1:09

Thanks for tuning in to the Old Dirty Basement . On

1:11

this week's episode we're covering Sam

1:13

Baikman Freed .

1:15

Yeah , you know , everything all

1:17

settled , all things said and done . I think this is just

1:19

a story about a guy who was out of his depth

1:21

, didn't know what he was doing .

1:23

You know , this guy had enough money at one time to

1:26

put dollar bills four times around

1:28

the world 26 times , four

1:30

times , yeah , oh yeah , tales from the crypto 26

1:32

times , four times , yeah , oh yeah .

1:34

Tales from the Crypto with . Zap

1:36

the Crypto Keeper . Well done , yeah

1:38

. So we hope you enjoyed the podcast . Speaking of which

1:40

, if you are , leave us a five-star rating

1:42

On Apple , a written review , and

1:45

sit back , relax and enjoy . Sam

1:47

Bankman Freed .

1:56

This is the old , dirty basement

1:58

Home

2:05

to debauchery , madness , murder and mayhem . A terror-filled train

2:07

ride deep into the depths

2:09

of the devil's den .

2:11

With a little bit of humor , history

2:15

and copious consciousness .

2:16

I'm your announcer , shallow Throat

2:18

. Your

2:24

hosts are Dave , matt and Zap . I love you , matthew McConaughey

2:26

.

2:29

All right , all right , all right . Hey , this is Dave

2:32

Matt and Zap . And this is Dave Matt and

2:34

Zap , and welcome to the old dirty basement

2:36

.

2:36

Where every week we cover a true crime murder

2:38

or compelling story .

2:44

So sit back , relax and comprehend . Hello

2:49

, hello and another hello , trace

2:51

, hello-ays . Yes , trace , hello-ays . Yes

2:53

, trace , hello-ays . I like that . That's German

2:55

for three amigos . Indeed

2:57

, nice , that was awesome . How's

2:59

everybody doing ? Can't complain man . Yeah , it's

3:01

not bad . Yeah , now the traffic Traffic's

3:04

out .

3:04

Traffic is awful Around these parts

3:07

. You've got the construction on 83 , which

3:10

will be long dead before that's

3:13

finished .

3:13

I can promise you that yeah oh yeah

3:16

, for sure we'll be driving in our

3:18

olden age as that project is

3:20

being completed .

3:21

Conversely , there is the opportunity for all cars

3:23

to be flying by then and we wouldn't need

3:25

the roads right .

3:26

What I don't understand is all the off ramps are making

3:28

the . There's enough off ramps . That's . That's

3:30

what causes the jams and the congestion , like

3:33

either that or just stupid people , yeah , but they're

3:35

just like I'm making more off ramps onto

3:38

like one major artery . I don't even

3:40

know . It makes no sense .

3:41

You want the other way today , 81 well

3:44

, there was , so I love the 81 . So , coming

3:46

from my neck of the woods , 81 is banging like

3:48

and it's quick . It is quick

3:50

, it's wide , three lanes both ways

3:52

.

3:53

It's awesome uh aren't they

3:55

making them four now , four or five , I think five on

3:57

each side . I mean 81 is pretty solid

3:59

the way it is , it's okay .

4:00

83 is the one that they're banging up into four

4:02

whatever boat ways , but

4:04

there was an accident on 81 and it basically

4:07

closed the road all

4:09

three lanes , so yeah

4:11

, you won't be traveling in the future

4:13

. Anyhow , everybody will be vr that's right at

4:15

home , and or it could teleport here yeah

4:18

, and paying with everything with cryptocurrency

4:20

. Oh , what a good trip . Like I like

4:22

what you did there . Good segue , yeah . So , speaking

4:24

of crypto , you can pay in crypto

4:27

. Today , we'll be talking about sam

4:29

bankmaned .

4:31

Sounds like a made-up name . Like when I looked it didn't

4:34

even sound real . Yep , he sounds

4:36

very like money-like Bankman

4:38

Freed .

4:40

So that , of course , is a hyphenated

4:42

last name given to him by his birth mother

4:44

who , along

4:46

with his father they are both , I

4:48

should say . His parents are both professors

4:50

at Stanford University , allegedly

4:54

Well . Interestingly enough , they're both professors of law

4:56

or business or some it's

4:59

some element of law at Stanford

5:01

, which is amazing , considering what happened with their

5:03

kids .

5:04

So good genes , though for the young Bankman Fried

5:06

Good genes .

5:07

Dude , this kid's a smart kid , like really

5:09

smart kid . So , speaking of this kid , sam

5:11

Bankman Fried freed , let's just jump on in , shall

5:13

we ? So this cat was

5:15

born on march 5th 1992

5:18

. Young and gentle reminder , the

5:21

three of us were in our sophomore year of high school when this guy

5:23

was born . Wow , okay , don't

5:25

want you to keep that in mind as we go

5:27

through all of this . So , as we were just talking

5:29

, this guy is a really smart kid like

5:32

he , and he always had a flair for mathematics

5:34

, as chance would have it . So , as

5:36

, uh , his years went on , he

5:38

ended up graduating with a bachelor's in

5:40

physics . Uh , with a minor

5:42

in mathematics from mit

5:44

in 2014 yeah , mit

5:47

you're pretty smart .

5:48

Yeah , yeah , that's I went to uh

5:50

hac , which is just kind

5:52

of like mit just like different , different like

5:54

letters yeah , still cool version , yeah I

5:57

like that that's .

5:58

Is that massachusetts institute of

6:00

technology correct ?

6:02

yeah , yeah that's like I think . I think the

6:04

acceptance rate is like four percent , so

6:06

it's something insane .

6:07

I don't even think it's up to ten percent that's where

6:09

, like your uh val kilmer character

6:11

would would end up from like real

6:13

genius 100 people on those lines absolutely

6:16

do we have anybody from our class that went

6:18

to mit .

6:18

I think they have some harvard , I don't know if there's any harvard

6:21

.

6:22

Um , I don't know if any mit . I know that mit

6:25

is one of three of

6:27

these particular types of schools , like these schools

6:30

that are made specifically for this research

6:32

and and growth and science and shit

6:34

like that . The other one , I think , is , or the other two one

6:36

is Tuskegee and

6:38

the other one isn't . It's not Cornell , is it ? Nah

6:41

, whatever it is , it's uh .

6:43

Tuskegee , wasn't that like the airmen ? Yes .

6:56

Pilots from world war two , smart people's schools , the black pilots from old . Yes , yes , black

6:58

pilots . Well , we're two . Why , jesus ? All right , so this guy ? Uh , after college , his first professional

7:01

gig was trading international etfs at jane street capital . So

7:03

for those of you out there , I'm sure you've heard the term etf

7:06

, but everybody has . Well in case

7:08

, exchange traded funds . Now

7:10

these are very similar to mutual funds . The

7:13

major difference is the open market trading , which

7:15

is just on an exchange during the day for ETFs

7:18

, versus aftermarket trading and

7:20

settling for mutual funds . That's

7:22

really the big difference . Everything

7:25

else is so close . Some

7:27

will argue oh , fees this or costs

7:29

that , or embedded rates that . No

7:32

, the the difference is just with an etf , you

7:34

can buy , you can day trade with an etf

7:36

so he started out in like a traditional

7:38

financial yeah , like nothing

7:41

okay absolutely .

7:41

This is nothing to do with the crypto or anything ?

7:43

not at all .

7:44

Nope , he's just on the market man , he's

7:46

just , he's corn is up 2.5 , that's

7:49

exactly right . Okay .

7:50

Exactly . Frozen orange juice yes , concentrate

7:52

what ?

7:54

movie is that from Anyone ? Anyone Trading

7:56

Places Exactly .

7:58

I want to guess that , yeah , frozen orange juice concentrate

8:00

Futures , futures , right

8:03

. So let's see After

8:05

a little bit . Let's see he

8:08

started there in 2014 . He ended up leaving Jane Street Capital

8:11

and with half

8:13

a million dollars of his own money , which

8:15

he got actually as a parting

8:17

gift his severance package when he quit

8:19

. He founded

8:21

Alameda Research in September 2017

8:24

with Tara McAuley

8:26

. There you go .

8:28

I thought it was McAuley . Mcauley Is that

8:30

what it is . I'm just saying it to be a dick . Is it McAuley ? I'm just saying it

8:32

to be a dick . Is it Mac-a-lay ? I don't know , it sounds

8:34

like Mac-a-lay . It's Mac-a-lay

8:37

, mac-a-lay , fuck , like

8:39

what's that stuff that our

8:41

moms used to ?

8:42

buy Oil of Olay Mac-a-lay , mac-a-lay

8:54

, uh . So , as a chance would have it , he met this broad at the

8:56

center for effective altruism , you know he was actually a donor , anyone at all ?

8:58

what's altruism ?

8:59

but the idea of altruism .

9:00

So altruism is like there's

9:03

a character on um mr spock

9:05

.

9:05

Oh okay , so altruism is is

9:08

essentially the . The idea that mr spock always

9:10

puts out is the , the . This

9:12

is by Mr Spock . I'm talking Star Trek

9:14

, not the doctor , right , right , right . So

9:16

Mr Spock always says you know , you have to make this

9:18

decision . Does the good of the few outweigh the

9:21

good of the many ? Or , conversely , does

9:23

the good of the many outweigh the good of the few or

9:25

the one ?

9:36

Altruism is every thought , every effort you do anything

9:39

you do has to do with the good of the people or the good of the many , not yourself .

9:41

That's like what Rain man had ?

9:42

He had altruism , that's right , he had altruism , mild altruism , definitely Kmart . He was smart

9:44

, kind of like this guy .

9:46

Right Kind of Now , this altruism stuff , this

9:49

can get pretty dangerous to the extent

9:51

of you . You ultimately end up having

9:53

people that just think that they know it all and they know what's

9:56

best for everybody . So then

9:58

not only are they it's not necessarily

10:00

just charity to give money away , it's

10:02

instead I want , because I think

10:05

I'm so much smarter than everybody else and I think that

10:07

I can make their decisions for

10:09

them so much better , because all they keep doing is fucking

10:11

shit up . Well , here's what

10:13

they need to be doing , here's what they should be doing

10:15

, and then it just goes . You know bananas

10:17

from there becomes like political , then well

10:19

, not well even more than political , like I don't

10:21

know , life controlling oh

10:23

yeah , for lack of a better word , but anyway

10:26

. So this guy , good

10:28

old sam , joined the center for

10:30

effective altruism as the director

10:33

of development for all of two months

10:35

. He worked there , from October to

10:37

November of 2017 . And

10:39

within those two months , he and

10:41

McAuley or McAuley raised

10:44

$170 million

10:46

to fund Alameda Research . It

10:49

was just a company built to trade

10:51

cryptocurrencies , so

10:54

when I say they raised $170's , you're

10:56

looking for venture capital .

10:58

But don't you think a lot of those things that they

11:00

um , the altruism . That's

11:02

something that I think people with money come up with to

11:04

get funds to give to themselves , Sure

11:07

Cause people don't know . And then it's something that I think

11:09

people that have money look

11:11

at these things . It's like , oh , altruism , I'll give to that

11:13

. And then when people say , oh , you're giving money to altruism , that's

11:15

great , and you have to be on the know

11:17

to know what you're giving money to . So it just

11:19

makes you look smarter and more rich .

