um I want my money back um who knows um and yeah maybe State who knows I mean everyone's saying this [ __ ] about a dude called Gary Wang I don't I haven't properly read that theory um Gary is the CTO about uh Alameda originally moved to FTX he's a key man well the CTO would probably have root access to everything won't they yeah so I I've heard from FTX employees that Gary had the most significant like bus Factor at the company I presume next to or maybe even in addition to Sam yeah like wallet control whatever I can't keep up with Chad but no me neither there's the uh Alameda deck that went around and it has the employees in it the key people employees can you explain bus factors to chat everyone's saying why does Elijah keep saying boss factor is it something to do with bossing no it's not it's not something to do with bussing um bus factor is where one person is so pivotal that if they get hit by a bus then it's over that they're so critical to the operation that um the operation cannot continue I feel this hacker right um or Insider or stay actor or whatever if you're the person that has got this FTX money now how much oh wow how crazy is that is Andy Kragen still there I don't know who Andy program is but Gary and nashaud so the inner circle of sorts Sam Gary

### [1:27:25](https://www.youtube.com/watch?v=FZzqChK4RXY&t=5245s) What do hackers do with the funds? / Sam Trabucco

Andy I'm sorry Sam Gary nashad Caroline stayed at Alameda of course but the other three went to FTX yeah anyway back to my question if you were um if you're the person that has these funds now whether you were The Insider or the um um whatever uh how much of this do you think you can actually get like this is probably the most um All Eyes On crypto event in history it doesn't seem like you're the financial gain can't be your point well I mean in some way it sort of must be because they're dumping everything yeah ethereum yeah that's true so like in in like so clearly thinking about it and you know they've swapped tether to um to die and stuff where a little bit of sensor resistance um I have two outcomes both are absurd but surely they can't expect to get you know the dude that hacked Silk Road got caught finally and never used any of the money it got quite after 10 years yeah the guy that um uh sorry the pair that allegedly hacked bitfinex um virtually never uh um yeah never got never spend anything yeah so like maybe if you rug like uh like a a DEX or something or like you know the Anubis you remember the Anubis thing with beerus and so on next 60 million or whatever um like maybe that person can get the funds out because the amount is much smaller and there's less eyes on the um on this thing and it's easier to uh you know go under the radar loads of other shit's happening but this is like every regulator and law enforcement um entity in the world is going to be watching these wallets forever um is 300 million small enough to mix like in a you know what I mean like if you get it all to eat or something can you mix it can you don't have a lot of experience with money laundering large amounts of ethereum thankfully but um but if like since the tornado sanctions I imagine the tornado volume must have dropped like 90 or something so it's made it much less useful at all for money launderers perhaps um and even if you manage to wash the ethereum right you still have to turn it and put it into a bank account somewhere um so how do you explain where you got your 300 million dollars from like maybe you go to a jurisdiction uh in inside job State actor with an Insider yeah yeah if it feels very both but I mean I'm like I'm Peak uh conspiracy at the moment so um someone said why are we sure um uh it's not a liquidator we're not totally sure it's not Liquidator but the general counselor um FTX us said the unidentified transactions and um everyone's balance has got zeroed out and um they're doing weird [ __ ] like swapping to die dumping stuff updating yeah dumping stuff for really poor slippage so um like I think Liquidators are supposed to get the best execution possible maybe you can say they're incompetent but it would just seem surprising that on day two of the Liquidation on a Saturday they just start using one inch to Mark itself um I'm being told that state actors could accomplish mixing with this amount of money they do it with more and on other chains that both stay activewise do it wouldn't they just call let's go I don't just leave this one alone don't they have god mode on the laws well unless I was about to say if it's on the uh the internet then they're using it right now oh man I don't know dude what are your thoughts on uh do you think CZ is like manner maybe I shouldn't have like did you think he sees it as a like a very peric Victory um I don't think I think I feel like CZ would as much of a kind of Ruthless businessman he can be with a competitor I really do feel like he uh there's some part of him that just really cares about the ecosystem you know customers whatever in a way where this is much too far for them yeah I also think that he's seen so many blow-ups right he's been through every single one longer than I have and he's seen it recover and for schemes like this they don't sort themselves out right like they just get bigger um so if you hadn't done it this might have become an even bigger problem in um in the future so um I'm sure he's pissed off because of the damage to the industry but like I reckon he wishes he did it earlier rather than like not doing it at all but yeah I'm sorry that's what I was trying to get to uh if this was inevitable then might as well get it over with type of thing but that's still it's so fast like if it's gonna be these things happening this fast have such a gigantic impact on the ecosystem yeah what do you think about uh Trabuco was he just like unfortunately timed or new and got booted on the way out and confident he wasn't part of the early team and then convenient leaving time there's so many um oh you should probably delete the blockfolio up as well I just I thought of that I think it's just the FTX app now uh oh yeah it became the F text basic didn't it yeah I just searched for it I don't have it so um um hold on Zach xbt is messaging me he says the tornado anonymity set is too small for that much um money sorry what did you say before I got distracted by uh what's going on with Trabuco and all this like 120 oh yeah [ __ ] um so isn't he Sam's childhood best friend SPF childhood best friend or something yeah I believe so um but he wasn't part of Alameda until later yeah I mean um his claim is that he left in April um and like officially left in uh uh was it June or august-ish when he made the statement um but his claim is that like he stopped from doing any work in April um someone sent me like their DMS with him asking him about it um and this was his explanation um so I think he exists in his weird like sort of if you suspend disbelief a little bit this like period of plausible deniability um that I think is really really difficult to believe um but I can't say 100 that he knew right like you could say it's maybe 95 that he knew or 90 something or did he suspect and didn't even admit it to himself you know like there's a range yeah or suspected and queer and didn't tip off which is you know maybe as bad as well um I don't know and he uh he got out of a weird time where you can you can say it goes either way but due to the scale of the fraud you lean towards having to know he was the coaster of our maida um if surely they weren't just like making money hand over fist until April he left to buy a boat and then suddenly they just lost everything yeah something in the space of a few months and then he didn't check the books before he left in August and he's still an advisor there was also other times of um pain March 2020 I had a message at saying that there were withdrawal delays in uh with the code crash uh when we close to when we had Trabuco on May or June 2021 huge crash like if there was a hole create it could have been created in one of those moments like could this like oh it's innocent now and we made it up but then again you're creating the optionality who knows um one and this is all this is speculation but I wanna I wanna wish the best for people but somebody here is a bad actor somebody and um a lot of people are messaging us like don't call it a hack all you're doing is making it easier for SPF or others we said from the outset throughout with Zane on and since then like this makes the most sense if it's inside key people are doing some form of cover hack run thing but this is an exceptional situation where we do not know the facts we just do not oh God did the people come out a people oh I don't want to look at it it's gonna be like a goblin looking [ __ ] SPF with his dick out or something do you remember when he used to make these like sort of like ethereal beautiful things and then he just started doing [ __ ] dicks on top of dicks yeah like Photo realistic dicks and stuff I don't know it's not so bad oops I better move myself okay fine he's just posted a photograph of Sam yeah I mean does anything surprise you in crypto anymore um I mean I was a I'm surprised by this I was surprised that FTX was insolvent SPF would go just egregiously lie to people I'll be surprised if Sam traps didn't know like so yeah although I do think that um the five years ago version of me wouldn't have been surprised I was much more like paranoid and skeptical and less trusting and then I guess as my optimism and like uh belief in the industry grew I thought there were people that were more aligned with how I see stuff I guess I don't know um which I think there are actually but I just think that they're um you know like uh like Kraken for example and j-pal and stuff I think they're very aligned um but they just yeah um this is by far the most insane Saga um that I've think I've been through but I also again like I've been surprised by it and caught off guard by it so maybe it feels more insane whereas gox and everything else I was kind of like that sure obviously this happens that makes sense to me um so they didn't feel so insane perhaps but maybe they did for other people um I know this is one type of insanity but there was another story today about it's just like The Echoes of previous Insanity so it's that 20 of

