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Solana’s native token SOL has been one of the best-performing cryptos of the year, up more than 500% so far, but you wouldn’t have guessed that would be the case given how closely tied the blockchain was to FTX, which held huge amounts of SOL and was a big supporter of the platform. The blockchain also experienced numerous outages in 2022. But Anatoly Yakovenko, Solana’s co-founder, says the discipline imposed by FTX’s collapse, as well as improvements to the technology, have made Solana stronger.
On this episode of Unchained, Yakovenko talks about the impact of FTX’s collapse, his early impressions of Sam Bankman-Fried, the SEC’s designation of SOL as a security, how entrepreneurs are leaving the U.S. because of the regulatory risk, SOL’s share of the stablecoin market, and why he thinks it’s inevitable that finance will eventually run on something like Solana.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
How the Solana ecosystem weathered the FTX crisis
How FTX’s collapse was like ripping off a band-aid for Solana
Anatoly's initial impression of SBF as a “super genius”
Why, despite SOL's strong 2023 performance, the Solana ecosystem hasn't experienced a corresponding growth in active developers
What factors Anatoly believes contribute to the relatively low number of daily active wallet addresses in Solana
How Solana addressed and rectified the outage issues that were so frequent in previous years
Why Anatoly draws a parallel between Ethereum and Windows 95, and Solana and Windows 2000
Why he's not worried about Jump Crypto building a client for the blockchain
The ongoing debate within Solana on open-source versus closed-source culture, and the potential for future shifts
How the Solana Foundation is handling the SEC's classification of SOL as a security
Whether there's a trend of developers and founders relocating from the United States in search of a more supportive ecosystem
Why Solana holds a low market share of stablecoins across various blockchains, and the implications of this trend
Why Anatoly considers trading volume a more critical metric than Total Value Locked (TVL) in assessing blockchain success
How Web3 gaming has been flourishing on Solana
Why Anatoly is confident that DeFi will find its rightful place on the Solana network
The future plans for the Saga phone after its market challenges
What Anatoly thinks is the number one focus for Solana for the near term
Thank you to our sponsors!
LayerZero
Popcorn Network
Arbitrum Foundation
Guest:
Anatoly Yakovenko, Co-founder of Solana Labs
Previous appearance on Unchained: Will Solana Be the Execution Layer and Ethereum the Settlement Layer?
Previous appearance on Unchained: Can Solana Seize Marketshare From Ethereum With Serum?
Previous appearance on The Chopping Block: Anatoly Yakovenko on Why Solana Is Building the SAGA
Links
Unchained: Solana Saga review
Decrypt: Mad Lads NFTs Hit All-Time High as Backpack Taps FTX Lawyer for Exchange Launch
Op-ed by Anatoly on Fortune: Solana co-founder: 'To keep the next great American founder in America, Congress must regulate crypto. But first lawmakers should learn how it works'
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Welcome to The Chopping Block — where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest news. This week, the gang sits down with Ogle Crypto, a veteran negotiator in crypto hacks, to discuss the recent KyberSwap exploit, which involved an almost $50 million loss across various chains.
Ogle shares how he initially became a negotiator, including his first case in which he tracked down a group of hackers from Hong Kong when they fled to Great Britain after stealing $24 million in funds. Ogle also shares his negotiation tactics, the typical profile of hackers he encounters today and his empathetic approach towards these often young and financially struggling individuals.
Then the group raises concerns around the hype and marketing strategies of Blast, a new Layer 2 on Ethereum offering “native yields” that achieved $620 million of TVL in less than two weeks.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.
Show highlights:
How KyberSwap's sophisticated security was breached, resulting in an almost $50 million loss across various blockchain networks.
Why Tarun suspects the behind-the-scenes workings of an organized group, rather than a lone attacker, in the KyberSwap incident.
The evolution of crypto hacks towards more systematic and professional negotiations with hackers.
Ogle's journey into the world of crypto hack negotiations, highlighted by a fascinating case of pinpointing hackers who had fled Hong Kong.
Ogle's strategic approach to negotiating with hackers, balancing empathy and tactical communication.
Profiling the typical hackers in these scenarios, focusing on their youth, origins, and backgrounds.
Ogle's perspective on why he often finds a sense of understanding towards these young, misguided hackers.
Assessing the crypto industry's response to white hat hackers: Are they adequately rewarded for safeguarding the digital frontier?
The curious surge of investments into Blast, Ethereum's new Layer 2 contender, amidst swirling concerns and skepticism.
Robert's take on why the Blast phenomenon could signal a troubling trend, surpassing the chaos of 2017, paralleled by Tarun's analogy to a “decentralized Herbalife.”
Were Blast’s marketing tactics misleading or merely overly optimistic?
Hosts
Haseeb Qureshi, managing partner at Dragonfly
Robert Leshner, founder of Compound
Tom Schmidt, general partner at Dragonfly
Tarun Chitra, managing partner at Robot Ventures
Disclosures
Guest
Ogle Crypto, Crypto sleuth and negotiator
Links
Hacks
Unchained: $48 Million Drained from KyberSwap in Hack
Kyberswap’s hacker latest message
HackerNoon: Mark Cuban's Bane: How Iron Finance's $TITAN Crypto Crashed From $60 to $0
Cointelegraph: KyberSwap hacker offers $4.6M bounty for return of $46M loot
Blast
Unchained: Blast Surges to $300M TVL, Rapidly Gaining on Top Ethereum L2s Amid Concerns
DefiLlama: Blast TVL
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Vivek Ramaswamy is likely the biggest supporter of crypto among the current crop of presidential candidates. But his enthusiasm comes not from an inherent love of the technology or its principles themselves, but a dissatisfaction with what he calls the “administrative state” that’s stifled innovation in a number of important industries, crypto among them.