11:22

Yes , it's very self-fulfilling .

11:23

Okay , for sure , yeah , and a way to get

11:25

like a tax write-off head but

11:28

then then

11:30

you guys are just laundering the money to yourselves

11:32

.

11:33

Maybe , I don't know ish ish , okay

11:35

.

11:36

Well , let's see a few months later , in january

11:38

2018 . Uh , through

11:41

alameda , research bankman freed

11:43

, organized and arbitrage trade

11:45

where up to 25 million

11:47

dollars of crypto was being bought and

11:49

sold every day . Okay , show

11:52

of Everybody know what arbitrage is .

11:54

No , I was going to ask you that . Okay , sounds

11:56

great Arbitrage , is that French Arbitrage

11:58

?

11:58

Arbitrage .

11:59

It's like sabotage . That'd be a good band

12:01

name Arbitrage .

12:02

Arbitrage I like it .

12:13

Actually in a former employee . All Two counts of arbitrage . Is that a roast beef

12:15

sandwich ? Arbitrage .

12:19

Wait a second A roast beef sandwich .

12:21

Yeah , arbitrage .

12:25

That's the arbitriage when

12:29

you have to get the

12:31

thing to bring your heart back to life .

12:33

Oh , yeah , yeah , one of those things the

12:35

paddles and shit , defibrillator or whatever . You need a defibrillator

12:37

.

12:38

That's the Arby's triage , also known

12:40

as the arbitrage .

12:41

Arbitrage is just trying to set you up for failure .

12:43

Right , maybe . So arbitrage , the act of arbitrage

12:46

is buying and selling securities , currency

12:48

or commodities in different markets or in

12:50

derivative forms in order to take

12:52

advantage of differing prices for the same

12:54

asset . So well

12:56

, so when I was dealing with arbitrage it was

12:58

in in government funds

13:01

and government bonds actually . So

13:03

essentially with that arbitrage it

13:05

was a matter of because it was government

13:07

money or government funds . I

13:10

like government cheese . You couldn't . You

13:13

couldn't take monies

13:15

that were earmarked for this , that the other thing , and start

13:18

earning more in , like if monies

13:20

were earmarked to do this , that the other thing , you couldn't

13:22

take that money . In the meantime , make a good

13:24

spread on something , go make some wild ass investment

13:27

greater than essentially

13:29

either what was projected , what you're going to be paying out

13:31

conversely to that interest

13:33

, if that makes sense , if not arbitrage

13:35

, it's a thing listen all y'all .

13:37

This is arbitrage also thought of that

13:39

as well yeah , that's what I was thinking you

13:41

see why I had trouble like researching this guy . You're

13:43

doing fine no , you're doing fine , I don't even know

13:46

these words try to find like the uh kids

13:49

version yeah , you only have a cliff notes

13:51

for this , so somewhere , so

13:53

here's the greatest example because

13:55

we're talking about it .

13:56

We're talking about Sam Bankman Freed . So

13:58

the arbitrage in Alameda

14:01

Research's instance is a thing

14:03

where Sam had discovered that Bitcoin was

14:05

trading at 10% more in

14:07

Japan than it was in America

14:09

. So here we are . We are

14:12

talking about buying and selling

14:14

the same security in

14:16

different markets in order to take

14:18

advantage of the differing prices for that

14:20

same asset . So what this

14:22

cat found was that , over in Japan , because

14:24

there was this huge demand for

14:26

it , like a ridiculous demand for this stuff he

14:29

was able to take and basically

14:32

buy or , I'm sorry , sell , sell it there and the

14:34

cash that he would take he would come back to send

14:36

the money back to america , buy it in america , send

14:38

the cash over to japan , sell in japan

14:41

, buy in america , sell in japan easy

14:43

money . When I say send , I'm not talking

14:45

fedex and I'm not taking , talking about sending a

14:47

slow , but I'm obviously talking about electronic , you

14:49

know , currency transfer , all of that shit . He

14:52

was able to take advantage of it because

14:54

, in fact , so

14:57

many other traders , it went unnoticed

14:59

with so many others because everybody else had their eyes

15:01

on a bigger gap , which was in

15:03

Korea . So the hype for Korea

15:06

, just like K-pop . The

15:08

demand for Bitcoin over there , which

15:11

was called the kimchi Kimchi's delicious . The demand for Bitcoin

15:13

over there , which was called the kimchi oh the kimchi , kimchi's delicious

15:15

it was like the kimchi

15:17

bump or the kimchi Is that

15:19

what it's ?

15:20

actually called . Yeah , it is . I heard

15:22

about this part . It's called something .

15:23

Yeah , it's called like the again , like the kimchi

15:26

extra or the kimchi

15:28

fee or some shit like that , whatever fee

15:33

or some shit like that , whatever . But that premium there , the difference between the , the sale

15:35

price over there and the sale price in america was actually 30

15:37

percent higher . The problem with korea

15:39

, however , was converting the , the cash , quickly

15:42

enough . Again , you're doing this on on the daily

15:44

uh , converting the cash quickly enough

15:46

. Uh , back into us dollars . They're

15:48

the , the korean , whatever the hell they use

15:50

like their stock market over there . Over there

15:52

, it's just being able to convert their . The

15:55

Korean currency is so restricted that

15:58

it takes days , I should say more than a day

16:00

.

16:00

Oh , to trade it over to the American dollar . Correct for

16:02

the transaction , to sell . All right gotcha .

16:04

So that doesn't help . When it takes more than

16:06

a day , that defeats the purpose of day trading

16:08

. So in this case , this

16:13

guy's day trading between Japan and the USA . Now , while it didn't last long , while

16:15

his that trade gap didn't last long still

16:18

, over the course of just like two months Alameda

16:21

was able to earn close to 30 million bucks

16:23

. Now think about that . You're talking about

16:25

just a 10% difference in sale

16:27

price . He was able

16:29

to that quickly just buying

16:31

and selling same day , same day , same day , same day , the

16:33

same thing , over and over and over again . I

16:36

liken the situation to um office

16:39

space , right ? So when in the movie office

16:41

the one cent when they were shaving when

16:43

they were shaving percentages of sense that went

16:45

beyond one penny , smaller than a penny . It's

16:47

exactly what this was . He

16:49

just found that .

16:53

And exactly what this was . He just found that , and and then the company , the company or whoever doesn't

16:55

really see that missing , because it's such a small amount when it's when you're talking millions upon

16:57

millions so from the office space perspective

16:59

, that's obviously where it differs .

17:00

Nobody's looking for anything missing . This

17:02

guy's just noticing that difference between , basically

17:05

the the us demand versus the japan

17:07

demand that's , that was smart .

17:10

When I see things like this , I'm thinking why don't you just stop while

17:12

you're ahead ? Sure you can almost stop working

17:14

. This guy gotta stop working back then

17:16

and been set . I mean , I guess depends

17:18

on your lifestyle . Wait till

17:20

we talk about this guy's lifestyle , find out , I guess

17:22

well , that was what was um .

17:24

Oh , the movie with charlie sheen uh

17:26

wall street yeah , like once you get a taste

17:28

for that just a little taste . But then then

17:30

you got guys like oh , I made 30 million last

17:32

year and the competitiveness

17:35

to be in that field , like you know , oh , I

17:37

made 60 , oh I made 80 .

17:38

You know what I mean you just don't stop right

17:41

, you want to have the best business card . Yeah

17:43

. Doors like this , yeah right they're

17:45

gonna get there actually , you see the new tesla

17:47

doors .

17:48

Anyone ? I saw that one of those pickup trucks

17:50

driving around , yes , oh

17:52

my gosh , the whole side um

17:54

goes up . I want one .

17:56

I know the cyber truck so I want the cyber

17:58

truck , but I want one gasoline , I don't

18:00

want an electric car I never want an electric

18:02

car , I would I

18:04

fucking would , I get it , you would buy a hundred

18:06

thousand dollar truck yep to convert it for another hundred thousand dollars to gas

18:08

.

18:08

I forget that bed of that truck I put a big tank for for another hundred thousand

18:11

dollars I forget that bed

18:13

of that truck .

18:13

I put a big tank for for gasoline

18:15

in there and I drive around for a smoke snack I give

18:17

you credit .

18:18

That would be the coolest shit I've ever seen .

18:20

Dude , dude , that's a cool electric car like fuck

18:22

your electric car , man , that's gas you can

18:24

hat at just

18:26

buy a hemi like a ram and then

18:28

get the uh cyber truck

18:30

body you know , or

18:33

or you know or put it over top .

18:35

With like the $100,000 gas conversion

18:37

kit to your electric car .

18:39

I think the way I would do it . I would use the

18:41

whole bed to basically fill the bed

18:43

with a big tank for gas and then

18:45

a generator , so that the gas

18:47

would run the generator , then the generator

18:49

would make the electrics , yeah

18:54

, to run the electric Rube . Precisely

18:56

it is it is , in fact , the mousetrap of

18:58

of that at eight miles a gallon . So

19:01

remember that . Tara mcale

19:03

, she ended up leaving

19:05

alameda research in april of 2018

19:07

, after having founded the company not

19:09

but six or so months earlier .

19:12

Was she pushed out or just she wanted

19:14

to do something else ?

19:15

From what I read , she just didn't get along

19:17

with her partner Like that guy was really

19:20

demanding and flaky

19:22

as hell man . Okay . Again like book

19:24

smart , awesome , smart , whatever , but just an

19:26

, I don't know , just an asshole , complete

19:29

asshole , and I guess she didn't like what he

19:31

was doing or where he was going or his direction , that

19:33

he wanted to take the company . Maybe he

19:35

was just this altruism gone way too far

19:37

, who's to say , maybe he

19:39

was already plotting to do bad things , who's

19:41

?

19:42

to say , yeah , I'm sure that something

19:44

will come out Like , yeah , six months into owning your own

19:46

company , then you're like I'm out , I'm out and you made

19:48

30 million a couple of months .

19:50

Not bad . Yeah , that's good money .

19:51

That's weird to leave when you're that successful

19:54

.

19:55

Yeah , I don't know . We hate it when our friends become

19:57

successful .

19:58

Yeah , that's a song , right ? Yes , morrissey

20:00

.

20:01

Yes , oh , for God's sake , don't

20:03

be a hater . Fun fact , it's emo night in Harrisburg

20:05

, Pennsylvania .

20:06

It is at the H . I'll

20:08

be so sad thinking about it right now

20:11

.

20:12

So Sam moved to Hong Kong in late 2018

20:15

. Within six months , Sam

20:18

found another partner , Gary Wang

20:20

.

20:21

Everybody Wang Chung tonight .