### [1:41:50](https://www.youtube.com/watch?v=FZzqChK4RXY&t=6110s) Hackers set up a Multi-Sig / FTX App tries to push an update

crypto. com's customer funds are just Shiba Inu 20 of people that's what they did they were like you know what I'm not missing the next Doge I'm buying Shiba Inu and then they held it until November of 2022 and that's still 20 of crypto. com's customer funds is Shiba Inu that's what their intro to crypto was so someone has just tweeted them the dude from um I always think he's a meme account include called Doge Toshi or Doge toshio ever but he's actually just like the director of research at the Block yeah um he uh he's tweeted that wallet two moving more funds so there's a multi-sig somewhere to moving to them this though so sorry um there's a multi the hackers have set up our exploiters have sent up uh multisig okay so it looks like there's um a multi-sig of all the stolen funds um so this person's thesis is Whoever has access is multiple people that have access to this stuff and they don't trust each other um but why would they pull it then well they had to work together all right so it's now a bunny and Clyde's story Caroline and Sam have set up a multi-sig they know that they can't get the funds unless they have each other do you know how heavy this regulatory Hammer is going to be we are so screwed yeah it's like a hammer of Thor uh [ __ ] you know dude um this moistic Arc is kind of weird right yeah uh that's strange to take their security seriously I don't know Zach's tweet new Zach welcome to um in the FTX Telegram um the dude that was the guy that I introduced to Zach who is Zach's original source for this potentially being a hack has posted ftex has been hacked all funds seem to be gone FTX apps are malware I delete them chat is open don't go to the FDX site it might download Trojans DB tweeted fdxa they were officially hacked so if they're saying they're hacked it's either inside job or hack right uh well the options that we mentioned are still the ones on the table inside job hack State actor somebody surprised ftt is dipping under two dollars it should be zero cents like you dump out the milk carton it takes a while to empty but it's definitely gonna empty so this Ray dude who is the official FTX um statement um I've been chatting to a little bit the he's the dude that withdrew his funds and then sent them back uh he's called it was called like El Memento or something okay um and when withdrawal started going through he was one that like withdrew it and sent it back I don't know how reliable a source he is to be honest um but he was the one that first speculated that this was a hack and told me and Zach and um sent us some links to Center Paulo and we connected him to parallel and binance um I don't think I might try and boot up a clean machine I've got a new clean laptop somewhere that I might try and boot up and connect to ftx. com and see what's going on um this person I don't think they'll care if I say this uh Taylor from metamask now said I've looked at a magnificent amount of hacks and never once seen the hacker set up a multi-sig never once it's just like just a new Ocean's 11. iteration you know my uh I told my wife this would probably be about two hours if she's still awake when I get upstairs she's gonna be like yeah how'd it go oh you know it's fine good night this Live Hack we live in the dumbest timeline the chat is upset that your clean laptop your clean computer is a two thousand dollar MacBook and he's got two I don't know I use I don't know how to use Windows not even the right left uh oh I can't keep up I'm sorry foreign DMS tips all right Taylor says it has Vibes like lulzak lol SEC or anonymous rescuing the funds or something maybe a little sick what's in that they're one of the hackers hacker groups like they think it's funny foreign might be FTX um putting some funds safe and the first address could be the hacker um because I so they see it happening so they start moving more exactly right like the first address could be the hacker or the Inside Job personally I'm just going to keep saying hacker even if it's an inside job person I mean Inside Job alsoever the thief um we gotta name them and the other addresses could be FTX like cycling out the wallets and setting up a multi-sig um for them that could make sense to me I'm going to say some names that are even worse than token talk what about Friday Night Lights Out is that bad you don't even know that we we're renaming the show no I'm naming the Hat oh all right give me a name ideas maybe we should rename the show but also change the maybe topic maybe we should just stop so the market could bottom are we cursed well I mean the hack to begin as soon as we went on I can't literally as soon as within the moment we pressed live yeah maybe it's you it's a good cover-up good Alibi oh I was just streaming fed TX phones on TRX is that right yeah all right apparently going multi-chain here uh if any of y'all work for centralized Bridges maybe keep an eye out foreign multi-sig being white hat makes sense someone says I think that makes sense as well bro didn't they host like a really big party in the Bahamas not long ago it was like Katy Perry there dude now she's cursed she's happy top down FTX Katie yeah and the 2017 cycle just with her nails um how much TRX has moved uh 20 million dollars a TRX has moved um y'all please tag us on stuff that's relevant foreign don't think so maybe everyone went to that Bahamas thing and I was pissed off that I didn't get invite I was like you wouldn't know it no no I wouldn't have gone but I was like why am I not getting invited you know what I mean it would definitely not have gone because I don't go to any anything in real life but I still want the invite we still got to do the ceremonial like do you want to come because we like you to be there and then I can say no um but um yeah never mind maybe I avoided getting the uh the Katy Perry curse do you think um we're gonna get another Sam thread tonight I don't know dude I like how he said we're going to improve calms and then literally didn't say anything else since the Enron temporary CEO is the CEO of FTX right now yeah Roy or Ron or something did you see the enron's trading platform at the same tagline as FTX like built by Traders for Traders shut up yeah well they had oil trading thing goodness I just saw a screenshot of it and repeat it as fact even though it could have been fake thing that was made up um apparently one of the three signers for the mortise contract was funded by binance um like not no no not like funded by the government exchange CZ go check out those wallets yeah um I wonder if that one's white hat the dude who I said is maybe not a reliable sauce just said how can I not be a reliable source I'm literally in this group pulling real-time developments and they spawned my name and posted Pepe's at me I mean look dude I don't know what's going on I don't know who to trust though so we'll just read it off Zach [ __ ] can you invest um can somebody know who's smart come on the show do we know smart People Mate we're in the crypto industry oh good we're tracking private jets again yeah I just saw that as well people are on flight radar or whatever it's called yeah go and look at this private jet leaving the Bahamas but shouldn't that happen frequently well it's Bahamas there's gonna be a lot of private jets there I don't think we want Zach to join the show we need to protect Zach uh I had a video call with him once and he's got like a [ __ ] visual filter and a voice changer wow

### [1:56:30](https://www.youtube.com/watch?v=FZzqChK4RXY&t=6990s) Speculation and banter / Will there be a movie made out of this?