On this episode of Unchained, Ramaswamy discusses his radical plan to slash the number of people working at federal agencies; his three-point crypto policy plan based on the freedom to code as a protected form of expression, the freedom of financial self-reliance, and the freedom to innovate free from regulatory overreach; why the current orientation of the U.S. government towards regulation of the crypto industry by enforcement isn’t helping anyone; his plans to stabilize the U.S. dollar by pegging it to a basket of commodities that could eventually include Bitcoin; why he’s so opposed to central bank digital currencies; and what industries he thinks could benefit from the use of blockchain technology.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
how Vivek, who has a background in biotech, fell down the “crypto rabbit hole”
how the administrative branch of government doesn't work like it's supposed to, according to Vivek
why he believes the government poses a threat to the future of crypto
how he would respond to a situation in which the code of a smart contract is exploited
how Vivek would prevent the use of crypto for illicit ends
why he thinks that the current status quo in terms of crypto regulation is the “worst of all worlds”
Vivek’s plan to stabilize the U.S. dollar by pegging it to a basket of commodities, potentially including Bitcoin
why he is so against the creation of a central bank digital currency in the U.S.
how blockchain technology can be used to help the U.S. maintain its technological supremacy
Thank you to our sponsors!
Arbitrum Foundation
Phemex
Popcorn Network
Guest
Vivek Ramaswamy, 2024 U.S. Presidential Candidate
Vivek on The Chopping Block: Why Vivek Ramaswamy Wants Less Crypto Regulation
Links
Original speech unveiling his crypto policy plan at the North American Blockchain Summit 2023
Unchained: GOP Candidate Vivek Ramaswamy Makes the Case for Reduced Crypto Regulation
Bloomberg: Ramaswamy’s Crypto Deregulation Plan Is Scaring the Industry
CoinDesk: Ramaswamy Shares Crypto Plan, Making Him the Only GOP Candidate Who Has One
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The IRS sparked a storm of controversy when it released proposed new rules for crypto transaction reporting earlier this year. The new rules seek to define who is considered a broker, what types of transactions need to get reported, and the kinds of digital assets that need to be included, but many in the industry consider them overly broad and ultimately unworkable.
Lawrence Zlatkin, VP of Tax at Coinbase, and Shehan Chandrasekera, Head of Tax Strategy at tax software firm CoinTracker, discuss the crypto industry’s specific objections to the proposed new rules, and what might be a better way forward. They also delve into how the regulations would apply to stablecoins and NFTs, potential blockchain-based solutions for the reporting requirements, and what the likely outlook and timeline for the proposals to come into effect are.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
What the newly proposed IRS regulations around crypto are and when they are likely to go into effect
what entities qualify as a broker and why this may pose a problem
what the implications for the industry are if these regulations were passed
the number of additional reports the IRS is expecting to receive if these regulations are adopted
how the regulations would apply to stablecoins and NFTs
what the five types of brokers are under the proposed regulations and the three types that they exclude, according to Shehan
the unprecedented amount of comments submitted
what suggestions Coinbase and CoinTracker have in mind for better tax regulation
why Lawrence thinks that DeFi exchanges should be treated the same as centralized ones
whether people should have privacy concerns about the new proposals
what some blockchain-based solutions for tax reporting are, such as attestation tokens
what the next steps for the IRS proposed regulation are
how long it will take to actually implement these regulations
Thank you to our sponsors!
LayerZero
Popcorn Network
Guests:
Shehan Chandrasekera, Head of Tax Strategy at CoinTracker
Lawrence Zlatkin, VP of Tax at Coinbase
Links
Previous coverage of Unchained on crypto taxes, with appearances from Shehan and Lawrence:
Everything You Need to Know About Filing Your 2022 Crypto Taxes
Your 2021 Crypto Taxes: How to Handle NFTs, DAOs, Airdrops and More
Everything You Need to Know About Your 2020 Crypto Taxes
Why You Shouldn’t Trust Crypto Exchange Reports for Your Taxes
The IRS Is Cracking Down on Crypto Taxes: What You Need to Know
Could the Bank Secrecy Act Harm Crypto? Coin Center Thinks So
Infrastructure Investment and Jobs Act (117th Congress)
Proposed rule:
IRS proposed rule text: Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions
U.S. Department of the Treasury, IRS Release Proposed Regulations on Sales and Exchanges of Digital Assets by Brokers
CoinDesk: How the Crypto Industry Responded to the IRS Proposed Broker Rule
Twitter thread from Ji Kim of Crypto Council for Innovation
CNBC: President Joe Biden to sign the bipartisan infrastructure bill into law—here's how crypto investors will be impacted
IRS issues guidance, seeks comments on nonfungible tokens
Coinbase first comment letter
Coinbase second comment letter
CoinTracker comment letter
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Tiffany Fong has had an unusual route to crypto fame. After losing most of her life savings in the Celsius bankruptcy, she began posting on YouTube about her experiences and eventually received some leaked documents, which she shared with The New York Times and on her channel. The leaks gave her some visibility, and that’s when Sam Bankman-Fried began following her on Twitter.
Fong unexpectedly managed to carve out a relationship with the one-time crypto mogul, and after he was arrested last November, she chatted often and even met with him while he was under house arrest. From there, she became known for posting details of her conversations with Bankman-Fried and documents he shared with her, and went on to attend every day of his trial in person and do videos on them.