20:27

With whom he founded

20:29

FTX in April 2019 . So FTX is a cryptocurrency

20:31

exchange and it is a

20:34

derivatives exchange Derivatives

20:41

, anybody . Derivative financial instrument is basically like futures options , any

20:43

financial instrument with a value based on and other or other

20:45

investments . It's just taking little

20:47

pieces of it . It's not the face

20:49

value . It's

20:51

wild how that works . If

20:53

there's money to be made , people find a way . So

20:56

meanwhile , alameda , which

20:58

still existed , uh , served as FTX's

21:00

market maker . So a market maker

21:03

is an entity that provides liquidity , uh

21:05

, and it's also able to both buy and sell

21:07

, which ultimately limits volatility

21:10

. In whatever they're buying and selling , they basically

21:12

can serve as that other end of a buyer

21:14

or seller . So in FTX's

21:17

cases , alameda was able to buy or

21:19

sell depending on customers'

21:21

demands , sometimes even

21:23

taking a loss just to keep the customers around

21:25

. So what I'm saying is , let's say , dave comes

21:27

to FTX and says , hey , man , I want to

21:30

sell my crypto bit for

21:32

whatever , even if that's

21:35

over market . Alameda would say alright

21:37

, that's cool , man , we'll buy it at that price

21:39

. We'll take a haircut on that because we

21:41

want to keep your business .

21:44

Out of all the things out of that , the only thing I got from that is like

21:46

FTX . Wasn't that that movie with Emilio Estevez

21:48

?

21:49

Oh you mean FX . Yes

21:54

, fx . Thank you as oh you mean fx .

21:56

Yes , fx , thank you for getting that , wasn't it ?

21:57

I thought an ftx was an automobile or what was the cadillac the ftx . Yeah

21:59

, yeah , I think one of the ctx , whatever damn , zap

22:01

you so smart .

22:02

So , anyway , but but so alameda

22:05

, through ftx , uh , what

22:07

it also did , uh , it was , it also provided

22:09

the , provided the means for alameda to

22:11

profit what

22:14

investors lost . So , just

22:16

like they could be the giving buyer

22:18

, they can also be the stingiest hell seller

22:20

, and look , we're

22:23

only buying . Or even , conversely , a low bid

22:25

buyer , like , look , asshole , we see that you're

22:28

sitting on these coins that aren't worth shit . We'll

22:30

give you a couple of nickels , you know , walk away , and

22:32

they'll sit on it and it'll grow and later on they sell

22:35

it for madness I wonder what the ftx

22:37

was , uh abbreviation for .

22:38

If it was actually , is it like fungible token

22:40

exchange or like ?

22:43

fungible . What makes sense ?

22:45

it would make sense . I know that they they just went with

22:47

ftx and , like they , they went

22:49

with the names that they went with for with

22:51

purpose , like Alameda Research

22:53

.

22:54

That was in California , probably Alameda in that

22:56

, a county or something Sure .

22:57

But they went with that , because you start naming things

22:59

cryptocurrency , exchange

23:02

, buying and selling platform , blah , blah , blah

23:04

. Nobody's going to come to it . I'm

23:06

messing with that , correct . It sounds like a . It

23:09

sounds like a scam .

23:10

FTX is just a futures exchange .

23:14

Yeah , but it doesn say what it stands for . No , it's just

23:16

a .

23:17

Like abbreviation yeah . Bankman Freed was the one who

23:19

started it . Ftx acquired a Blackfolio .

23:21

Maybe it's Freed . Maybe it's Freed Just

23:23

.

23:23

FTX is an abbreviation for Futures Exchange

23:25

. Oh , okay , so FT .

23:27

Future and the X Exchange ? Oh there it is . And the X exchange ? Oh there

23:29

it is Okay futures exchange Okay . There you go , because I know

23:31

there's a thing called fungible tokens . I don't know if it's

23:33

a similar thing .

23:34

That's where I thought that this was going as well . Yeah

23:36

. But hey , thanks for the one

23:39

source on the inner tubes . Maybe it's right .

23:41

Yeah , I don't know this is all like

23:43

to me , but

23:47

as far as

23:49

crypto , I've never dealt with it .

23:51

I don't want to deal with it . I don't believe in that shit . It's

23:53

bullshit , it's horse shit .

23:54

I like cash . Yeah , at the end of this I wanted to get

23:56

some of your guys' input on that .

23:58

Well , none of that ever caught on right . I mean

24:01

the Bitcoin , the crypto .

24:02

Oh , it's still a thing yeah

24:06

. Oh , it's still a really big . Thing . Well

24:08

, speaking of growing , so business was

24:10

good , like really good , in fact

24:12

, so good for Sam that

24:14

Sam had ultimately made his way to Forbes 2021

24:17

list of 30 under 30

24:20

youngest billionaires . Good God

24:22

30 under

24:25

30 . So he's a billionaire under 30

24:27

. All this I did was go to college Like

24:29

your mom goes to college .

24:30

He went to MIT , though . That's where . That's where they're made

24:32

, I guess . Yeah , I guess .

24:34

Well , until October 21, . Uh

24:37

, sam was the CEO of both Alameda

24:39

and FTX . So

24:41

he's he's running two currency exchanges

24:43

. He ended up stepping down from Alameda , however

24:46

, Uh , uh , but

24:48

in ? Uh , when was that ? In October , but

24:50

, uh , he appointed his his own successors . So

24:52

when you're basically saying , okay , I'll step down

24:55

from this company , but I'm picking the guy that's replacing

24:57

me , you still got a shit ton of power

24:59

in the company that you just left . That

25:01

makes sense . So , within

25:03

a year and a half after having founded ftx

25:05

, sam moved

25:08

to the bahamas .

25:09

Now , by now , this was , uh , september of 2021

25:12

yeah , I would think with the Bahamas it's

25:14

a lot to do with , probably , regulations and stuff

25:16

Like they're . They're a lot more lenient down

25:18

there , if it's what I'm thinking , because I actually

25:20

just um , there was an audio book that I was

25:23

checking out on this guy , billy Waters . He's like a gambler

25:25

, uh , one of the in

25:27

his word , his

25:38

own words , he says he's the most successful gambler of all time , bet the most money

25:40

and all that . Okay . Um , he moved before , uh , gambling was legal almost everywhere , back when it was just

25:42

in vegas . Um , he moved to the bahamas and ran his operation out of there because number one , I guess

25:44

, like the taxes , you know , there was all kind

25:46

of benefits and different things for moving his

25:48

operation there .

25:49

Yep , it's much lighter banking regulations

25:52

, much lighter tax . You'll

25:54

also hear things of like people taking their money to the

25:56

Cayman Islands or

25:58

the Swiss bank account type thing right

26:00

. Yeah , not far off . Yep , not far off

26:02

, okay .

26:03

But one of the cool stories he had . You're talking about

26:05

the gambling aspect and the amount of money

26:07

that was moving around , which I'm sure this FTx

26:10

had a lot of money moving around in their accounts . But

26:12

he said he was asked what was the biggest

26:14

bet you ever put on , like one game . He

26:16

bet four and a half million dollars on the god

26:18

damn four and a half million dollars

26:20

, million on the colts saint

26:23

super bowl , holy shit and I think it was 2005

26:26

, maybe or 2009 , and

26:28

uh , he won , though , but uh , yeah

26:30

, it was a great . It just got me to thinking , because I

26:32

think his operation was in the Bahamas as well

26:34

. Now he ran this game . He would have a

26:36

team of people calling and making bets

26:39

and taking bets . No , not taking bets

26:41

, he placed bets , but yeah .

26:43

Car doors go like this . Yeah , for sure , holy

26:45

shit , god damn

26:47

. All right . So let's see Huge

26:49

wealth moved to September 21 . Okay

26:52

, so 30 out of 30

26:54

, 30 out of 30 . So let's let us all not

26:57

forget that we were just talking

26:59

about earlier . Crypto did not go away . Crypto remains

27:01

. Crypto has grown significantly since

27:03

I mean , crypto is still a very big deal

27:05

. Crypto still traded , not just on a couple

27:08

of markets Like it's there's

27:18

a lot of trading platforms and there's a lot of different coins out there . I think I saw like there's like 40 major

27:20

ones that are like worth over a billion or something like that it's . There's a lot of crypto out there search , but it's ridiculous

27:22

, wild shit that I again , there's nothing

27:24

backing it .

27:25

There's nothing that's not many , I don't know

27:27

it must be like bullshit . It must be billionaires

27:30

that invest in crypto , Cause there's nobody that I

27:32

don't know .

27:33

No , regular people do that . They think it's almost

27:35

like uh , uh , the way I look

27:37

at it and I know there's people that will just disagree

27:39

the pie is it's . It's like uh , I

27:41

think you look at it like a lot of people look like a get rich

27:43

scheme , but

27:47

I look at it almost like yeah correct . Yeah , bring your money

27:49

, and bring your money and it's going to grow and if you don't time

27:51

it you're going to get screwed . 100 , what

27:54

do I know what ?

27:55

hey , I'm no scientist this .

27:56

This guy was born in 1992

27:59

. Us who are born in the 70s , like I'm still kind

28:01

of like that , you know , mattress under , or

28:03

my money under my mattress , like you

28:05

want to see it . You want to like the

28:08

green dollar . I don't know like this crypto

28:10

thing just blows my mind with my mind on my mattress

28:12

and my mattress on my mind 110

28:14

.

28:15

So crypto remains a volatile

28:18

market . In may and june

28:20

of 2022 , this

28:23

was like nine months , eight or nine months . After he

28:25

moved to , after sam moved to the bahamas , uh

28:27

alameda suffered substantial

28:30

losses in the crypto market and I

28:32

mean mean , look again . You're going to see things like you'll

28:34

hear the articles like Bitcoin or this , that or the other thing

28:36

, where that thing will drop ridiculous

28:38

amounts and it'll increase ridiculous

28:41

amounts . It's incredibly volatile

28:43

.

28:43

What's that other one , ethereum or something like that Ethereum

28:46

is absolutely .

28:47

it's a that's a Def Leppard song , a coin

28:49

yes . It's .

28:50

Ethereum .

28:57

When leopards on a coin .

28:57

Yes , I thought it might have been a tool album ethereum . Yes , could very well have been

29:00

, but either way , in order to cover alameda's positions and to enable

29:02

alameda to pay off loans it had used

29:04

to acquire the crypto it held , ftx

29:07

loaned approximately 1010 billion

29:10

with a B to Alameda

29:12

. Now , the $10

29:14

billion represented half of FTX's

29:17

customers' funds . So

29:20

there was a couple of things in that sentence I want to point

29:22

out one more time . First

29:24

things first . The

29:26

loan to Alameda was for Alameda

29:28

to pay off loans that

29:31

Alameda had gotten in order to buy crypto

29:33

. So it wasn't buying crypto with its own cash

29:35

, it was borrowing cash to buy crypto

29:38

, this ridiculously volatile thing

29:40

that's like . Isn't that the same shit that Madoff

29:42

did ? That's quite literal .

29:43

No , he just well he would take some people

29:45

invested , invested and he would just use their money . That's

29:47

correct . Yeah , that's the second part of his own money

29:49

.

29:53

Yep , that is the second part of this , but the the first part , the loan part . There there's

29:55

no difference to what that was . Then , if somebody goes to the bank

29:57

got a loan and then you take that cash and you

30:00

go to vegas , there's gambling . That

30:02

is exactly what that was . So then , yes

30:04

, the second part that I wanted to point out and matt very

30:06

aptly when , when

30:08

you're , when you're acting in a fiduciary

30:11

capacity right , fiduciary

30:13

, you're acting on behalf of someone

30:15

.

