SBF (CEO of FTX) has been arrested. 🚨

Breaking news as we were recording this Video Sam bankman freed CEO of FTX has Been arrested police in the Bahamas Arrested FTX founder SBF in anticipation Of an extradition request after U.S Officials filed criminal charges the Country's attorney general said the Current CEO of FTX John Ray and ousted CEO Sam bankman freed are expected to Testify in front of the house tomorrow The house Financial Services committee Confirmed that the former FTX CEO Sam Bankman freed and the current FTX CEO John J Ray III will both be attending And testifying what Congress is calling Investigating the collapse of FTX part 1 10 a.m Eastern Standard Time Tuesday as Is standard at least on John Jay Ray's Side the current FTX CEO he released his Statement 24 hours in advance he says While many things are unknown at this Stage and May any questions remain we Know the following six things first Second third fourth five six I'm going To take you through it 24 hours in Advance in today's video we're gonna Talk about what SBF is likely to say Based on what he has been saying and how He's getting trained I wasn't even Trying like I wasn't Spending any time or effort trying to Manage risk on FTX trying like also We're going to get some insight on the Former SEC chair Jay Clayton and how he

Thinks based on his experience heading The SEC what he thinks is likely to go Down so John J Ray the current FTX CEO Is going to be congress's first panelist Tomorrow followed by Sam bankman freed So let's start with what John J Ray is Likely to say first of all remember when John J Ray III mentioned that FTX had no Accounts on their payroll this is true And will likely come up in the hearings Tomorrow excerpt from ftx's section 11 Bankruptcy filing that states that there Were no in-house accounting not to Mention that Sam bankman freed explained To Bloomberg business recently that Ftx's accounting was done by him in his Head quote I was real lazy about the Mental math we'll talk about this Strategy a little bit later in addition The there are six main points as a part Of John J Ray's statement for tomorrow Let's just go through them it begins While many things are unknown at this Stage and many questions remain we know The following and many experts in the Industry are saying that's curtains for Sam bankman freed John J Ray testifies Tomorrow with these six points Sam will Be utterly hamstrung by this so what are The six Bombshells that the current FTX CEO John J Ray is going to bring up in His prepared statement for tomorrow's Hearing this is it number one customer Assets from FTX were co-mingled with

Assets from Alameda trading platform Number two Alameda used client funds to Engage in margin trading which exposed Customer funds to massive losses number Three the FTX group went on a spending Binge in late 2021 through 2022 during Which approximately 5 billion was spent By buying a myriad of businesses and Investments many of which may be worth Only a fraction of what was paid for Them number four loans and other Payments were made to insiders in excess Of 1 billion number five FTX stored Certain private keys to crypto assets Without effective security controls and Number six FTX used computer Infrastructure that gave Senior Management access to systems that stored Customer assets again many people are Looking at this and thinking this might Be curtains for Sam bankman freed Breaking news as we were recording this Video Sam bankman freed CEO of FTX has Been arrested police in the Bahamas Arrested FTX founder SBF in anticipation Of an extradition request after U.S Officials filed criminal charges the Country's attorney general said very Important to follow us on Twitter so You'll get this information immediately Assuming that he'll still be able to Zoom in to the hearing tomorrow let's Talk about how SPF is likely to respond To such huge allegations and let's go to

Not just an attorney not just a man of The law Jay Clayton but the former SEC Chair before Gary Gensler if anybody has Some insight to share on this it's this Man if you're a subscriber to our Channel I know you are way more informed Than most people on Sam bankman Freed's Very precise strategy right or wrong on How he's choosing to deal with answering To FTX fraud we've seen him absolutely Squirm when pressed on stealing FTX Customer funds if Alameda is borrowing The money that belongs to FDX depositors That's a bright red line isn't it there Are a lot of cases where that's actually Explicitly part of the programs and that Are happening here here it says that the Digital assets may not be loaned to FTX Trading They can't be loaned out I Question for Jay Clayton is do you think That Sam bankman freed will change his Tune change the way he answers questions Now that he is answering in a Congressional hearing is this going to Be different when he's testifying Actually before Congress will there be More I don't recalls instead of more I Didn't Do It Do any didn't know I was doing Anything wrong I I mean he's under he's Got to tell the absolute truth now Doesn't he yeah and I think there'll be

More of the same but then they'll then There'll be more Joe there's a lot going On in these Congressional hearings People will be trying to get to the Bottom of what happened Um did it happen because it was offshore Would it have happened in the U.S but Then there's a lot of other things I Mean members of Congress are not Constrained in what they're able to ask Um I don't think you were concerned but if Somebody asks Sam bankman freed if he Knowingly co-mingled customer funds at FTX like he's been asked so many times Jay Clayton what do you think he's going To say if someone says did you knowingly Co-mingle customer funds with Alameda What did he say to you when you asked Him that he said you know it was like Nebulous FTX trading does not represent Or treat digital assets and users Accounts as belonging to FTX Trading So how is it possible that Alameda Had this loan of such a large size So There is that piece from the terms of Service Um but there were a number of other Parts of the terms as there's a number Of other parts of the platform on top of That there is the borrow lending Facility but just make this very Straight was there commingling of funds