On this episode of Unchained, Fong shares why she thinks SBF opened up to her, whether she ever had a romantic relationship with him, her unpleasant encounter with Sam Bankman-Fried’s mother at the trial, why she doesn’t really consider herself a crypto influencer, and what her plans are now that the trial is over.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
what Tiffany did before getting into crypto
how Tiffany lost most of her life savings in the Celsius bankruptcy and how that jumpstarted her journey into the content creation space
how she got in touch with Sam Bankman-Fried and got him to speak with her after FTX’s collapse
the conversations Tiffany had with SBF during his house arrest
Tiffany's response to the rumors about a romantic relationship with SBF
how Tiffany reacted to the DOJ reaching out to her for information before the SBF trial
why she decided to go to the courtroom every day during the SBF trial
Tiffany’s unpleasant encounter with SBF's mom, Barbara Fried
how Tiffany feels about crypto, and why she doesn’t consider herself a "crypto influencer"
what Tiffany’s career plans are now that the SBF trial is over
Thank you to our sponsors!
Arbitrum Foundation
Popcorn Network
Phemex
Guest
Tiffany Fong, Crypto content creator
Links
Unchained:
RollingStone: The Crypto Whistleblower at the Center of the Sam Bankman-Fried Storm
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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest news. This week, the gang breaks down the record $4.3 billion settlement between Binance and the U.S. government — whether it was fair, the chances CEO Changpeng Zhao will face any jail time, whether it was ultimately a good thing for Binance and for the U.S., and what this changes for the industry going forward. They also delve into the SEC’s lawsuit against Kraken, and the drama around Sam Altman’s firing from Open AI and what it says about corporate governance and crypto companies.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.
Show highlights:
the details of the settlement between Binance and the Department of Justice
how a core part of Binance’s business model was to allow bad actors on its platform, according to Robert
why Binance had to settle with the U.S. government even though it's not an American company
why Tom believes that the settlement represents a "very bad lesson"
whether U.S. market makers should be liable in cases like these
how the crypto community has reacted to the settlement
what the settlement means for the future of the crypto industry
whether the new SEC lawsuit against Kraken is just a “copy-and-paste” of its suit against Coinbase
The drama around Sam Altman’s removal from his role as CEO of OpenAI
Why Robert thinks that the OpenAI board was “silly and dumb”
What the problems at OpenAI say about its innovative governance structure
Hosts
Haseeb Qureshi, managing partner at Dragonfly
Robert Leshner, founder of Compound
Tom Schmidt, general partner at Dragonfly
Tarun Chitra, managing partner at Robot Ventures
Disclosures
Links
Binance Settlement
Unchained:
Binance to Pay $4.3 Billion to Settle U.S. DOJ Criminal Probe; CEO Changpeng Zhao Pleads Guilty for Violating Bank Secrecy Act
Binance CEO CZ Released on $175 Million Bond
SEC Charges Against Kraken
Unchained: Crypto Exchange Kraken Accused by SEC of Violating Securities Law
OpenAI
The Verge: Sam Altman returns as CEO of OpenAI
Unchained: Worldcoin Falls and Rises After Sam Altman-OpenAI Saga
Haseeb’s tweet on accelerationism
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According to surveys of financial advisors, only 12% are currently recommending that clients invest in Bitcoin, while 47% of advisors personally own Bitcoin and a whopping 77% say they are waiting for a spot Bitcoin ETF to become available so they can offer it to their clients.
On this episode of Unchained, Ric Edelman, founder of the Digital Assets Council of Financial Professionals and author of “The Truth About Crypto,” explains how this should all lead to high demand once the first spot Bitcoin ETFs become available, although it will take some time for them to allocate. Edelman also discusses how FTX’s implosion impacted advisor perceptions of crypto, why investors have not been that excited by crypto futures ETFs, and which Bitcoin ETF issuers he believes are likely to be the big winners.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
how regulatory confusion keeps financial advisors away from recommending Bitcoin to their clients
how the collapse of FTX affected financial advisors’ interest in crypto, according to Ric
how the knowledge level of financial advisors about Bitcoin is "extraordinarily low"
why 77% of investment advisors are willing to buy a spot Bitcoin ETF
why there wasn't a huge interest from advisors after the launch of Bitcoin futures ETFs
the percentage of client portfolios that he expects they will allocate to BTC
why Ric thinks there won't be huge inflows immediately after the approval of spot BTC ETFs
how financial advisors will decide whose ETF to buy, among the 12 potential issuers
why he believes spot Ethereum ETFs have great growth potential
why he thinks tokenization might be the "next big thing" that will increase institutional activity
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Thank you to our sponsors!
LayerZero
Popcorn Network
Guest:
Ric Edelman, Founder of the Digital Assets Council of Financial Professionals
Previous appearance on Unchained: Financial Advisors Control $5 Trillion in Investor Wealth. Are They Buying Bitcoin?
Links
Previous coverage on spot Bitcoin ETFs:
How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection
Why a Spot Bitcoin ETF Will Probably Launch No Later Than January 10
Why It Looks Like BlackRock Could Win America’s First Spot Bitcoin ETF
The Chopping Block: Are We Back? The 'Low IQ' Response to the Potential Spot Bitcoin ETF
Unchained:
BlackRock Files for Spot Ethereum ETF
The Bitcoin ETF Is a Double-Edged Sword
Bitcoin ETFs Explained: What Are They & How Do They Work?