30:16

Yeah , so I went to school with a couple of fiduciaries

30:18

. That's right , it's a real douche

30:20

. But yeah continue

30:22

.

30:22

When you have the oh , I will Thank you . Thank you

30:25

. When you have those customer funds , that's the customer's

30:27

funds . Like you're , you're

30:36

holding those monies on their behalf and you're you're investing

30:38

on their behalf and it's sitting where it is . You cannot , you cannot , take their customers

30:41

money and start making money of your own . Yes , the lawyers will get

30:43

disbarred for that shit . That's a no-no . These

30:45

trading companies will be kicked off of the , the

30:47

exchanges for that . Like you can't fucking do

30:49

that shit . Uh , yeah

30:52

, yeah , yeah , oh , let's see . So all of that is

30:54

a serious no-no . But and ps , the

30:56

cryptocurrency itself in

30:59

which alameda was significantly

31:01

invested the name of that coin was the

31:03

ftt . That

31:05

ftt was the exchange

31:07

token that was issued by FTX

31:10

, so it was their own Bitcoin equivalent

31:12

. That's correct . It was FTX's own version

31:14

of Bitcoin was the FTT and , as chance

31:17

would have it , this closely held corporation

31:19

, or this one that Sam just

31:21

stepped away from , was invested

31:23

heavily in FTX . So they're just loaning

31:26

back and forth on something

31:28

with no substantive value

31:30

whatsoever , all right , so

31:32

this is where this I'm calling it a digital

31:34

wallet .

31:35

I just had to look up that stuff too digital wallet

31:37

is a thing .

31:38

I have a digital wallet . That's crazy . Yep

31:40

, I've never used it , but I have it , uh

31:43

, okay . So news of alameda's and ftx's

31:45

ties ended up making its way to news

31:47

outlets . Now there's this outfit out there

31:49

and this is what I have in my wallet , or run in my

31:51

digital jawn it's Binance

31:54

. So Binance is the

31:56

world's largest cryptocurrency

31:59

exchange .

31:59

Does that like if you don't know it like for sure , if you're like money

32:02

or if you're like not money ? Yes

32:04

, you're like Binance .

32:05

You're Binance , that's right . You're just dipping

32:07

your toes .

32:08

You don't know what you are , you're just like in the

32:10

middle .

32:10

Are you paper or ?

32:11

coin You're paper .

32:12

What are you ? Well , that's the B in LGBTQ

32:14

.

32:15

Oh , Binance , yeah Binance .

32:16

Dang , so right

32:19

. So News of Alameda and their ties made its

32:21

way to the outlets . Binance

32:34

, again , a competing cryptocurrency exchange , the largest in the world , uh , and

32:36

at the time , holder of approximately 10 percent of , uh the total ftt in circulation . Again

32:38

, ftt is that ftx's version of bitcoin , for lack of a better word . Um , they announced

32:40

far and wide , high on the hilltops

32:43

, that they intended to sell its

32:45

10 stake in ftc currency

32:47

. Yeah , so when you're

32:49

the biggest swinging dick out there and

32:51

you say I'm selling off

32:53

my position in this company , all of it

32:55

, that's like . I mean , you've heard of Warren Buffett

32:58

, right ? Yeah . Okay . So if Warren Buffett is the

33:00

majority holder of pick a company and

33:02

he comes out and says , fuck it , I'm going to sell

33:04

all of my shit in this company , that

33:07

company is going under . He

33:10

is just the voice of power in that

33:12

. In this case , Binance had that same power

33:14

.

33:14

I saw a thing that kind of and I would equate

33:16

this to stocks Similarly that they said

33:19

a guy was explaining how the stock market

33:21

works . He said

33:23

think of your Warren Buffetts or your big heavy hitters

33:25

in these little speedboats and they can

33:27

turn real quick and all the masses

33:29

of people are like big cruise ships . So

33:32

when they go and sell something

33:34

and turn the market , they're real quick about it

33:36

and the rest of us move real

33:38

slow because we're in this big . So , just

33:40

like if this company's selling , they're

33:42

getting out quick , yeah , and then everybody else is kind

33:44

of left behind they're .

33:45

They're when they're first to the news to say that I'm

33:47

getting the hell out . That means that they're getting the

33:49

hell out and everybody , hopefully , can catch up . Right

33:52

, should those people choose . Right Now there

33:54

are , you know , between bull and

33:56

bear markets , there are a lot of people , a

33:58

lot of people that are into buying when stocks are on a

34:00

downturn .

34:01

Yeah , Like when what's he say and

34:03

he says when people get scared , get

34:05

greedy . Yeah , you know what he says . I don't like that

34:07

yeah absolutely so

34:10

.

34:10

Uh , the that sale led

34:13

, uh , all of the other ftx customers

34:15

into a panic . And now again , ftx is the exchange

34:17

right . Just for clarity one more time ftx

34:20

is the exchange , ftt

34:22

is the coin coin , yeah . So

34:24

fftx customers went into a panic

34:27

. Uh , that panic led to customers

34:29

liquidating their accounts at FTX . That

34:31

liquidation reduced FTX's assets

34:34

by $6 billion

34:36

in one day . Now , when I say assets

34:38

of FTX , this is like think

34:41

of the Great Depression . Right when

34:43

people started learning that banks were going to fail

34:45

, everybody ran to the banks like hell

34:47

, I want to get my cash , give me my cash , think

34:49

of it . It's a wonderful life . People ran to Bailey's

34:52

shop Give me my cash , give me my cash

34:54

. They got no cash , ain't no , it got

34:56

no money in there , y'all . That

34:58

is exactly what what ended up happening to FTX

35:00

on that day . So their assets , not

35:02

the coin , ftx . It

35:13

also led to a decline across the board in all cryptocurrencies because

35:16

they see this one going and it was a pretty big player

35:19

. They see this one going . They think the

35:21

whole shebang is going up . Rome

35:23

is burning . Correct , exactly that

35:25

. So on November

35:27

8th not , but two days

35:29

after the sale of its stake at FTX's

35:32

FTT currency . Binance

35:34

announced its intentions to buy

35:37

FTX and encouraged

35:39

all crypto exchanges to cease

35:41

using FTT as collateral

35:44

as it would be volatile during Binance's

35:46

due diligence process . So

35:48

what for lay people ? What happened

35:50

? So binance sold its stake

35:52

in ftd , drove

35:55

the value of the company down to shit

35:57

because everybody else is is

35:59

going to ftx , liquidating

36:01

its ftds . Now

36:04

that the company's cheap as shit , binance comes

36:06

in and says , okay , now we're gonna buy

36:08

it . Like this is complete market manipulation

36:10

right , sure , yeah but hey , in america

36:12

first you get the sugar , then you get the power , then

36:14

you get the women . So in this , but

36:18

that was homer . I'm sorry , I had to do it .

36:19

My ftt won't let me be

36:21

.

36:22

I can't get it out of my head so

36:24

these , so these guys swoop

36:26

in and they say , okay , we're going to buy it . So

36:29

that announcement alone . When

36:32

that was so step one , now step

36:34

two . When , again , the biggest swinging

36:36

dick in the cryptocurrency market , binance

36:38

. When they come in and say , hey , everybody

36:41

, probably not a good idea

36:43

for you to be

36:45

using FTT right now to be buying

36:48

and selling and or using FTT and or using FTT

36:50

Cause it's going to be really volatile . You should probably just

36:52

stop using it for a bit . This is

36:54

like God coming down and saying , hey , you

36:56

know , stop using the , the , the rupee

36:59

, or the shekel , or the , the

37:01

, the , the DNR , right

37:03

, you know , just pick a currency that you just want

37:05

to wipe out a small company or country . Same

37:08

thing is exact , exact same concept . Cosby

37:10

shouldn't use the rupee . Yeah , that's right

37:12

, it's bad news . Sent me a rupee , so

37:15

let's see that announcement alone

37:17

again . This is binance , really just

37:19

fucking with these guys . That announcement

37:22

for them to for all currency exchanges

37:24

to cease using it . Reduce

37:26

the market value of the ftTT

37:28

token , the FTT currency

37:30

, from $25 per coin down

37:33

to $5 per coin . Dude

37:35

, that's one day . It

37:37

also reduced Bankman Freed's personal wealth

37:40

by $14.6 billion

37:42

. Now , when I say his

37:44

personal wealth . At

37:46

its peak , his

37:49

personal wealth was approximately 26

37:51

billion , so just in one

37:53

day he lost more than half of it

37:55

. This was after all of the other

37:57

shit had happened prior to that .

37:59

But when you're losing that many like in a billion , is

38:01

that that big of a deal ?

38:02

Yeah , that's what I was thinking about , but I'm

38:05

sure it still hurts the thing is .

38:07

The measure of that wealth , though , is in crypto

38:09

, because he held very little hard

38:11

assets Very little , I'm

38:13

saying comparatively speaking . Sure , he

38:15

had millions socked away in this or that in

38:18

actual dollars , buried treasure

38:20

, I don't give shit . That certainly existed

38:22

, and he had . You know , his parents had a

38:24

house that he had purchased for him , and he gave them money

38:26

and all kinds of shit like that , but 99%

38:30

of his quote-unquote wealth was tied

38:32

up in crypto Like fake shit , which , again , is

38:34

just so goddamn volatile . It's just all over

38:36

the place all day .

38:37

But , like you were saying , I'm sure he had money

38:39

in like liquid

38:42

assets or what would that be like actual hard , like

38:44

whatever your assets are , Like he owned

38:46

a lot of shit , Because you're talking

38:49

in billions of dollars . But , like you said , I think he played

38:51

with this crypto stuff or

38:53

the , the FTX . I think all that was just

38:55

like kind of like him playing slots

38:57

. Pretty much could be like

38:59

. I don't know how you would base that on

39:01

like actual real money , but I guess it is . I don't

39:03

know it , just I don't know it's converted .

39:05

I mean thing when you yeah , so you're not getting

39:07

in with nothing . You have to get in with real

39:09

money yeah , yeah , it's like you , it's

39:11

, it's like the lawnmower man you're

39:13

that's a great movie you're converting

39:15

the physical into the digital right , but

39:18

you see this even with video games and stuff .

39:19

I know my kid they played fortnight

39:21

. They had the thing called v bucks . Yep , and I

39:24

mean it . You know it would float around

39:26

and you got . You know , if you got a lot of v bucks you can

39:28

buy a lot of product In this

39:30

game . It has a value . It's just insane

39:32

. What Getting skins ? Yeah , getting skins

39:34

, exactly . So

39:37

everything I guess has a value . You know

39:39

like that , but this stuff's just insane

39:41

.

39:41

This stuff is all it makes your head spin . It's

39:43

all based on , I think , demand

39:46

or hype , like there was a coin

39:48

out there , like I think it's called the Dogecoin .

39:50

Dogecoin yeah .

39:50

That what's his name ? Elon was pushing Like

39:53

one day Elon's at an interview and says

39:55

oh man , you know I've taken quite an interest

39:57

and a good stake in the Dogecoin

39:59

.

39:59

Yeah .

39:59

That day it was up 100% or some shit

40:02

.