bro all my mentions now are just like my name being tagged and I don't know actually why it is uh what's this are we gonna publish this show I mean why not man our content quality is incredibly low we published the one with the like actual fraudsters on it um so why not I realized that the reason I wanted though Quan to come on was because I was like [ __ ] dokon is a person that caused all of this yeah but then when he turned up I was so stunned that he actually just [ __ ] came on the podcast while like literally an international Fugitive that I completely mind blanked and didn't know what to say to him and just asked him if he was fine with how he conducted himself yeah um I went to be like bro you like no because you remember like he said um if at this point if Luna dies the entire entirety of crypto dies or something well maybe he wasn't joking do we want those Toshi to come on oh the black guy sure to the person that dm'd me that all right almost all Hacker wallets are funded by fish to Exchange accounts most hacks end up going through fti's finance and huobi okx Etc at the end of the day it's another round of mixing or Cashing Out always fake kyc data lots of exchanges of Heather kyc databases wrecked very cool great that was Taylor who's the best chain sleuth sorry can you repeat that I was talking into the Taylor from metamask was saying that uh hackers wallets are almost always uh funded from fish to Exchange accounts yeah yeah so the finance things yeah of course but like it's something yeah it is something how do you fake kyc ask the chat just ask our God ah here's a good theme uh who is Snowden somebody in the chat said it what if it was Zack xpt it's a pretty good one what if the Zach xpt is actually Sam uh I doubt that but Snowden I could believe foreign uh Caroline deleted her Twitter oh [ __ ] really still left me yeah me too thanks person that tagged it I read before checking if you go onto Caroline's account and you just look at all the recent likes it's just all amazed she still loves you told me her last activity on twitter. com and Sam's going to be jealous about it in their uh retirement come on what a [ __ ] stupid industry ask Carolina to come on so uh naming rights for the Miami Heat arena are available what do you think so do they sell the rights or do they just terminate it and the FTX doesn't have to pay the rest or like how does that work because I also saw that they were taken off the Mercedes car as well they uh obviously can't pay the rest so good try Twitter I will not read all of the things that you tag me in oh I will detect me has TSM someone just text me playing TSM I guess I'm still has FTX on its Twitter username um you know there's a part of me that just wants to picture Sam and Caroline on a speedboat in the Caribbean leaving the Bahamas right now with their duffel bags want them to get caught but I also awesome a police car chase like a police chasing a Toyota Corolla we're even in the ftec's office and I was watching it going is this real put in the car drove into a Lamppost and then the video started again so looks like it's not private jet leaving the Bahamas okay yeah it's another one another transaction from the original account there's some crazy stuff going on right now man people need to stay safe out there delete FTX apps do you think that the most successful um reenactment of the events that we're currently living through will be presented in the form of a movie or a TV show is it going to be um like the Big Short or is it going to be like the thranos and wework um movies docu-series type things movies don't make any money anymore do they the series are always more successful and you got multiple seasons with our disasters it's just trying to pick what are your finales every season I mean you can go for five or six years worth definitely series hmm yeah I wanna did we talk about in the last show about Michael Lewis writing a book about Sam yeah I mean that book's gonna be good that's good now because he's got himself an ending and he like that might be the movie you know what would be good is actually to do it the wire style so every season has an arc but you have some core characters with a batch of new characters and it's like each cycle or something who do you reckon who'd you reckon is gonna play Caroline who will play Sam who will play some trap and who else play Kyle from multi-coin who will play suzu who will play taekwon what's the cast there's a lot of questions and I don't know actors names very well but the one when someone brought up Jonah Hill for Sam it was dead on like too good well the start of the season it's going to be Timothy Charlemagne but halfway through he'll swap to Jonah Hill I saw you say that but I don't know who that is just some dirty curly hair our chat's just gonna name Asian people this is my guys do you reckon that you'll get to do a cameo I reckon you will I hope not somebody said the girl that played Arya Stark could play Caroline that was a good one I think oh yeah that's a that's a bang call yeah Michael Sarah is SPF foreign Mark Zuckerberg oh man Jesse Eisenberg yeah he'd be a pretty good Sam too who would play Kyle samani I like that question I reckon Kyle samani will say can I play myself and they'll go yeah all right I never really dial it up who plays Kobe well I don't think I'll get to do a cameo because even if the podcast is done you the one that reads out the advert so if there's a cameo it's got It's going to be used in the media yeah um but the person most likely to get an actual Cameo I think is going to end up being Sam SPF um if he's out of jail or not on the Run um like in The Wolf of Wall Street movie the Jordan Belfort was in it at the end um or someone like Kyle or suzu or like who really want their like attention and stuff somebody said Jared Leto as Kobe he's a little bit old now so picky I was about to say you get the handsome people Dwayne The Rock Johnson and legislaus yeah that's me all right um apparently one of the hack wallets has now been labeled as FTX so white hat well I don't know can you call FTX Whitehead about anything Maisie Williams thank you for loser leaves who gave that recommendation as uh Caroline yeah she would Crush that roll oh boy what we've already got okay hold on Taylor's now just sending me weird kyc stuff I'm not sure what I'm supposed to read oh North Korean co-conspirators use the exact same photo of the body but put different photos of the faces when they submitted kyc documents that's awesome someone just sent me a [ __ ] selfie someone that I don't think I've ever spoken to before just randomly text me on iMessage of all places and they sent me a selfie and they said I make a Good Sam I'm not going to show their face but they would make a pretty decent sound they said I'll do it I volunteer um we started watching the new crown and all the characters are just people from Downton Abbey it's like we just need some British people that have done British people things before don't seem to be a lot of candidates for these I've never seen the crown and I've never sinned Downton Abbey it's because you're British Americans watch shows with British people in them and vice versa so we're just sitting here waiting to see if there's anything else to say well I mean like if the stream's turned off I'm going to be sitting here doing the same thing just like scrolling through yeah on Twitter let's call this we'll just call this we'll call this bonus we'll end the uh YouTube version in a bit but y'all can hang with us oh there's 8 000 people that are still finding some form of entertainment out of this we're just Doom scrolling yes I've been Doom scrolling for days now Zach is sending me some more addresses I think they're the white fund addresses Maybe I can't comprehend I can't I cannot comprehend it do you remember not long ago in the biggest like um the biggest like [ __ ] threat to crypto was ethereum proof of work might get too popular because ethereum work however East W might do a replay attack if they didn't say upright um that was the biggest problem in crypto for a little while that galio Sky gallius Capital was saying it was like there was like a five percent chance it would be the main chain and everyone was moral panicking about it did you convert your ethw to eth instantly as soon as they gave me it of course oh really I did the Bitcoin cash Saga did you uh I kind of forgot about it so you still own it I don't know well it depends on the video right if you're on chain you had to go do something yourself right well it's the same private key on the other oh on the other channel yeah that I still got some nice worth zero now property yeah well