CoinDesk: BlackRock Bitcoin ETF in August Got on DTCC Site That Just Belatedly Moved Markets
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In this episode of Unchained, Peter Van Valkenburgh, director of research at Coin Center, explains why the IRS's proposed broker rule for tax reporting in crypto could harm the crypto industry as well as the security and privacy of users. He explains how Coin Center thinks the IRS should accomplish its aims, and why that would even work for collecting taxes on DeFi gains.
Additionally, Peter explains why he believes the Bank Secrecy Act might be unconstitutional and how that could potentially affect developers building in crypto.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
What the IRS's proposed broker rule entails for crypto tax reporting and why this could have a negative impact on the industry
What responsibilities brokers in the crypto space now face
Why the IRS didn’t use Congress's amended language from the infrastructure bill
Why Peter argues that the IRS’s new proposed broker rule on crypto is unconstitutional and the principles at stake
The alternative approaches Peter suggests the IRS could adopt for more effective and fair regulation
Why Peter has concerns for crypto developers about the potential application of the Bank Secrecy Act
What actions Coin Center is undertaking to advocate for changes in the Bank Secrecy Act to better align with crypto realities
Why Coin Center is appealing in its lawsuit against the Treasury Department over the OFAC sanctions on Tornado Cash
Thank you to our sponsors!
Arbitrum Foundation
Popcorn Network
Guest
Peter Van Valkenburgh, director of research at Coin Center
Previous appearances on Unchained:
Why the SEC Is Probing Yuga Labs and Coin Center Is Suing Treasury
How Coin Center Is Helping Define The 'Big Fuzzy Gray Area' Of Blockchain And Cryptocurrency Law
Why the SEC's Proposed Rules Affecting DeFi Could Violate the First Amendment
Links
IRS Crypto Regulation
Coin Center: Electronic Cash, Decentralized Exchange, and the Constitution
The Blockchain Association’s letter opposing tax regulations proposed by the IRS
CoinDesk: How the Crypto Industry Responded to the IRS Proposed Broker Rule
Patriot Act
California Bankers Assn. v. Shultz
Bank Secrecy Act
Coin Center:
Broad, Ambiguous, or Delegated: Constitutional Infirmities of the Bank Secrecy Act
Tornado Cash
Coin Center:
U.S. Treasury sanction of privacy tools places sweeping restrictions on all Americans
Coin Center is suing OFAC over its Tornado Cash sanction
Denial of Coin Center’s motion in its case against the US Treasury over OFAC sanctions
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The recent Wall Street Journal article that claimed Hamas raised $130 million via cryptocurrency has sparked considerable debate, especially after Sen. Elizabeth Warren used it as her sole source to ask for tighter regulations around crypto. However, the veracity of this claim has come under scrutiny.
Yaya Fanusie, Jessi Brooks, and Andrew Fierman delve into the veracity of reported figures, the methodology behind them, and the subsequent industry responses that sought to correct the public record. They examine the political implications of cryptocurrency, its use in funding organizations, and the nuanced role of stablecoins in this digital economy. Additionally, they address the broader challenges in regulating crypto to prevent illicit funding, emphasizing the need for factual accuracy and a comprehensive approach to understanding and tackling such complex issues.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
how the Wall Street Journal article claimed that Hamas and other militant groups in Palestine raised $130 million via crypto
why Yaya, who spent some time in his career doing research on terrorist financing, found those numbers odd
why Jessi believes that there's been a loss of focus on facts and accuracy
Andrew's explanation of the post by Chainalysis that corrected the record
why it's so difficult to make a confident assessment of how much money is being funneled to terrorist groups
whether crypto has become politicized
why is it so important to focus not only on the crypto fundraising but also the other avenues, according to Jessi
the role of USDT and other stablecoins in fundraising terrorist organizations
how North Korea is a much more sophisticated actor than Hamas in its know-how about crypto
how the government has tried to respond to the illicit usage of crypto, such as the OFAC sanctions on Tornado cash
the challenges to creating regulations to prevent the use of illicit activity in crypto
Thank you to our sponsors!
Crypto.com
LayerZero
Popcorn Network
Guests:
Yaya Fanusie, Director of anti-money laundering and cyber risk at the Crypto Council for Innovation
Previous appearance on Unchained: How Widespread Is Money Laundering in Crypto?
Hamas has been experimenting with crypto for years: Yaya Fanusie, appearance on FOX Business
Jessi Brooks, CCO and Legal Officer at Ribbit Capital
Previous appearance on Unchained: How This DOJ Strike Force Hunts Down Cryptocurrency Criminals
Andrew Fierman, Head of Sanctions Strategy at Chainalysis
Links
Fundraising report and corrections:
WSJ:
Hamas Militants Behind Israel Attack Raised Millions in Crypto
Cryptocurrency Feeds Hamas’s Terrorism
Questioning Two Senators on Crypto Terrorism
Washington Post:
U.S. to warn crypto firms against financing Hamas, terror groups
U.S. Cyber Command helps prosecutors seize stolen cryptocurrency traced to illicit N. Korea nuclear weapons program
FT: Israel orders freeze on crypto accounts in bid to block funding for Hamas
Fortune: Stricter verification laws in the U.S. won’t stop international terrorists from using crypto
DOJ: Global Disruption of Three Terror Finance Cyber-Enabled Campaigns
Elliptic:
Setting the record straight on crypto crowdfunding by Hamas
How Hamas has utilized crypto, and what may be coming
Chainalysis:
Cryptocurrency and Terrorism Financing: Correcting the Record
DOJ Takedowns Terrorism Financing with Blockchain Analysis
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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest news. This week, the gang welcomes Republican presidential candidate Vivek Ramaswamy, who discusses his mission to end the U.S. government’s regulatory overreach of the crypto industry, the parallels between crypto and the biotech industry where he came from, whether “code is law” is an appropriate framework for crypto regulation, how Bitcoin could be a check on the Fed, and how less regulation would actually lead to fewer, not more, instances of fraud like FTX.