40:05

Right couple kids that were screwing around and

40:07

it's supposed to do with the , the shibu inu

40:10

dog , or something like that . It was all a joke . They put it

40:12

out as a joke , really , and

40:14

then it became something real .

40:15

So something into which people took

40:18

real money and invested . I like doja

40:20

coin .

40:20

She's like bitch . I said what I said

40:22

. I'd rather be famous instead

40:24

, doja coin .

40:25

She's huge right now . Yeah , I was gonna say I know that's an

40:27

artist yeah similarly , but I wouldn't know what she's

40:30

doing . Doja Cat , doja Cat , she's actually

40:32

really like .

40:32

The kids love her .

40:34

Oh yeah , apparently so does Matt , yeah , I do

40:36

, I do , she's great .

40:38

You're kicking out lyrics .

40:39

He's on hits one man

40:44

he's listening to all that be on a kid's bop

40:46

yes , oh , yeah , side bet

40:49

.

40:49

Yeah , okay , uh

40:51

, so that was on november 8th , november

40:54

9th , the next day . This

40:56

is the ultimate fuck you . Binance

40:59

announced it's walking away from the deal no

41:01

so again binance

41:04

, completely demolishes

41:06

the company , liquidates its stake

41:08

, completely demolishes the company and says

41:10

you know what ? Fuck it , we change our minds , we're

41:12

not going to buy this thing . So this thing

41:14

was done , this company's over . That same

41:17

day , november 9th 2022 , alameda's

41:19

website was taken down . The next

41:22

day , november 10th 2022

41:25

, uh bankman freed announced that ftx's intentions

41:27

and efforts to raise uh 10 billion to

41:30

remain solvent , again raising

41:32

$10 billion . They're looking for investors .

41:34

They're looking for whatever . Kick in .

41:36

That same day , virtually all of FTX's

41:38

legal and compliance team resigned

41:41

Again . When the lawyers and the compliance

41:43

people are running for the hills , something

41:45

is awry . Something is certainly awry the

41:48

next day , november 11th

41:50

, alameda

41:53

Research and FTX filed for Chapter 11 bankruptcy protection

41:55

Dude . This

41:57

is such a wild ride . Like I read this and

41:59

to me it just blows my mind Again

42:03

one year earlier . One year

42:05

earlier , this guy had just moved to the Bahamas

42:07

and was listed on Forbes Richest of the Richest

42:09

30 , youngest of the 30 .

42:10

30 of the under 30 26 26

42:13

billion . That's what the B and a year later you're

42:15

saying that they filed for chapter 11 . Correct , because

42:17

they have no money the monies is gone

42:19

.

42:19

The money is gone . The money is gone again

42:22

when you , when you take it back to just its

42:24

foundations and its fundamentals . They

42:26

took customer money and

42:29

they gambled with it , they gambled

42:31

with it or they loaned it or they did whatever

42:33

to make even worse gambles , and it just went worse

42:36

and worse and worse from there . There were no , there

42:38

were . There's supposed to be safeguards in place

42:40

, but I mean ultimately I mean , as as

42:42

I was reading about this , this because

42:44

it's crypto and it's all digital , it's all programming

42:46

right . So there are safeguards in place that says , hey

42:49

, man , you can't do this , you can't do that . There

42:51

are things to automatically stop you that regulators

42:54

will step in and say you know , let's

42:56

make sure that your controls are in place and are functioning as

42:58

designed so you're not dicking around with your

43:00

customers money or that you're making risky bets

43:02

because of this exchange

43:04

, this , which is still , to this day , like

43:06

not regulated you

43:09

, this is they're gonna say mount up this

43:11

is absolutely not

43:13

regulated shit . I don't want to say unregulated

43:15

. I don't like the . I think the the prefix

43:18

on his way misused well they .

43:19

I know that in china they outlawed it they

43:22

china ? Yeah , they , none of it . You can't do

43:24

any of it over there but , um , I

43:26

was amazed at the amount of celebrities that

43:28

were involved in promoting this . And uh

43:30

, there were . I didn't realize at the time even

43:32

what the commercials were about . But looking back

43:35

now , during the Super Bowl , there was a lot of commercials

43:37

about cryptocurrencies .

43:38

Oh , my God , yeah .

43:39

I think FTX itself had a commercial

43:41

during the Super Bowl .

43:43

I don't know about the most recent , but I know that the year

43:45

before this most recent .

43:47

It would have been like the 22 Super Bowl 22

43:49

Super Bowl was ridiculous with crypto

43:51

commercials redonkulous , I might say

43:53

but how you're saying it's , it's celebrities and stuff

43:55

, because they're the only ones that have that extra

43:57

coin sitting around that they can invest in something

43:59

like like this is not a regular person so

44:01

you would think , you would think .

44:03

But , as david mentioned , there is the that get

44:05

rich quick mentality out there

44:07

yeah I know kids that are in high school

44:09

, that are , that have digital wallets

44:11

.

44:11

Oh , yeah , because you can buy like fractions of a Correct

44:13

. Yeah , because , like Bitcoin , for instance , today's

44:16

price I just looked it up before we started $64,351.60

44:21

a share . Okay , per coin , per coin

44:23

. So you know , average person's not

44:25

buying a whole coin , correct , so

44:31

you can buy fractions of it , I'm sure'm sure . But for instance , the first day that I

44:33

could find that it was available , uh , that looking at the five year or

44:36

looking at the max , just like a stock

44:38

, the max time frame was november

44:40

27th 2015 it was 327

44:43

dollars a share , or a coin

44:45

, I should say not a share , but

44:47

uh , yeah , that's crazy that's a lot of money

44:49

, yeah , but you trust the stock market

44:51

.

44:52

I don't know if I would trust the whole Bitcoin

44:54

. It kind of sounds like a pyramid type scheme .

44:56

I don't know how , but it's

44:59

people smarter than all three of us put together making

45:02

shit up . I just can't understand

45:04

. Look

45:07

, I'll be the first one to tell you I'm no scientist . I just

45:09

don't understand how one can put some kind

45:11

of ridiculous value on these non-fungible

45:13

token . It just doesn't make sense

45:15

.

45:16

Yeah To me .

45:17

like I said , I feel the same

45:19

way , but it's also like art , though , right ? So

45:21

if somebody says that piece of art , some

45:24

baby wiped his ass on a canvas and

45:30

I want a million bucks for it , it's really whatever somebody's willing to pay . So it's the same concept

45:32

, I guess .

45:32

But that's what you get , like the hungry fish

45:34

in a pond type thing you keep throwing these little like

45:36

tidbits out at them . You start seeing like it

45:39

turns into a frenzy and I think that's what people

45:41

with money are always looking at easy ways to get more

45:43

money . Yeah , and I think this is how this

45:45

whole thing I don't

45:47

know To me , whole thing there , I don't know to me it's hard . I don't understand half

45:49

of this shit there was . I don't ?

45:51

there was an nfl player , maybe a year or two

45:53

ago that took his bone like his sign-on

45:55

bonus in cryptocurrency cryptocurrency

45:57

bitcoin he was like you know , don't

46:00

pay me the traditional way . I want x amount

46:02

of bitcoins or what I don't know . It was a bitcoin

46:04

, but one of those .

46:06

So whatever man I

46:08

like it's , it's not something I ever

46:10

want to get into . I know that in recent

46:12

years , institutional

46:14

investors have gotten into this , and by institutional

46:17

investors . I'm not talking about the institutions

46:19

that are doing the investing , like your Merrill

46:22

Lynch's or your Wells Fargo's or shit like that . I'm

46:24

talking about , like when you said like , so

46:26

what that will get to , like the celebrities that got hit

46:28

with this loss , these significant

46:31

losses , like a Bernie Madoff type loss . I

46:34

saw there was a number of pension

46:36

funds .

46:38

That are invested in it that were invested in this goddamn

46:40

FTT and FTX .

46:42

There's a lot of people that lost a lot of money in

46:44

this Poof See that Maddow

46:46

stuff .

46:47

It's just he never had any

46:49

. The people invested in . They were just giving him

46:51

money . He didn't invest any . They weren't

46:53

making anything off their investments .

46:55

Yeah , so on paper the made-up thing is a

46:57

whole different thing .

46:58

Yeah , that's a whole different thing , but that's actually

47:00

a good thing to look into , for sure , did we do him yet or

47:02

no ? No no .

47:07

That was a goodo . Was Barry Minko

47:09

the ZZ Best carpet ?

47:11

Yeah , Z Best , Z Best carpet Cleaning or

47:13

whatever . Yeah .

47:14

That guy was a hero . Oh yeah

47:16

, he was good Dude

47:18

. That guy didn't care , so that guy was

47:20

just straight fraud . I mean document

47:22

fraud , not digital fraud . I

47:25

mean on paper , in your face fraud

47:27

Insurance fraud he did it the old school way

47:29

.

47:29

Yeah , in your face , fraud , insurance fraud . He did it the old school way . Yeah , oh , we burnt down

47:31

the uh office . That's right .

47:33

That's right come visit the new office

47:35

and you pay construction guys to show up at some

47:37

empty place .

47:39

But then they say like anybody that makes that kind of money

47:41

, like you have to , you have to become

47:43

crooked at some point I know I was thinking you were

47:45

going to go there with that . Yeah there's some deal

47:47

or something that is made in your lifetime

47:49

where you're like okay , I can either go this way or

47:52

this way . What's the right way and what's the wrong way

47:54

? You got to go the wrong way .

47:55

Hmm yeah , I figured

47:57

you were going to bring that up .

47:58

I had a feeling matt would bring that up

48:00

as well . Why was ?

48:01

well , it came up on those other ones

48:03

. I remember you you were saying that on , like

48:05

the barry mink oh , yeah , yeah , that's what I'm saying .

48:08

Yeah , you have to , you have to do something wrong like

48:10

, yeah if you get , yeah if you're getting ahead .

48:12

That was like the point you made on that story was

48:14

like anybody gets that rich has

48:17

done something along the way . I think was kind of along the along

48:19

the lines of what you were saying .

48:20

Yes , has broken a rule or been a rule

48:22

, and I remain politely disagreeing

48:24

with them .

48:25

Politely .

48:26

A debate . It is a debate .

48:27

Yes , it's non-debatable right

48:29

now , but continue . I'm not going

48:31

to say that there's not bad actors . Of course there's going to be

48:33

bad actors , but

48:46

there's still for sure , exists for sure . We only hear about the bad ones . Yeah , you only ever hear

48:48

about the bad ones . Now , think about that . Think about that . There's a ton of boy scouts out there

48:50

, right ? You never see the newspaper article

48:52

of the , the guy that helped the old lady across

48:54

the street .

48:55

You never do it's not a juicy story .

48:57

It's not a juicy story , but instead you hear about the gunshots

48:59

and the whatever kind of shit that went down or

49:01

the cop that got shot . That's what you hear about .

49:03

You never hear about the good yeah , you never hear a good

49:05

story , but I'm saying for a lot of .

49:08

It's debatable yeah , I know

49:10

what you're saying , though , matt , and I know what you're saying and

49:12

I think yeah , we can meet in the middle of that one I think

49:14

and I'm probably somewhere in the middle on

49:16

it too I feel like there's probably a

49:19

lot of people that do , but a lot of people that don't , probably

49:21

somewhere in the middle , you know .