### [2:13:08](https://www.youtube.com/watch?v=FZzqChK4RXY&t=7988s) Caroline and Alameda

that's how it goes for me I did get some out of uh FTX though because they did it automatically somebody said they missed worrying about fed Heights I still worry about fed hikes can we watch a little Caroline interview to get a few laughs so I got conspiracy theory it's not a big conspiracy theory it's just a theory maybe okay that Caroline previously did quite a lot of um publicity she did podcasts and she stopped um and interviews and stuff yeah and then I asked her when she became a sole CEO if she would come on the show obviously as is my duty as well that's what you do and she said no basically instantly uh let me go find my DMs so do you ever do a opening the episode now you're so SEO um and she said thanks I think I'll pass now I'm not really into the publicity stuff as Trabuco was appreciate it though and I said okay please don't liquidate me and she said okay you were on the inside wow well did she live up to that promise um but if she was doing this stuff previously and then in August late August uh decided not to do it was it because she knew that anything she might say after that would be potentially scrutinized um or she was just really bad at it like she said too much on the ones everything she was on like she only did a couple of things and I mean they're iconic now I was looking for a dongle I can uh I can keep looking but I can't do it with headphones on or I could try to it's just so that the chap can or so that you can hear it rather the chat would be able to hear it foreign it looks like somebody has um run a clean laptop on um on fdx. com and there are attempts to gain user privilege have worked well someone sent me a screenshot but I don't really know what I'm looking at somebody's sad link is dumping hard so Haka one's clear black hat hakatu is a potential white hat and hacker 3 is a multi-stick of possible white hat um and hacker one is the one that keeps dumping everything yeah they've just dumped all their chain link or something we need that I know they've dumped a third of that chain link we need that person from Paradigm who has like sounds easy son yeah it has all the main characters in their name that was foreshadowing they knew Sam it's easy that's the order I don't have socks under my feet are so [ __ ] cold here I might go put some socks on

### [2:17:25](https://www.youtube.com/watch?v=FZzqChK4RXY&t=8245s) New podcast ideas and industries

there you go I finally had some socks here so I could look like you passed it through the screen yeah um Club swag all right so what should we do a podcast about I'm done with this uh this industry let's pick a new one I like it can't be sports betting games has already taken that no and you don't know anything about sports I can learn I crypto either um what about just gardening hmm like I give you we look like two blokes that would be good at gardening so yeah we got a green thumb yeah it makes sense what about um like granola kitchen oh we can just do a show where you try and make me eat foods and I just say they're all bad like we cut together so you do the instructions our [ __ ] in my end I'll set this up in my kitchen you tell me the ingredients we'll make it at the same time and then we'll show the results of what you made and what I made me following your instructions and then we'll eat it I think this is the greatest idea I've ever had what about similar but like with homesteading tips like DIY not more than DIY like off-the-grid living type stuff have you seen these uh YouTube videos they get like millions of views and somebody's just in the woods for three weeks building a Hut with a stick that they like pulled out of the ground and they just make their own tools then they make their own Hut it's awesome I'll learn it and then I'll teach it to you and that'll be the show Kobe is describing a show that Selena Gomez is already doing what she's doing a cooking show with Ledger yes I'm not a good chef I don't think I could teach you well I'm not gonna be it doesn't matter if I'm like I won't be able to follow the instructions properly anyway because primitive technology is the one I'm talking about y'all say they all copied primitive technology I'm just talking about primitive technology that's the one Alex Mackie just said the whole office slash team is now missing how can the office be missing how could Maki know it wasn't I thought Mackie was working in the office for a while um and I think they all moved to Vancouver uh because he was working with layer zero um oh that must have been around the Bahamas uh thing event wasn't it the week before that or after that or whatever um please in Vancouver now but okay so how does Nike know maybe he's trolling I'm asking are you there all right how can an office be missing some even stole the [ __ ] office Brick by Brick how insane is it that they just got the keys for their Miami office the day this stuff went down it might make sense that the team's not at the office because if like I would not be at the office if I was an FTX team member I guess it seems like a the most dangerous place in the Bahamas to be I don't know anything about the Bahamas and whether it's got a low level of crime but um I don't think you want to be in there wearing a FTX hoodie dear no someone says the point is if the team's not the office it's not official currency movements well they've already said but they have like laptops right so they could it could be insiders still you don't need to be in the office to do stuff so the one you're talking about earlier glowis capital is that what it's called who knows golice glice half their capital was on FTX yeah 100 million stock I just saw that too they've been asked to evacuate well you would when you know I'll be like death threats and [ __ ] you would imagine yeah I was getting um uh I was getting voice notes from random as saying that they were going to go to fdx's office now oh geez how's Tom Brady doing I don't know him do you think he really