Ramaswamy is promising to release a comprehensive crypto policy plan this week.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.
Show highlights:
what Vivek thinks about crypto and why he is interested in this topic as a presidential candidate
why he believes the SEC is engaging in “unconstitutional overreach” when it comes to crypto
what the similarities are between early-stage biotech and early-stage crypto investing
whether current regulatory requirements create a "false blanket of security"
how Vivek would act to make sure the SEC doesn't overreach
how the system should respond to less regulation in terms of fraud and innovation
how stablecoins can reinforce the value of the dollar and Bitcoin can help discipline the Fed, according to Vivek
whether Bitcoin is an asset that the Fed should buy for its balance sheet
why Vivek believes it was a mistake to abandon the gold standard in the 1970s
the gang's debrief of the conversation: what stood out, where they agree or disagree with Vivek
their reaction to the conviction of Sam Bankman-Fried
Hosts
Haseeb Qureshi, managing partner at Dragonfly
Robert Leshner, founder of Compound
Tom Schmidt, general partner at Dragonfly
Tarun Chitra, managing partner at Robot Ventures
Disclosures
Guest
Vivek Ramaswamy, American entrepreneur and U.S. presidential candidate
Links
Fox Business: Ramaswamy woos pro-crypto voters, says he’ll build new policy framework for digital assets
Axios: Ramaswamy goes after regulators at crypto event
CoinDesk: Vivek Ramaswamy Is Drafting a 'Crypto Policy Framework'
WSJ: Stablecoins Can Keep the Dollar the World’s Reserve Currency
Decrypt: What Stops the Fed From Buying Up Bitcoin?
Forbes: What Happened In 1971?
Unchained: SBF Trial, Day 18: Sam Bankman-Fried Found Guilty on All 7 Counts in Swift Verdict
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Last week, OpenSea, the former frontrunner in the NFT marketplace, confirmed the layoff of half its workforce as the NFT markets seemed to bottom out.
gmoney, NFT collector and founder of 9dcc, joins Unchained to provide insight into the once-dominant NFT marketplace’s fall from grace. He talks about the competitive dynamics that challenge the platform's market share and whether a token launch could help. In addition, gmoney delves into why the NFT market has been “abysmal,” what could potentially catalyze its revival, and how he thinks creator royalties will evolve.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
whether OpenSea 'rested on their laurels' after becoming the market leader
whether the fact that its competitor Blur launched a token was a reason for OpenSea's fall
whether OpenSea not immediately following other platforms such as Blur in making creator royalties optional led to some of its decline
how gmoney wants to incentivize people to pay creator royalties
why the NFT market has gone down and what gmoney's thesis for NFTs is
what catalysts could cause the next NFT bull run, according to gmoney
how NFTs make it possible for certain groups to access new forms of credit
whether Ethereum can be displaced from its leadership position in the NFT market
what gmoney thinks could revive OpenSea’s prospects
Whether Blur's model is to blame for the decline in the NFT market
how gmoney thinks Blur should act to retain its market dominance
Thank you to our sponsors!
Crypto.com
Arbitrum Foundation
Phemex
Popcorn Network
Guest
gmoney, NFT collector and founder of 9dcc
Links
Previous episodes of Unchained and The Chopping Block debating NFT Royalties:
The Chopping Block: Did Blur Cause a Decline in the NFT Market?
The Chopping Block: Two on Two Debate: NFT Royalty Throwdown!
Are NFT Royalties the Way? How to Build a Sustainable Creator Economy
Decrypt:
Did Blur Really Crash the NFT Market?
OpenSea’s move to make creator royalties optional for NFT trades
Blur Overtakes OpenSea as Ethereum NFT Trading Skyrockets
The Crypto Times: Blur Jumps Nearly 30% Within Days While OpenSea Layoffs
Cointelegraph: OpenSea lays off 50% of staff with severance in preparation for version 2.0 launch
CoinDesk: NFT Lending Platform Blend Sparks Concerns Over Ecosystem Liquidity
The Information: Coatue Cuts Value of OpenSea Stake by 90% as Fund’s Returns Sag
Axios: The fight over a shrinking NFT market as marketplaces foresee next big boom
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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest news. This week, they explore the enigmatic 'unhinged scale' metric, consider whether recent layoffs could have been anticipated, and examine the challenges facing the NFT market. They also provide a somewhat critical look at the events of the recent BAYC Apefest and share their takeaways on how Solana survived the Sam Bankman-Fried and FTX fiasco.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.
Show highlights:
What the unhinged scale metric is and why SBF ranks the highest in that metric
Whether the companies doing layoffs could have predicted the market moves in a better way
Whether people and the press are being too harsh on the companies reducing their workforce
How the NFT market is a much harder environment than everything else, given the extreme volatility
Whether the model used by Blur caused the value of NFTs to go down
What’s more important in the NFT market: the supply or the demand
The BAYC ‘Apefest’ that caused eye damage to some participants and whether someone sabotaged the meetup
Tarun’s takeaways from the recent Solana conference in Amsterdam
Whether the people who survived the Solana market crash are like ‘cockroaches after a explosion’
Why Haseeb believes that Solana represents the most incredible story in the history of Layer 1s
Whether crypto gaming studios should focus on building ‘dumber’ games rather than AAA ones
Why “nature is a Ponzi scheme,” according to Tarun
Hosts
Haseeb Qureshi, managing partner at Dragonfly
Robert Leshner, founder of Compound
Tom Schmidt, general partner at Dragonfly
Tarun Chitra, managing partner at Robot Ventures
Disclosures
Links
Previous episodes of Unchained and The Chopping Block debating NFT Royalties:
The Chopping Block: Two on Two Debate: NFT Royalty Throwdown!