49:23

I'm just saying the ethical . There's a lot of

49:25

unethical .

49:27

So you're saying you've got to break a rule here .

49:29

There's a rule , there has to be some sort of rule

49:31

that is broken along the way . They might say , hey , this

49:34

isn't the . You know , I

49:36

wouldn't . They might say I don't , I wouldn't think of it as

49:39

doing something wrong . Something small , yes

49:41

, but something small could always be something bigger

49:43

to somebody else down the ladder . I disagree

49:46

. I think there's just an element

49:48

of hater that people

49:50

with money , I mean if

49:53

I had a couple of Lambos outside

49:55

of the house and yeah . But I'm saying there's probably

49:58

something I did along the way that that

50:00

enabled me to get those .

50:02

OK anyway , moving on , best

50:04

of luck with altruism , matt . Thank you , so

50:06

I'm investing tomorrow One day before

50:10

he was scheduled to testify testify before

50:12

the US House Committee on Financial

50:14

Services Bankman Freed was

50:16

arrested . That was on December 12

50:19

, 2022 . Freed

50:24

was arrested . That was on december 12 2022 . At this point

50:26

, he was charged with wire fraud , conspiracy to commit

50:28

wire fraud , securities fraud , conspiracy to commit securities fraud and money

50:31

laundering . After

50:34

10 days , sam was extradited

50:36

from the bahamas to the united states and

50:39

he was released on a 250

50:42

million dollar bail . Million

50:44

m car doors only go like this yeah

50:46

at the time and still to this day

50:49

, it's the largest bail bond in

50:51

us history did that come from his own finances

50:53

, you think , uh , his parents , his , parents .

50:55

Now bill bond is an actual , the actual money

50:57

. Like you only have to pay a certain amount , like a certain

50:59

percentage of the bill bond , correct ? 25 ?

51:01

mil , you gotta pay 10% , 10% of it

51:03

, okay .

51:04

Or that dude will come after you with the mullet

51:06

, that's right Dog , the bounty hunter

51:09

.

51:09

Yeah Him and like his wife .

51:10

Yeah , she's like go get him dog . I think

51:13

that's in Hawaii though

51:15

PS .

51:15

There on HBO it

51:17

came out like 20 some years ago . It was called

51:19

Family Bonds . I kind of

51:21

remember that it was about a bail bond family

51:23

. So , as chance would have it , I know a guy who's a

51:25

bail bondsman . There's so

51:28

many aspects to that job but in bail bonding

51:30

you can be just a bondsman

51:33

. But you could . If you're going to be a bondsman

51:35

, you're going to need to rely on a bounty hunter or

51:38

you can do it yourself . This family

51:40

, this family bonds . This show

51:42

was about this family in Jersey that were both . They

51:45

ran the , the bail bond house , or the

51:47

house the the bail bond uh business

51:49

, but they were also the bounty hunters to go get

51:51

the guys that were skipping bail . So they did

51:53

it all . Yeah , it was amazing , great

51:55

show .

51:56

Absolutely Great show .

52:02

I'll come to somebody's house dressed like Boba Fett , yeah with

52:04

the gun Can't be all shit Jetpack .

52:06

Yeah , jetpack , fly down , be

52:09

great .

52:10

I know what he's here for . Yeah , at

52:12

least you'll avoid the traffic on 81 . Oh

52:14

, I know right . So on January 3rd

52:16

2023 , of course

52:19

, sam pleaded not guilty to

52:21

all charges . Now , one month later

52:23

, in February , four

52:30

additional charges were brought against him . These related to him making more than

52:32

300 political donations using funds from customer

52:35

accounts . Fun fact , matt Sam

52:37

Bankman Freed was the second largest

52:39

individual donor to the joe biden 2020

52:42

election , with a total 5.2

52:44

million . That was after uh

52:46

soros no , no , that

52:48

was after michael bloomberg , bloomberg

52:50

after bloomberg , and he was also

52:53

the second largest individual

52:55

donor to the 2022 Democratic

52:58

Caucus , with a total donation value

53:00

of $39.8 million

53:02

, which was second to .

53:05

Soros . That is correct . Oh , so that was okay

53:07

, Yep .

53:08

I'm sure that was all clean money though . Yep , well , it was his

53:10

customer's money . Yeah , that was all well-earned , yeah , clean

53:12

money .

53:13

I did hear a thing on . I was

53:15

listening to a podcast about this guy and

53:21

they said that he did donate to both sides though too maybe not as much on the republican

53:23

side , but he was playing both sides . I guess .

53:24

I looked that number up just to make sure , because I'm

53:26

happy to be , you know , clear on

53:28

both of this . On the

53:30

uh for the , the 2020

53:32

election , he didn't do shit on the 2022

53:35

democratic caucus . Compared to

53:37

that 39.8 , he had contributed 292

53:40

000 to the republicans

53:42

.

53:42

The republicans , that was it 292

53:45

000 versus 39.8 million

53:48

that's a lot more , but do you think he was doing it

53:50

on both sides for like protection

53:52

almost ?

53:53

like hedging his bets yeah , like , almost like . Oh , if one

53:55

or the other gets in , I guess you would think if

53:57

you were doing it more that way , you , I honestly think this

53:59

guy , the way that this guy's mind worked I

54:01

think it was really for the issues Like

54:04

I , I really I I wholeheartedly

54:06

believe that that he he dug deep enough

54:08

on what these guys cared about

54:10

when it came to like at the time

54:12

, so like pandemic prevention

54:15

or earthy shit

54:17

or whatever Earthy shit that's

54:20

great yeah .

54:23

You earthy shit or whatever earthy shit , that's great .

54:24

Yeah , you know he was . He was actually like he was concerned , so he was really looking at the , not

54:26

looking out for himself , because they were saying maybe it was to like

54:28

hedge his bets , like , oh well , then if something comes down

54:30

the road and you have political connections

54:32

, this way you could say hey man , look , I donated to your campaign

54:35

.

54:35

Get me out of this , that's right yeah , but the that's

54:37

like a , that's like a political

54:39

thing and I think you guys would agree with me

54:41

like it's . It's like rich people want to be democrats

54:44

, they want to be like oh , I feel for the poor , I want to help , I want

54:46

to give . This sounds like he was like so rich

54:48

, he's kind of like going democrat , like that , because he

54:50

wanted to give , like I'm giving , even

54:52

though what dave was saying I think they play both sides of the fence

54:55

I disagree , but

54:57

, needless to say , this is not the time for

54:59

political debate no With the big

55:01

2-2-4 , 2-2 , 2-0-2-4

55:04

.

55:04

So Bankman Free Election , his let's

55:07

see his trial began . Oh

55:09

nope , I'm going to go back one . So a month later , we're

55:11

now in March of 23 . Sam

55:14

was indicted for sending $40

55:17

million to China in

55:19

hopes of them unfreezing his crypto accounts that

55:21

were sitting there .

55:22

Yeah , I think it's probably at the time when they outlawed

55:24

everything over there , correct ?

55:25

And they were shutting it all down . They were saying , look , dickhead

55:28

, you made this money over here or we're

55:30

waiting for you to go through your court process

55:33

in order for us to have to liquidate this shit

55:35

. Anyway , your assets are frozen , we're

55:37

not releasing these funds . So

55:42

ultimately he wanted , he tried to grease the wheel , essentially

55:44

bribe . Uh , hey , man , look , can you here's 40 million bucks

55:46

, can you unfreeze my account so I can get whatever's

55:48

in there ?

55:49

do you know , like how they um speaking of that

55:51

over in china where they had people

55:54

basically unlocking this

55:56

currency how they do it ? They use like um

55:58

computers basically to uh

56:00

, now you got to run like a ton of computers

56:03

, I guess a lot of computing power to you

56:05

have to basically verify the . I say

56:07

like bitcoin , for instance , or ftt . You

56:10

have to like verify that it's

56:12

a legit I think they use the

56:14

term blockchain of coins so

56:17

they farm that out to people

56:19

with computers . You know all these computers

56:22

to basically farm this , this

56:24

cryptocurrency , and if you do that

56:26

for them , they'll reward you with you know . You

56:29

know basically bitcoin or whatever cryptocurrency

56:31

yeah , that's correct , you can .

56:32

Anybody can do this yeah you can go out and buy

56:34

processor and you can buy , do whatever

56:36

, whatever it is out there and you can just

56:39

buy as many as you want . You want , you can get air as

56:41

you want . You can get air-cooled ones , you can get water-cooled

56:43

ones . Put them all in a room and just let them run

56:45

.

56:45

I keep on thinking of weird science , like trying to get into it

56:47

, like going through those things that they were going through on the

56:49

computer .

56:50

It's exactly that . Like big blocks . It

56:53

is exactly that .

56:54

We ran into that with my son because he's a gamer

56:56

and he built . He has his own PC . He

56:58

built and he was buying parts for it and

57:00

upgrading . He wanted to get a new graphics

57:03

card , a GPU , that's it

57:05

. It's the graphics card .

57:06

That's what does the shit .

57:07

Yeah , the graphics card so

57:09

Not the processor .

57:10

What is it ?

57:11

Not AMD . What's the big graph ? Nvidia

57:13

, nvidia . So their stock

57:15

was going through the roof and

57:18

the prices of these graphics cards

57:20

were through the roof and my son's like , why can't

57:22

I , why are these ?

57:24

like . What do you mean ? What is the price of a graphics card

57:26

?

57:26

let's just say like retail is 250

57:28

dollars . Let's just say okay they were selling for 500

57:30

, like they were sold out everywhere , and then if you can find

57:33

one , like on ebay or something , they're double the price

57:35

because so many people were buying them

57:37

for this shit to do this instead

57:39

of gaming . So nvidia said

57:41

like oh um to the retailers

57:43

like , hey , try to sell to like gamers , like

57:46

you know what I mean . But they can't control that , they're just trying to sell

57:48

product . But I thought that was an interesting

57:50

side thing to all . This is how that affects

57:52

that whole industry supply and demand man so

57:54

the smart money would be take your money , invest in at

57:56

that time nvidia dude , so have

57:59

you so ?

57:59

fun fact . It's amazing , my , as my

58:02

wife pointed out , the value of nvidia

58:04

to me , probably by now , like two years ago , take

58:08

a look at the action on nvidia . Look at , look

58:10

at nvidia's stock for like the last

58:12

five years . Oh , it's crazy , yeah , it will

58:15

. It's almost like bitcoin . Like

58:17

it is insane how big and how

58:19

how much money that place has amassed . It

58:21

is well not it that place , but the value

58:23

of that company is unreal . Good

58:26

for them , I say yeah , they're .

58:27

I saw their I think it was a ceo and

58:30

he was doing a presentation on this new

58:32

uh processor

58:34

. They're coming out with a graphics card

58:36

, basically , and it was like I forget how

58:38

many billions they invested in developing

58:40

this thing but , it . I mean the

58:43

company's like on cloud nine

58:45

right now , sure , doing so well is he a

58:47

young kid , their ceo ?

58:48

is he a little guy ?