### [2:22:30](https://www.youtube.com/watch?v=FZzqChK4RXY&t=8550s) Hack talk / Old Su Zhu tweets / FTX ICO

put in a lot of his own money people keep writing it down like they put in 650 million that's what they're worth they didn't put every dollar they had into the exchange like I'd almost be surprised they put in any oh yeah so apparently everything's been done in apartments and no one's going to the office um oh my God [ __ ] hell what I just didn't like a bunch of telegram groups and I'm just like reading stuff that's going on and I opened one and there's just a gigantic naked photo of Caroline from anime but I mean it's obviously photoshopped but it was just a like full screen on like my monitor um [ __ ] and I'll do no we're not sharing it the chat what's the link really gross [ __ ] you know what kind of contagion do you think is left I reckon the next step of the contagion is that Satoshi goes yeah look finally I've had enough no not doing this anymore I thought it was going to get get like people would grow up a little bit he's going to send everything to bitfinex is going to sell for tether and he's going to withdraw tether and he's gonna sit in tether forever that's what's gonna happen yeah he uh don't give him ideas he just he's funny enough like this [ __ ] tether's better than Bitcoin I'm out [ __ ] you know um uh did you see the 2019 suzu tweet making fun of the FTX Ico yeah he um this may be his best to be ever to be honest everyone thought it was a little pump off the bottom extremely quickly leaving sideline investors stuck in fear but it turns out is this one Kyle was the one that said a few more liquidations than up only what was it Kyle yeah but I didn't talk about that tweet I mean those things were him that's the way the chat said apparently bitboy type put out a tweet saying don't visit theftx. com website but put ftx. com go to it maybe we should ask bitby to come on now this is like the other day when I was just when I was drunk of like these people at DM and they're saying kind of come on now I was like sure um the chat once but and you were just like you're just like [ __ ] girl like I hate all of these guests like look just because a guest does it comes on the show does not mean it's an endorsement of the guest our job is to bring on people of the moment yeah and listen to what they've got to say as a hybrid of entertainment and journalism um I don't think we've ever had a single guest that I've liked as a person I don't even like Ledger that much ah the uh violent crime is extremely common in the Bahamas someone just sent me a thing that says fight on crime is extremely common in the Bahamas the country is ridden with violent crime and the armed robberies kidnapping and murders are extremely common that doesn't sound good when you put a disclosure at the beginning of the show it's not Financial advice we do not endorse this guests we don't even endorse the sponsor they pay us money yeah or just like just have nice one so I don't want to lend credibility to [ __ ] anyone ever again unless I'm allowed to like audit their books or something maybe but even then I'll probably [ __ ] up when I because I don't I won't know I don't know how to do it well like multi-client got to audit ftx's books and still lost 20 of assets on FDX where they got to audit the Box in Q2 so oh wow um yeah when the um when we're ready to sign off can we close the episode by just uh running the Matt Damon ad oh geez it's a you it's so are you an ad the work I feel like fortune favors the bald thing oh yeah I think it was a crypto. com to be honest yeah it was crypto. com so the one of the hats is or one of the uh addresses is apparently confirmed that it's not a hacker yeah two addresses or FTX retaking control and sending the remaining coins to a multi-sig this is Cody Hewitt who I don't know who they are oh yeah the Larry David one's really good with FTX that one's really ironic because it's him going around saying that's not going to work that's not gonna work in it yeah so the very last part of that is someone going you should use FTX sneakers nah no this is such a disaster yeah dude here's the oops scissor tweet these same guys are now trying to launch a bitmax competitor and do an Ico for it High returns with no risk these loans have no downside 15 annualized fixed rate loans with no lockup oops I kind of just want to go back to bed to be honest dude I need to go to bed for the first time I'm tired of this week it's been a big week Barry the chat still wants big boy to come on but I don't know foreign he linked to me his article at Frank I said it was you man you reported on that I gotta share this one hold on is it where's the buttons tracking flight from Bahamas do you see this Kobe you secretly you're not enjoying it with me look at this I'm getting ignored he's doing other things doesn't hear me he wants to do a cooking show together he won't even listen thank you chat likes it he's turned off he's in Doom scroll mode I love this picture so much why the [ __ ] am I looking at is that Richard Hart with Caroline's head yes thank you finally it's so good foreign like independently viral the other day for carrying like half a dozen designer bags out of a store and he was so absurd that people just took video of him on the way out got a whole bunch of attention on Tick Tock for it yes I am losing it I know yeah I saw that it was kind of one of the bags in his mouth or something yeah I tell you what everyone having a verified tick on Twitter sucks yeah did you see that like the stock price of like some um uh like biotech company dumped because someone faked that they were going to make insulin free yeah Zila Eli Lily yeah and then they've added a new verified tag called official so now there's two it's a confusing thing