Are NFT Royalties the Way? How to Build a Sustainable Creator Economy
Decrypt:
Ava Labs Confirms Layoffs, Affecting 12% of Avalanche Studio's Employees
Did Blur Really Crash the NFT Market?
Cryptotimes.io: Blur Jumps Nearly 30% Within Days While OpenSea Layoffs
Cointelegraph: OpenSea lays off 50% of staff with severance in preparation for version 2.0 launch
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In this episode of Unchained, Laura does a detailed unpacking of the historic Sam Bankman-Fried trial and verdict with defense lawyer Sam Enzer and former Southern District of New York prosecutor Rich Cooper. They discuss what a thorough job the government did in presenting its case, whether the government will pursue a second trial on campaign finance charges, why it takes so long for sentencing to occur, what the differences between this case and the Bernie Madoff case are, and what Bankman-Fried’s likely sentence will be.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
how the cross-examination of SBF showed to the jury that he was unreliable, according to Rich
why the charge conference with the jury is important to the prosecution for “protecting the record”
why the closing argument of the prosecutors was so effective
what “conscious avoidance” is and how the prosecutors tried to prove that SBF was guilty of that
why SBF’s tweet last November that "FTX is fine" was the hardest part of the trial for the defense, according to Enzer
why Enzer wasn’t surprised by how quickly the jury made its decision
what SBF’s strongest argument is for an appeal
why Enzer "hopes" that there won't be a second trial against SBF and whether he will plead guilty to the additional charges
why the sentencing occurs so many months after the verdict
how this case is similar, but also different, from the Bernie Madoff case
how many years SBF could spend in prison, according to Enzer and Cooper
when cooperating witnesses such as Caroline Ellison, Nishad Singh, and Gary Wang are likely to get sentenced
Thank you to our sponsors!
Crypto.com
LayerZero
Popcorn Network
Guest:
Sam Enzer, partner at Cahill Gordon & Reindel.
Previous appearances on Unchained:
Why SBF's Testimony So Far Has Likely Already Doomed Him
Another Bad Week for Sam Bankman-Fried in His Criminal Trial
Why These Lawyers Say It's Over for SBF-But His Only Hail Mary Is to Testify
SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case
SBF’s Lawyers Could Be Annoying the Judge. How Might That Impact the Trial?
Rich Cooper, Former SDNY prosecutor
Links
Previous coverage by Unchained on the trial of Sam Bankman-Fried:
How Heated Sidebars During the SBF Trial Could Impact the Jury’s Decision
SBF Trial, Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF’s Family
SBF Trial, Day 2: DOJ Says Sam Bankman-Fried ‘Lied’ While Defense Claims His Actions Were ‘Reasonable’
SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
SBF Trial, Day 4: SBF’s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda’s Special Privileges
Sam Bankman-Fried Trial: Here's Everything That Happened So Far
SBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?
Visit www.unchainedcrypto.com for more!
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Two Genesis creditors, BJ and Branden, who prefer to use pseudonyms for security reasons, spoke with Unchained about the alleged fraud by the crypto lender and its parent company, Digital Currency Group (DCG). The discussion is one of the first times Genesis creditors have spoken with a media organization about the situation.
BJ and Branden explain how they gave more loans to Genesis after it took a $1.1 billion hit from the liquidation of Three Arrows Capital and how they then came to be members of the ad hoc group, a collective of Genesis customers who came together to try and save the company from bankruptcy.
They talk about how they now want DCG to pay back the $1.1 billion it owes over a shorter timeframe and to pay back any Bitcoin in actual Bitcoin. The discussion with Unchained followed shortly after New York Attorney General Letitia James filed a lawsuit against Genesis, along with its parent company Digital Currency Group, and Gemini Trust.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
Show highlights:
what NYAG Letitia James alleged in the lawsuit against Gemini, DCG, and Genesis
how BJ and Branden became creditors of Genesis, including the role of the influence of MicroStrategy's Michael Saylor
how Genesis claimed it got into what it called a “liquidity mismatch”
how, after the Three Arrows Capital collapse, BJ and Branden were reassured that Genesis had "no issues" and "was back to business"
whether the trading and lending units of Genesis were all part of the same company and why that distinction is important
what the difference is between the ad hoc group and an unsecured creditors committee
what the creditors are proposing in order to get their assets back
why the creditors want to be paid in crypto, not in USD
whether the case will go to litigation and what Silbert can do to avoid it
Thank you to our sponsors!
Crypto.com
Arbitrum Foundation
Phemex
Popcorn Network
Guests:
Branden, Creditor of Genesis
BJ, Creditor of Genesis
Links
Previous coverage of Unchained on Genesis and DCG:
Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It?
Gemini vs. DCG Is Heating Up. Could Gemini Force Genesis Into Bankruptcy?
$630M Due Next Week: Is DCG at Default Risk?