58:48

he's like our age , probably if I had to guess

58:51

the 50s from what I remember the video

58:53

. It was on youtube .

58:54

I was watching it , but uh yeah , his name's sam bankman

58:56

, freed , and uh okay

58:58

, sam bankman locked up .

59:00

Yeah , for sure .

59:02

So , after all that March do-do-do-do , china

59:04

tried to bribe China . Sam's

59:08

trial began in October of

59:11

2023 , and

59:13

it definitely didn't take long to conclude

59:16

. The trial ended not but a month

59:18

later . In November , bankman

59:20

freed was found guilty of all

59:22

charges , which by now included

59:24

two counts of wire fraud

59:27

, two counts of conspiracy

59:29

to commit wire fraud , conspiracy

59:31

to commit securities fraud , conspiracy

59:34

to commit commodities fraud and

59:36

conspiracy to commit money laundering

59:38

. He ended up getting

59:40

25 years and a fine of more

59:42

than $11 billion . That's

59:45

with a B car doors . Go like this . Yeah

59:48

, his first appeal was

59:50

filed not but a week ago , on

59:52

April 11th 2024 , at

59:56

his peak , again at just shy

59:58

of 30 years old . Peak

1:00:04

, again at just shy of 30 years old , he had maintained a personal

1:00:06

wealth valued at 26 billion with a b dollars . Today at 32 , not but

1:00:08

two years later , he is worth

1:00:10

zero .

1:00:11

We shouldn't say that about somebody .

1:00:13

He is zero it's ignorant

1:00:15

his wealth he's worth something his will

1:00:17

, his wealth , somebody zero , that's right . I

1:00:20

bet he is worth something to his cellmate when he's

1:00:22

looking to make a chi-chi . Yeah right , yeah

1:00:24

.

1:00:24

He'll get out someday , though you know you

1:00:26

think he'll serve the full 25 ? Probably not

1:00:28

. No , I think Maybe 10 .

1:00:30

Yeah , he ain't going to even serve that , He'll serve five

1:00:32

.

1:00:33

I think they were ballparking 18 , but I would

1:00:35

point I would not be surprised

1:00:37

if it gets out sooner and then he'll get out write a book

1:00:39

and have like yeah he'll make , he'll make millions

1:00:41

again and then he'll have like , uh , you know , a

1:00:43

show or a movie I bet

1:00:45

in prison he'll

1:00:47

get in prison . He's learning to pee sitting down yeah

1:00:50

, he'll be selling bitch coin bitch

1:00:54

that is awesome yeah so it's interesting

1:00:57

when you , you know , as we talk about this , we

1:00:59

we're going through this , we're talking about

1:01:01

this guy's motive . Really , what

1:01:03

is his motive ? Now , there's the Barry

1:01:05

Minkos of the world right who took

1:01:07

customers money , complete fraud , and

1:01:10

I mean by customers , I mean investors

1:01:12

, all kinds of shit . They frauded all kinds of people

1:01:14

to make all kinds of money to buy ridiculous houses

1:01:16

, lamborghinis , boats , you

1:01:19

name it , just like the wolf of wall street guy . Same

1:01:22

shit , same thing . This guy

1:01:24

, sam bankman , freed . When he

1:01:26

moved to the bahamas and even to the point

1:01:28

where he was arrested , he

1:01:30

lived in an apartment with two roommates

1:01:32

two roommates this is a

1:01:34

billionaire with a , b car

1:01:36

doors car doors go like this like

1:01:39

he was not living on some kind of extravagant , huge

1:01:41

compound , ridiculous shit

1:01:43

. He just lived in a fucking

1:01:46

apartment with two roommates .

1:01:47

I feel like people do that shit sometimes because

1:01:49

it looks cooler Like I'm gonna , like

1:01:51

I saw , like- .

1:01:52

You just wanted like friends to hang out with , like an entourage or

1:01:54

something .

1:01:54

I saw , like the one celebrity I

1:01:56

think it was like who played Batman

1:01:59

, Christian Bale . He drives like a 98 Tacoma

1:02:01

. That's awesome , which , yeah , it's cool

1:02:03

. And I like Christian Bale . He's . I

1:02:05

like him as an actor and I don't know him as a person

1:02:07

, but I'm thinking like he's

1:02:09

. Sometimes people probably do shit just to be like different

1:02:12

.

1:02:12

Well , Clint Eastwood's like that too they

1:02:15

don't oh 92 . Typhoons .

1:02:17

GMC Dude . I ended up looking up those

1:02:19

. It was months ago . I was looking up values

1:02:22

of old Blazers and I was looking up this

1:02:24

. Those Typhoons were sharp as hell , they were awesome

1:02:26

.

1:02:26

I think it takes a shit ton to run those

1:02:28

though , and there was a pickup version called

1:02:31

the Cyclone there was yeah , there

1:02:33

was oh , okay

1:02:35

.

1:02:35

So when we

1:02:37

talk about things like billions , right , and we will

1:02:40

jokingly say things like car doors go like this

1:02:42

instead of like this . when

1:02:45

you hear somebody say a billion dollars

1:02:47

, none of us and I mean none

1:02:49

of us has any concept of what that means you

1:02:51

can't fathom you just you don't even know

1:02:53

, so like

1:02:56

to even to me when I

1:02:58

hear something like $750

1:03:02

million , to me , just the the

1:03:05

, the fact that there are three numbers in that

1:03:07

, that seven , five , zero to me

1:03:09

sounds greater than 1 billion . Right

1:03:11

, and that's even to me , just because it just I

1:03:14

can't understand , I can't fathom having

1:03:16

that much money . Right . So we're

1:03:19

going to go through a little exercise here to for all

1:03:21

of you , to , to , to wrap your head around .

1:03:23

I'm having flashbacks , Matt . How about you looking

1:03:26

at this ?

1:03:26

sheet . This is well , that's my code , that's

1:03:28

my coding , all right . So the the size

1:03:30

of a dollar bill right Size

1:03:32

of a dollar bill , pull one out of your wallet right now is

1:03:35

6.14 inches by

1:03:38

two point six , one inches and

1:03:40

it is basically one half of

1:03:43

one , one hundredth

1:03:45

of a millimeter . It's , it's it's point one

1:03:47

, I'm sorry , it's point one millimeter thick and that's the

1:03:49

actual paper bill that's the bill . it's one

1:03:51

tenth of one millimeter thick , again

1:03:54

six inches , and change by two and three

1:03:56

quarter inches . That's how big it is . So

1:03:58

from a diagram perspective

1:04:01

, comparing 1 million to 1 billion

1:04:03

, if you take 1

1:04:05

million with an M 1

1:04:07

million $1 bills and

1:04:10

you lay them out and you basically make a carpet

1:04:12

out of them , right , you make it to cover an area

1:04:14

you could cover two

1:04:16

football fields . That's for a million , a million .

1:04:18

Hold on , slow down , sam , I'm going to be's for a million , a million . Hold on

1:04:20

slow down , sam .

1:04:21

I'm gonna be sick for a second all

1:04:23

right , you take a million one dollar

1:04:25

bills , you could cover two football fields

1:04:27

okay if you take

1:04:29

a billion one

1:04:32

dollar bills , you're covering four

1:04:35

square miles damn

1:04:38

what is that ?

1:04:39

like ? How many football fields is that ? Well , I mean

1:04:41

, it's a , it's a now that , now that I have like

1:04:43

I'm looking at the football field .

1:04:45

Since you asked that question break it down . Well , so

1:04:47

this is easy . A billion is

1:04:49

1000 million . So

1:04:52

if a million bills

1:04:54

can cover two football fields , a

1:04:57

thousand that's essentially 2000 football

1:05:00

fields is what you're covering with a billion

1:05:02

. That's insane , right ? So I'll take that

1:05:05

a step further . So that's just . That's just covering

1:05:07

a blanket size . So let's

1:05:09

go on from for height . For

1:05:12

, for an even better perspective , stack

1:05:14

and paper . Stack and paper , the

1:05:16

again the thickness of a dollar

1:05:19

. If you take one million

1:05:21

of those and you stack them all up , you

1:05:24

will achieve 358

1:05:27

feet , which is approximately like a 30

1:05:29

to a 35-story building . So

1:05:31

if you take now , that's a million . A

1:05:34

million is 358 feet tall , again

1:05:36

like a 30 , 35-story building , again

1:05:39

like a 30 , 35-story building

1:05:41

. A

1:05:47

billion bills stacked on top of one another is almost 68 miles high . To be clear

1:05:49

, jets fly at approximately

1:05:52

6.8 miles . Jets

1:05:54

, they're flying at 36,000 feet .

1:05:59

This is at 68 miles , so that's higher than 40 stories of sheer adventure

1:06:01

.

1:06:02

like bruce willis , I was thinking , I think I was

1:06:04

35 , 40 stories .

1:06:06

You're in the stratosphere or the troposphere

1:06:08

at 68 miles yeah

1:06:10

, you're almost out of the uh , correct ?

1:06:12

yeah , that's one billion space some

1:06:14

cats like bezos and stuff . They're worth what ? Hundreds

1:06:16

on billion ? Jeffrey bezos ?

1:06:18

you can actually you could do an internet search

1:06:20

for that right now . Jeffrey bezos is the second

1:06:22

ridgest man in the world today

1:06:24

. Right , this , oh , tesla took over no

1:06:26

didn't he ? Oh , who ? Number one guy is the louis

1:06:29

vuitton guy from france , louis

1:06:31

vuitton , the owner of louis vuitton and

1:06:34

because it's not just louis vuitton , there's a lot of

1:06:36

conglomerate .

1:06:36

Yeah , I always strip

1:06:38

off when they talk about , like those billionaires

1:06:41

, if they could give every person in the world x

1:06:43

amount of money . You know what I mean and still have

1:06:45

something left billions like you , can give

1:06:47

every person in the whole world this amount

1:06:49

. I forget what the number was .

1:06:51

It's again wrapping

1:06:53

your head around a billion versus a million

1:06:55

, a billion 1 000 million

1:06:57

. It's essentially 1 000 increments

1:06:59

of 358 feet , which is going to get

1:07:02

you to 68 fucking miles . That's

1:07:04

crazy .

1:07:05

Yeah , it's like having the basement down here

1:07:07

and like shoe boxes of like $100 bills

1:07:09

Hell yeah , like stacked to the brim With grill marks

1:07:11

. And it'd still be like a couple million bucks .

1:07:13

Shit . Yeah , that wouldn't even it wouldn't even be . When

1:07:16

you think about Escobar and where they were , all the money they

1:07:18

were moving , the millions and millions they

1:07:20

had to like put it in houses , like build

1:07:23

it into the walls of the houses . They were building their own pyramids

1:07:25

.

1:07:25

That's like in Blow . Remember Exactly In Blow he had

1:07:27

to get like new houses just to put the

1:07:30

regular cash money away .

1:07:31

You have so much money , you don't know what to do with it .

1:07:33

That was only like a couple million , though . That's like three

1:07:35

, four million .

1:07:36

And he wasn't doing it with ones .

1:07:38

Yes , those were $100 bills in the 50s .