### [2:34:00](https://www.youtube.com/watch?v=FZzqChK4RXY&t=9240s) Elon Musk / Twitch Chat

I did the verified tag I just want to know what it felt like to be you have you got one now yeah paid eight bucks for it well you kind of need one because otherwise it's like because I'm getting Shadow banned yeah what are the chances that musk ends up like just falling apart come on bro in 2022 all the chances that he doesn't fall apart yeah what are chances that I don't fall apart they're very slim um I don't know well I mean like a lot of people have blue texts are paying money so maybe it sucks a bit but inverse where I tweeted up only notes Kobe's looking at Caroline Nudes on Telegram I opened a telegram chart and it was the first thing in the chat yeah I think it was it wasn't inaccurate supposed to be a serious conversation discussing the realities of the situation Rose says where's my sub shout out with what kind of stream do you think this is bro we need to start doing Sub shots of use in the markets and it's in the state of Industry we need to learn how to do this [ __ ] roughly thank you board boy 2-2 for your sub we need your 30 cents if we couldn't do this without you thank you Maximus markemas for your sub I have no idea how to do that I don't even have to know someone subbed the only reason we even turned them on is for the ad Break Stuff that it jumps in there look it works mate yeah we're getting served inspects gave some people some subs the problem is then some people are subscribed to this twitch Channel aren't they and they might get the curse by association so really if you sub someone and you're the receiver of the sub it might actually be terrible for you um uh thank you to the person that noticed that I was mimicking the Jimmy Fallon's kit I was who plays inverse bra in the movie broil I'd like to think it like um well you know what he looks like right or was the was his previous profile picture when he was the other name which I'm not gonna um yeah I know the picture of his other name but I haven't actually in my head for a really good candidate Keanu Reeves oh no I was gonna say Steve Buscemi the time oh wow that is a good candidate yeah just talking like the weird voice in real life as well like talking in like Louis speak in real life yeah oh yeah I can see that I kind of like the idea that it'd be like um Keanu Reeves um but it's like actual Keanu Reeves and like his hobby is to be in verse bra um and he talks about it as though it's an art oh yeah the dude from that um he made the worst movie ever and then they made a movie about the movie what was he called uh I don't know is it called the broom or something the movie about the movie the room yeah that's inverse Tommy wiseu wizzo yeah yeah yeah apparently Jesse Powell was come on right now yo why would you want to come on right now but we've been going for like two and a half hours yeah I'm ready for bed I want to go have a shower and pretend that I've got something more interested in my life than this [ __ ] well I feel like my life has some meaning because I'm great at contribution um not we're just all getting a scammed by sociopaths while we don't know what the [ __ ] going on and no one will tell us so are we gonna call it a day call it a show well there's Jesse coming on I thought you were you want him to come on well if he's like specifically saying he would like to come on now I know I in general but I don't know about right now all right everyone's coming in general then well yeah we'll just do it like I don't know tomorrow uh my friend Jack said you guys are the worst live crisis broadcasters ever sorry Jack listen I was not checking uh telegram apparently so what's the latest I don't know I think it's all eight uh too old now I how I mean how can if this is like a actual malware update a malware on the website and um uh while it's been cleaned out and [ __ ] there's like a multi-system very quick coordination of stuff right it's not just like take the wallet oh look we have access to this it's they've just churned through those things incredibly quickly they must have been planning to that and the only people that will have had time to plan something like that is Insiders it's yeah inside job man I think I'm allowed to read this but it's definitely Anonymous but there's is it from Jack yes it's from Jack apparently more people knew on the Alameda side yeah I mean that doesn't surprise me um Gary Wang this mysterious guy one guy has done five GitHub contributions yesterday if you go on his GitHub you can see the code contributions he did um there were five contributions yesterday he made five contributions yesterday yeah