NYAG Lawsuit
Unchained: NY Attorney General Sues Crypto Firms Gemini, Genesis, and DCG for Over $1 Billion Fraud
The Block: DCG says it was 'blind sided' by NYAG suit in third quarter shareholder letter
Genesis, Gemini, DCG disputes
Unchained:
Gemini Says DCG Missed $630 Million Payment Last Week
Cameron Winklevoss Threatens to Sue DCG and Barry Silbert Over Delays in Genesis Resolution
DCG Calls Gemini Lawsuit a ‘Publicity Stunt’ From Cameron Winklevoss
DCG Calls Gemini’s Complaint a PR Campaign in Motion to Dismiss Lawsuit
FTX and Genesis Reach $175 Million Settlement, Resolving Complex Dispute
DCG and Genesis Reach In-Principle Deal With Creditors
Gemini and Genesis Creditor Groups Object to In-Principle Deal to Resolve Bankruptcy
Genesis Winds Down its US Spot Crypto Trading Operation
Genesis Sues Parent Company DCG, Seeks Repayment of $600 Million
DCG Proposes Remuneration Plan That Could Enable Gemini Earn Users to Be Made Whole
Genesis Winds Down All Crypto Trading Services: Report
Gemini Pushes Back on DCG’s Remuneration Proposal, Calling it an ‘Attempt to Bait’ Earn Users
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The downfall of former FTX CEO Sam Bankman-Fried from king of the crypto world to crypto scammer is complete.
A Manhattan jury of nine women and three men took less than five hours Thursday afternoon, day 18 of the high-profile trial, to convict Bankman-Fried on seven counts of fraud and conspiracy for stealing billions of dollars of his customers’ assets.
“Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history, a multi-million scheme designed to make him the king of crypto,” said Damian Williams, U.S. attorney for the Southern District of New York in remarks following the verdict.
The guilty verdict came a year to the day after crypto publication CoinDesk published a story showing balance sheet irregularities at Bankman-Fried’s investment company, Alameda Research, that suggested the ties between Alameda and FTX were unusually close. Bankman-Fried now faces potentially decades in prison. Sentencing is scheduled for March 28.
After listening to Judge Lewis Kaplan read through 60 pages of instructions, jurors quickly concluded that Bankman-Fried was responsible for decisions that led to an $8 billion hole in its balance sheet, including the use of customer assets for political donations, investments and his own personal use. Prosecutors had reiterated this theme in a stinging, Thursday morning rebuttal.
And jurors rejected whole-hog Bankman-Fried’s defense team’s narrative that Bankman-Fried was being villainized for being a poor manager who didn’t create sufficient risk management systems. They also did not buy into Bankman-Fried’s claim that he was unaware of the severity of his company’s financial problems and that his inner circle, three of whom testified earlier in the trial as part of plea agreements, were to blame.
“We respect the jury’s decision,” said Bankman-Fried’s lead attorney, Mark Cohen. But we are very disappointed with the result. Mr. Bankman-Fried maintains his innocence and will continue to fight the charges against him.”
U.S. attorney Wiliams called Bankman-Fried’s crimes “ fraud” as “old as time,” and said his office had “no patience for it.”
He added: “This case moved at lightning speed, that was a choice, not a coincidence.”
Catch up on Unchained’s previous coverage:
SBF Trial, Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF’s Family
SBF Trial, Day 2: DOJ Says Sam Bankman-Fried ‘Lied’ While Defense Claims His Actions Were ‘Reasonable’
SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
SBF Trial, Day 4: SBF’s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda’s Special Privileges
SBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?
SBF Trial, Day 6: Caroline Ellison Recalls 'The Worst Week of My Life'
SBF Trial, Day 7: In SBF Trial, Did the Defense Lose Its Opportunity With the Star Witness?
SBF Trial, Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges
SBF Trial, Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big Spender
SBF Trial, Day 10: Defense Struggles to Discredit Nishad Singh's Testimony
SBF Trial, Day 11: How Alameda Got FTX Into a $9 Billion Hole
SBF Trial, Day 12: Former FTX General Counsel Speaks Out Against SBF
Did Sam Bankman-Fried Have Intent to Defraud FTX Investors?
Why These Lawyers Say It's Over for SBF-But His Only Hail Mary Is to Testify
Here’s How Sam Bankman-Fried’s High-Stakes Trial Could Play Out
SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case
The High-Stakes Trial of Sam Bankman-Fried Begins: What to Expect
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Prosecutors and defense attorneys in the trial of former FTX CEO Sam Bankman-Fried closed their arguments with similar stories to their opening statements more than three weeks ago: a tale of two Sams.
On Wednesday morning, day 17 of the trial, the government took jurors on a final grand tour of Bankman-Fried’s alleged lies, evasions and misdirections that they said aimed to hide the ugly truth of a gaping $8 billion hole in the crypto exchange’s balance sheet from investors and regulators, and that reflected his indifference to spending customer assets.
Assistant U.S. Attorney Nicholas Roos said that as the person overseeing FTX and the separate trading entity, Alameda Research, to which FTX funneled customer deposits, Bankman-Fried was the only person who could have been responsible for decisions that led to the deficit – criminally so.
“He told a story and he lied to you,” said Roos, who punctuated his more than two-hour presentation with metadata readings and time tables that seemed to devastatingly illustrate SBF’s ongoing awareness of his company’s financial debacle.
But in the afternoon, Bankman-Fried’s defense team portrayed him in softer tones, as a math nerd with no ill-intent and guilty only of bad management, particularly his failure to install adequate risk management protections. Attorney Mark Cohen said that the government had failed to prove its case as it sought to create a Hollywood villain responsible for the disappearance of the funds, cartooning his dress and personal habits to make their case. At one point, he seemed to appeal to jurors’ emotions, reminding them that Bankman-Fried had lived a big life and now faces prison.
Bankman-Fried faces potentially decades in prison on a total of seven counts of wire fraud and conspiracy. The prosecution will have an opportunity for rebuttal on Thursday, and jurors could begin deliberating his fate before the end of the day..