1:07:40

I got one last example for you , one last

1:07:42

. So what did we do ? Now We've done area , we've done

1:07:44

height , now I'm going to do distance , this

1:07:46

one , I think , in my opinion , it's probably

1:07:49

the easiest for me to wrap my head around , because

1:07:51

I'm always on the fucking ground , right , I'm not that

1:07:53

high in the air . So distance

1:07:56

Take 1 million bills

1:07:58

, 1 million $1 bills . You

1:08:00

line them up end to end . That'll take

1:08:02

you 96 miles .

1:08:05

For a million dollars .

1:08:06

A million bills , a million dollars in

1:08:08

ones , it'll take you from here to , basically , city

1:08:10

Line Avenue , just outside of Philadelphia . It

1:08:12

won't get you from your house , dave , from your

1:08:15

house to City Line Avenue , again

1:08:17

just outside of Philly . You're 10 miles short of Philly

1:08:19

. That's 96 miles miles

1:08:22

. Damn , you take a billion of

1:08:24

those . You can circle

1:08:26

the earth four times

1:08:29

oh my god , yeah , that's

1:08:31

crazy a billion one

1:08:33

dollar bills will get you around the

1:08:35

earth four fucking times

1:08:37

, versus the million that'll

1:08:39

get you from here to philly philly , mind blown on that . So there you , from here to Philly

1:08:41

, philly , philly , mind blown on that . So there , there , there it is . That's really

1:08:44

the best way If I could put anything into perspective

1:08:46

for anybody , like when you put math and measurement and obviously

1:08:49

how big these notes are . That's how it works out

1:08:51

and that's crazy .

1:08:52

So that is a lot . So with that billion

1:08:55

, this

1:09:02

guy had 26 of those millionaires are poor . Yeah , well , it just goes to show too , like uh

1:09:04

, you have that much money like to to invest in something like this . You're probably like , yeah , whatever

1:09:06

, I lose a billion and you're worth 26 yeah

1:09:09

, but like zap said , his life's worth

1:09:11

nothing now right , nothing zero now

1:09:13

, you're right , matt .

1:09:14

His life , I'm sure , is worth something to his mother and

1:09:16

father yes , who profited ? Something who profited

1:09:19

well off of his ventures .

1:09:20

Yeah , I'm sure they got a little bit . I'm sure they're not living

1:09:22

in an ugly house somewhere .

1:09:23

No , All in all , I think he ended up giving them between

1:09:26

the cash and the house

1:09:28

. I think they ended up getting 32 or 35

1:09:31

million . Yeah , that's good

1:09:33

money there , which means a million , just

1:09:35

millions , so they could go back and forth from here to Philly

1:09:38

32 times .

1:09:39

These people are so narcissistic they can't get out while

1:09:41

they're ahead .

1:09:42

So I was going to ask you guys , and I figure I

1:09:44

wait till the end . So neither of you and I

1:09:46

haven't myself either have ever invested in

1:09:48

any kind of cryptocurrency .

1:09:49

I was this close . So I had mentioned earlier , I got

1:09:51

the wallet and I got the whatever the

1:09:53

exchange thing and at

1:09:55

one point I was really into it . Hell , I

1:09:58

was actually going to go out and buy graphics cards to try

1:10:00

to do that shit , but the juice

1:10:02

was not worth the squeeze for that Worth the squeeze Matt

1:10:04

nothing for you .

1:10:05

None of that in my portfolio . No , I

1:10:08

got nothing .

1:10:09

Start ODB coin . Yeah , you should

1:10:11

put that out .

1:10:11

I got some Susan B Anthony's , though I

1:10:14

do also which one's that the

1:10:17

? Half dollar one . No , Susan

1:10:19

B's are the $1 . Yeah , Susan B's are

1:10:21

the $1 .

1:10:22

I got you .

1:10:22

JFK's or the whatever are the 50 cents ?

1:10:24

I got some Chuck E Cheese Shit yeah . Yeah

1:10:26

from the arcade man . Hell yeah Back in the 80s

1:10:28

.

1:10:28

That's good stuff . Susan B , didn't she like sew the flag ? Was

1:10:31

that her ? Yes , I

1:10:35

get her confused . No , in the back of the bus .

1:10:37

That was Rosa Parks . What did

1:10:39

Susan ?

1:10:40

B Anthony , do she

1:10:43

signed a declaration of independence ?

1:10:45

That sounds like somebody transitioning

1:10:47

. Susan B Anthony , susan B . Anthony

1:10:50

.

1:10:50

Who's that ?

1:10:50

That's Susan . No man , she's

1:10:53

on the binary code or whatever . Susan B Anthony , susan

1:10:55

B Anthony . No , she be Susan Susan

1:10:59

B . Anthony , he ain't lying I

1:11:04

made my day top shelf .

1:11:05

Yes , good , all right well

1:11:08

, I hope we all learned a lot today . What uh

1:11:11

a million versus a billion ?

1:11:13

and uh , you know , easy

1:11:15

come , easy go I enjoyed

1:11:17

it because , like I said , I um , I enjoy that you

1:11:19

brought this up because crypto in general

1:11:21

I'm interested in but I don't want to be

1:11:23

left outside looking in at the party . You

1:11:25

know like I . You know what I'm saying Like a couple of years

1:11:27

from now . But I feel kind of confident

1:11:29

now that maybe I'll be okay , I

1:11:32

don't invest in this , but maybe not stick

1:11:34

with buying .

1:11:36

They're the largest , they're

1:11:38

the longest standing , they're good

1:11:40

. I'm saying , if you're going to get into that wild

1:11:42

ass , or you could just take your money , drive up to

1:11:44

the casino and get the same result .

1:11:46

Throw it out that way , yeah .

1:11:47

Yeah .

1:11:48

At least . Well , I guess this is kind of like gambling too . It's

1:11:51

the same kind of rush . It goes up , it goes down like

1:11:53

a stock . Sure , you

1:11:56

obviously a little more stable .

1:11:57

I liked it . It was , it was really interesting . Like I said , I

1:11:59

told you guys I didn't read . I tried to read into

1:12:01

this . It

1:12:04

kind of made like my frontal lobe hurt a little bit , I felt

1:12:06

. I felt like a mind fucked a little

1:12:08

on this , but it is it's . It's crazy

1:12:10

, it's it's

1:12:15

just too . I don't know . There's who knows . It could be something

1:12:17

else , or people like invest in this , invest in that

1:12:19

.

1:12:20

I will say back to that , like talking

1:12:22

about the VR world and all that , honestly , like

1:12:27

there's people that talk about that . There's people that are buying real estate in the

1:12:29

virtual world now ? Yeah , for sure . So like , for instance , snoop Dogg had a

1:12:31

piece of real estate in the virtual world I

1:12:34

think it was him , for instance and a lots

1:12:36

next to his virtual world house are

1:12:38

worth X amount of dollars , like people are paying

1:12:41

a premium because down the

1:12:43

road that's what it's going to be . People are going to put VR headsets

1:12:45

on and live in their avatar in these worlds

1:12:47

and stuff . So , it's stuff that all

1:12:49

you know it seems like science fiction , like

1:12:51

the matrix , yeah .

1:12:53

You think that's really going to happen , though ? I mean , they've been talking about

1:12:55

that on sci-fi for so long .

1:12:56

I promise you it's going to happen .

1:12:57

It's going to happen . It's happening now . There's people that

1:12:59

don't leave their house and just live

1:13:01

with their avatars in their VR world now on

1:13:03

a smaller scale .

1:13:04

And they live in their parents' basement

1:13:07

.

1:13:07

Nothing wrong with that .

1:13:08

But Zab , that was a cool one . I'm glad you brought it in . I like

1:13:10

these white collar crimes . The financial stuff

1:13:19

.

1:13:19

They're good Again . I'm sure he was great at math

1:13:21

and of course anybody's going to see oh , these numbers

1:13:23

are grown . Yeah , I'm worth billions . That's great . But

1:13:25

just like me , this guy had no concept

1:13:27

what money was or how much

1:13:30

money he had , and he's just I don't know

1:13:32

playing with it . I , I don't know .

1:13:34

If they want to

1:13:36

call it the money . Maybe it would have panned

1:13:38

out , Maybe they would have gambled the money

1:13:41

and replaced it , and none of this would ever happen

1:13:43

, I think , when you take real people's money and you

1:13:45

turn it into something that was

1:13:47

this and you're the one that created it and

1:13:50

if you're the one that wants to make money on it

1:13:52

.

1:13:52

But you also want to be that altruistic and make

1:13:54

sure that also other people are doing well . Everybody

1:13:58

can't win all the time Somebody's going to get burned .

1:13:59

And what was he ? He was sentenced to . How many years

1:14:01

? Again 25. , 25 . For most

1:14:03

of his charges were conspiracy right , he

1:14:05

was conspiring to do all this shit

1:14:08

.

1:14:08

So it's like a Don and a think

1:14:12

of the Godfather , right ? So the Godfather wasn't the one

1:14:14

killing people , but he pushed

1:14:16

the buttons . He had the people do it for him

1:14:18

. Same concept . So , while he wasn't

1:14:20

necessarily pushing the buttons , he had the

1:14:22

developers and the programmers and

1:14:24

the whomever and the salesmen and you name it , doing

1:14:27

all of the stuff that he wanted them to do .

1:14:28

Kind of like Manson with money .

1:14:30

Not unlike Manson . There you go , there you

1:14:33

go . Mind control yes , mind over matter

1:14:35

. Nice .

1:14:36

Doesn't matter . I got my mind on my money and

1:14:38

my money on my binary Bitcoin

1:14:40

mattress FTX .

1:14:42

Yep , but yeah , that was a good one . We'll

1:14:44

definitely be back next week with a vintage cinema

1:14:47

review . I think we're doing die hard , so that'll

1:14:49

be a good one . Oh , nakatomi , yeah

1:14:51

, so , and then a week after that

1:14:53

, hopefully back to true crime . We'll see , though

1:14:55

you never know In the basement , yeah .

1:14:57

So guys got anything else ? No

1:15:00

, I'm done , my mind's burned out . Yeah , thank you for

1:15:02

Sam Bankman Fried , my

1:15:04

my , my Fried . Oh sorry .

1:15:06

I was saying my mind is fried

1:15:08

, macaulay Culkin , from all those big , big

1:15:10

words .

1:15:11

Yeah , so don't forget to find Old Dirty Basement

1:15:13

on Facebook and Instagram at Old Dirty Basement

1:15:15

, and on TikTok at Old D basement podcast

1:15:18

. I guess that's it for now , so we'll catch you where on

1:15:20

the flip side If we don't see you sooner

1:15:22

, we'll see you later .

1:15:24

Peace . Thanks

1:15:27

for hanging out in the old , dirty basement . If

1:15:30

you dig our theme music like we do check out the tsunami experiment

1:15:33

, find them on Facebook . Their music

1:15:35

is available streaming on Spotify and Apple

1:15:37

and where great music is available

1:15:39

.

1:15:43

You can find us at old dirty basement on Facebook and Apple and , where great music is available

1:15:45

, you can find us at Old Dirty Basement on Facebook and Instagram and at Old Dirty Basement Podcast on TikTok

1:15:47

Peace , we outie 5,000 . You

1:16:07

.