### [2:41:58](https://www.youtube.com/watch?v=FZzqChK4RXY&t=9718s) Did SBF cause the 3AC blowup? / Multicoin Capital / Auditors

still shipping code wait what day is for me it's Friday Saturday for you okay so you did five today feet did you see the thing about uh Sam causing three AC to blow up like help triggering that blow up did you see that yeah I saw that Suzy already tweeted it but I didn't know what he meant well um the thing that's tough with all this stuff is like I mean to talk to sue you have to talk to someone that personally committed a bunch of fraud right so like everyone's got their own agenda in this stuff like a lot of it started with dokwan and lunar and stuff and then there's like three AC stuff wrapped in there and SPF Almeida there's all these people that have blown up and all committed some kind of amount of fraud in their own way um along the way and everyone just wants to therefore clear the name blame it on someone else blah blah so I don't know who like well yeah I guess they're it's very convenient to say the current enemy is the one that blew me up um but maybe it's true but I wonder if because of the ftt like Sue's Ico critiques that there was some kind of long-standing beef that wasn't really well known the follow-up to that tweet that I showed earlier uh suzu was critiquing the uh the Ico itself and like the specific details and calling it a scam back in 2019. I can't find it right now there's the multi-coin thing public somewhere well what thing having been able to audit their uh books yeah they wrote in their investor letter um why they lost funds on FTX and all this [ __ ] and they said they audited the Q2 um financial report or whatever um hmm so Jesse said he's ready whenever but I don't know what he was responding to because no my deleted the tweet in classic no mad fashion I'm getting some good DMS but I don't know which people are telling me to I can say or which I can't oh the trick with that is um just say it no matter what at least that's the technique I go for people damn you and say oh don't share this and then you just share anyway that's the way people know that that's the that's how the relationship works right they can cover their back by saying don't uh don't share this and then I go sorry these some of these core people are still at FTX like Gary and Nasha they're still there they're the one and they're the ones not communicating right now oh never mind said he said hey Jesse went up early all right let's arrange wrong with Jesse soon because I'd like to hear what he has to say about all this stuff and I think that we can prompt him into being a little bit more scathing there's a coin desk article about the audit firm for ftx's financials and apparently the FTX otter was extremely sketchy right was it one of the 145 companies under spf's company umbrella Prager Mattis that's a anagram of Alameda foreign apple is so much better than PC all right you see that here's the article 1 billion in Revenue 2021 Prager Mattis yeah this was ftx's auditor one of their operating locations on its website is the metaverse foreign was proud to support FTX us oh all right so chat can decide um decide if we did decide to keep doing this stupid podcast and did decide to have a new sponsor who should we get or just whatever you suggest the funniest suggestion ones we'll just go ask them crack and finance FDX Bluetooth flashlight polka dot bitmax JP Morgan Justin's son from Tron maxino Nando's I'll go with Nando's bro Nando's wins McDonald's yeah McDonald's I mean it would be great to be sponsored by McDonald's to be honest um I like your idea when we were talking about like um when we got to the end of the STX contract and you were like can we just get sponsored by like tether or usdc in a bull market it Powers the um it Powers the bull market in a bear Market it's the superior asset so it's always relevant yeah tether usdc tethering usdc are absolutely [ __ ] printing as well they're making so much do we get both of them laughs don't they hate each other yeah that's what that's what's so fun about it no because we can't bring the two entities with the same business model that hate each other into conflict and a podcast that is cursed look at what happened the last time we're brought to you by stable coins thanks for watching someone in the chat said can you do a practice for um uh the McDonald's sponsorship by looking into the screen and saying that you're loving it if we were sponsored by you're loving it I didn't hear what you were telling me to do I was ignoring you someone in the chat so the chat said can you practice the McDonald's sponsorship by looking into the screen and say I'm loving it what kind of cadence do they use with that like it before then you go like I'm loving it like that was that good yeah I mean foreign y'all act like this is new Kobe used to make me do accents good all causes he made me do a dance he threatened no more shows until I did that dance and now it lives on forever maybe we should never have done any more shows you should have gone okay no more shows then um I'm starting to feel like a little bit like I've got a cold maybe I look covered unless I get covered that we call this [ __ ] we've got to just lie there watching it all happen with [ __ ] covid and then all you can do is Doom scroll I mean it's not any different than what you're doing right now yeah um all right we've got nine minutes left let's call it three hours this is way too long yeah um you know I was so excited for um God of War Ragnarok to come out and um it came out like [ __ ] a week ago or something and I haven't been able to think about God of War Ragnarok at all because the industry that I've devoted a third of my life to as [ __ ] imploded on itself due to um a couple of sex call orgy sociopaths committing large-scale fraud and financial crime I just want to go play a dude with an ax and [ __ ] kill some monsters man you know you can actually use an ax in real life you can go chop some wood it's much more cathartic bro if you give me an ax in real life right now it's gonna be another incident have you seen the um meme of like uh like a somewhat like a someone going to heaven and they're like where are you Grandma where's Grandma nice to meet your grandma and then there's a dude going to heaven and he's like I've got an ax in hell and he's just shouting where is FBF foreign though also while I was saying that I realized that people explaining memes really doesn't work like you is not just better to see the thing it's like an order of magnitude different to describe a meme and actually see the meme really doesn't work this is a good one from fubar in text messages to Reuters bankman freed says he disagreed with the characterization of the 10 billion dollar transfer we didn't secretly transfer he said we had confusing internal labeling and misread it he added without elaborating so this is your thing that's like when Zuzu said he missed misclicked yeah do you remember he was like why did you delete this tweet and he said I missed clicked I just read it so what does it say I made a and he read it as well I don't know I mean this is it right here oh crap there we go ask about missing finds Batman free responding question mark question mark confusing internal labeling and misread it this is just classic sociopathic denial yeah I stun tweeted something like um lying uh lying to the end like a child that got caught stealing unbelievable man I have more comments but I can't tell what's what so sorry can't read them I don't even know if people are like joking with me or not um I did have it had another question for you but now I've forgotten it so the chat wants us to keep doing the show because this Show's been a real pain in the butt lately I don't know if y'all