That's what it appears like it appears Like there's a genuine commingling of The funds that are of FTX customers that Were not supposed to be commingled with Your separate firm I ain't knowingly co-mingle fonts if Someone says did you knowingly co-mingle Customer funds with Alameda what did he Say to you when you asked him that he's Like oh you know it was like nebulous The way it doesn't he have to give him More he didn't give a if it's if we Didn't get to a yes or no that's what I Mean so does he do it I don't recall now What does he do I I know what people do I don't recall again and again and again You know one I think one of the reasons This is going to be so interesting and Why we're talking about today is we will See we'll see how he handles those Questions Um under that kind of pressure one of The things that makes you a good witness In front of Congress is whether you're Coming off as authentic or not and that That is actually a very important part Of preparing for these types of hearings So that's a really important thing that Everybody's going to be watching for Tomorrow do you think that Sam bankman Free will come across as genuine and Authentic in tomorrow's hearing do you Think SBF has come across authentic thus Far to my knowledge I have basically

Nothing left Um you know basically everything I had Was invested in the business I expect I'm gonna have nothing at the end of This I ain't got a hundred thousand Dollars left in my bank account last I Checked and I I think I have you know uh One credit card working with that right Now earlier this summer you thought you Had what 32 billion probably 20 but uh a Whole lot more than I do now I can't Can't imagine what it feels like to go From 20 billion dollars to a hundred Thousand dollars yeah it's I mean it's Been a really it's been a really Humbling fall in in a lot of ways I Really liked this question that CNBC Analyst asked Jake Clayton she says so If SPF lies to Congress if SBF perjures Himself what happens because honestly it Doesn't always seem like he's telling The truth if he perjures himself in Front of them what happens well I mean Perjury is perjury and you know you're Not uh twice I don't recall it's going To be more than no I didn't do anything I am sure that he is preparing Thoroughly and and going going through You know a fair amount of what is Referred to as murder boarding q a what You know how would you respond to this That that's a big part of preparing for A hearing like this so very likely that SPF is preparing hard to answer

Congress's questions in a very specific Way and he's been doing this the whole Time SBS been trying to paint this Narrative that he was just so dumb and Ignorant and had no malicious intent you Remember this that you said one of your Great talents in a podcast was managing Risk that's right and that's obviously Wrong well I it's I think that there is Something maybe even deeper wrong there Which was I wasn't even Trying like I wasn't Spending any time or effort trying to Manage risk on FTX trying like and that That obviously that's a stunning station What that's a pretty stunning admission Yeah I mean it I don't know what to say Like what happened happened honestly if I look back on myself I think I got a little cocky I've made more than A little bit Um and I think part of me like You know felt like Um Like we made it can you talk about the Distinction between civil negligence And criminality in the context of what We think has happened here Well look the you know the interesting Part about the law is it's very Complicated around someone's mental State is your mental state just you know Lack of paying attention that's the I

Would say the vernacular way to say Negligence is it you know you were you Had an obligation to pay attention there Were all sorts of signs that you should Be paying attention and you ignored them Recklessness or do you have some kind of Intent that you were like for example You know I need that money it's not mine Premeditated but but I'm going to Consciously transfer it to my account Those those levels go to level of Culpability different responsibilities At law I mean we have we have a we Actually have an amazingly flexible and Nuanced legal system around what you've Seen thus far may be unfair to prejudge Given that we don't have all the facts What do you think I I look I think there was obviously a Great deal of bad behavior here that we Would think was bad behavior from our Perspective as to how you run a Financial institution in the United States but also from a from a general Perspective in how you handle any Business but what about the idea that Some of these laws that we have here Around Securities and all sorts of other Things that might otherwise things that That maybe happened would have Constituted Fraud or Worse here Wouldn't there well let me let me says We have an incredibly well developed and

Rigorous legal system around Securities Markets Securities issuance Securities Trading all of those things but its Basis is in the common law and you know Outside the United States there is still A fair amount of common law built around Fraud and the like what is our Securities Law system do it creates Processes requirements transparency Inspection that makes it much easier to Detect fraud and prevent fraud so you Know it's not I'm not saying that around The world fraudulent activity isn't Policed we just have an incred what I Would say is an incredibly rigorous System for deterring it detecting it and When it exists but punishing it Subscribe to the channel follow us on Twitter turn on YouTube notifications We're going to be covering this every Day this week and we're going to keep You well informed on everything Cryptocurrency if you're planning to Attend Bitcoin conference 2023 let's Hang out it's going to be epic use code Altcoin daily 10 off this is the biggest Bitcoin conference in the world use code Altcoin daily 10 off web 3 is a joke Comedy show and panel if you're in the LA area or Southern California area Actually the Santa Monica area Friday December 16th get your tickets for this I'll leave a link in the description Hope to see you there