### [2:55:35](https://www.youtube.com/watch?v=FZzqChK4RXY&t=10535s) Final thoughts

have noticed we should just do like 12 sponsors and just put them in the corner and be like y'all can look at their logos we don't know anything about them let's call it a day well maybe we just get like some dude I told some dude called crypto 420 King that he would be the sponsor of this episode 420 King let's see yeah it was a free sponsor I'll give him an ad read crypto um 420 King he has an Etsy shop are you sure this is the right person maybe it was a crypto 42 King I just gotta this looks like somebody more of our quality you know is this him yeah that's him that's the dude that's sponsoring the this show you got one free episode all right well maybe check his tweaks and replies to make sure that I haven't acknowledged the wrong person oh yeah I get a packet of crisps for it there you go thanks for listening to this episode of up only TV brought to you by crypto42 King the crypto King money never sleeps because business is business check out the crypto King at crypto42 King on Twitter thank you to crypto42 King Elon just tweeted about FTX but why can't I find his Twitter account [ __ ] FTX meltdown ransacked being tracked in real time on Twitter yeah no kidding Elon are you watching the show here we go come on the show I'll stay up if Elon comes on yeah he can replace me so I said go to bed this is Twitch foreign musk comes on the show in the next like five minutes can we just never do up only again make that be the finale or would that be the Kickstart to have to do it all the time we could get sponsored by Twitter that is a great idea how many Eight dollar a months do you have to make that worth it like literally crypto sweater is a perfect Target for the verified check mark pay eight dollars a month don't be a pleb Twitter blue is for you that's why we'll be extremely cheesy what about don't be blue buy Twitter blue and then at the end of the episode we can have um Bluetooth as well it's just a whole blue themed sponsor I don't have so many comments there's that many people that are paying attention if Elon Musk DM to me would it go in the like message request spam folder I I know because I follow him so I wouldn't someone said don't do it Elon it'll be the beginning of your downfall foreign at least they'd have us to blame yeah his entry to uh Twitter they're like they're changing everything so fast they're just it's like ever they're changing this verified stuff every day in some ways that's quite refreshing to me because Twitter was so stale for so long but because it was so stale you build all these habits and when it changes you you're like what the [ __ ] and like the change of everyone having a verified thing was quite happened quite subtly um and now it's just that everyone everywhere yeah I used to like look at an account if they're verified just out of curiosity and now it's everybody so it it did kind of cheapen that part because it's hard to tell like trying to find out if there's some special relevance to a reply or a comment or whatever yeah I can't believe FDX is claiming they've been hacked for all of its remaining funds basically the only thing that would be worth now is the portfolio of like whatever all the regulatory crap like are they allowed in New York it's yet like the bit license type of stuff or they're clearing houses and that kind of those types of things that they had acquired over time yeah I don't know surely the wrong game revoked foreign it's kind of funny to pitch to the richest person in the world thousands of people will pay you eight dollars if you come that's all you got to do thousands of people ooh y'all can't be dming me I'm thinking it's Elon apparently Zane would come back on but Zayn my man you got to go to bed bro we're gonna go to bed it's a ridiculous night man I don't even know what to do when should we come back on sometime next week see what we learned between now and then and maybe uh do a digestion show like I feel like all this just you need time for people to absorb everything that's going on like it's going so fast you can't even tell I'm not coming up Monday well I guess I wouldn't say I'm not just hopefully I'm not because that would only mean that we've got that much drama okay the contagionist is going to be so severe man all right dude um I gotta do something else this is making me feel sad I feel sad now yeah I'm gonna go do something um happy like might go get a dog open up get a dog um can I go adopt a dog we gotta name your dog everybody send Kobe potential names for his dog if you send me the name Sam I'm gonna [ __ ] kill the dog dance oh thanks for joining us on that note see you later bye

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*Источник: https://ekstraktznaniy.ru/video/53149*