Often raising his voice for dramatic effect, Roos highlighted earlier testimony from Bankman-Fried’s inner circle and Google metadata indicating his awareness of the balance sheet woes to show his involvement in the company’s oversight. Bankman-Fried testified on Monday that he was unaware of the problems, suggesting others were to blame.
And Roos used the time tables to demonstrate separately that Bankman-Fried had lied to Congress about protecting customer assets even as he paid off loans using them, and that he had spent heavily on investments, political contributions and personal items, even after he knew of the massive balance sheet hole.
“This was a pyramid of deceit built by the defendant on a foundation of lies and false promises, all to get money, and eventually it collapsed, leaving countless victims in its wake,” Roos thundered.
Visit UnchainedCrypto.com for prior episodes
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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Robert Leshner chop it up about the latest news. This week, the gang sits down with guest Nic Carter of Castle Island Ventures, whose tweet thread pushed the Wall Street Journal to correct its story that Hamas had raised tens of millions in crypto. Carter discusses the challenges in tracking how much crypto Hamas has actually received, the declining prospects for Sam Bankman-Fried’s acquittal, and ongoing dramas surrounding staking protocol Lido and decentralized exchange dYdX.
Show highlights:
Why the cross-examination has not gone well for Sam Bankman-Fried
how the Wall Street Journal misinterpreted data and may have overstated the amount of crypto donations flowing to Hamas for terrorist activities
why it’s difficult to pinpoint how much funding Hamas has raised in crypto donations
how extensive crypto funding for terrorists is believable to many outside observers of the industry, even recently some of its supporters in Congress, but does not reflect reality
Why Hamas has decided on its own to stop trying to raise funds in crypto
how Lido is upset at the way Layer Zero has pre-marketed its bridge
why dYdX’s pivot to decentralization with fees going into its token is a positive development but does not give the protocol the moral high ground to attack erstwhile competitors such as UniSwap.
Hosts
Haseeb Qureshi, managing partner at Dragonfly
Robert Leshner, founder of Compound
Tom Schmidt, general partner at Dragonfly
Guest
Nic Carter, general partner at Castle Island Ventures
Disclosures
Links
Previous coverage by Unchained on the trial of Sam Bankman-Fried:
How Heated Sidebars During the SBF Trial Could Impact the Jury’s Decision
Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF’s Family
Day 2: DOJ Says Sam Bankman-Fried ‘Lied’ While Defense Claims His Actions Were ‘Reasonable’
Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
Day 4: SBF’s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda’s Special Privileges
Sam Bankman-Fried Trial: Here's Everything That Happened So Far
Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?
Day 6: Caroline Ellison Recalls 'The Worst Week of My Life'
Day 7: In SBF Trial, Did the Defense Lose Its Opportunity With the Star Witness?
Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges
Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big Spender
Day 10: Defense Struggles to Discredit Nishad Singh's Testimony
Day 11: How Alameda Got FTX Into a $9 Billion Hole
Day 12: Former FTX General Counsel Speaks Out Against SBF
Day 13: Before Judge, Former FTX CEO Sam Bankman-Fried Gives Few Straight Answers
Day 14: Sam Bankman-Fried Casts Blame on Others for Key Decisions at FTX
Day 15: Prosecutors Hammer Bankman-Fried’s Contradictions With Reams of Evidence
Day 16: In Final Cross Examination, SBF Gets Caught Again by His Own Words
Hamas
Unchained: Binance Helps Israel Police Freeze Hamas Crypto Accounts: Report
Unchained: Bitcoin Slips to $27.4K Amid Escalating Israel-Hamas War but Long-Range Impact Remains Uncertain
Nic Carter Twitter thread: Can crypto-twitter OSINT outperform the WSJ’s chain analysis?
Nic Carter Tweet: Liz Warren wyd?
The Wall Street Journal: The Wall Street Journal and Liz Warren double down on the Hamas crypto canard
Washington Post: U.S. to warn crypto firms against financing Hamas, terror groups
CoinDesk: The Hamas Funding Story Is Why Crypto Is Sick of the Mainstream Media
Layer Zero/Lido
LayerZero’s wstETH bridge deployment draws Lido DAO ire
LayerZero introduces omnichain token to move Lido's wstETH across Avalanche, BNB Chain and Scroll
dYdX
Examining dYdX’s Path to Profitable DeFi
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For a second, consecutive day, prosecutors pounded away at Sam Bankman-Fried’s credibility, asking the former FTX CEO to explain his obliviousness about how Alameda had spent $8 billion of FTX customer funds.
Prosecutors and the defense both rested their cases on Day 16 of the high-profile trial. Both sides will make their closing arguments on Wednesday and jurors could begin deliberating the following day.
While Bankman-Fried claimed that he thought “it was permissible” for Alameda to use FTX customers’ fiat deposits, he also admitted that he didn’t tell his employees not to spend that money or create measures to segregate FTX customer funds from Alameda’s.
Prosecutor Danielle Sassoon also grilled him on why he didn’t look into who had spent the FTX customer money. “So it’s your testimony that while you were CEO of Alameda some unknown people spent $8 billion without your knowledge?” prosecutor Danielle Sassoon asked Bankman-Fried, who replied that he didn’t agree that was his testimony.
Bankman-Fried later said that he had asked former Alameda CEO Caroline Ellison to explain the $8 billion in spending but did not fire anyone. Under subsequent defense questioning, Bankman-Fried said that he had wanted to look ahead.
Earlier in the day, Sassoon had honed in on Bankman-Fried’s allegedly close relationship with government officials in the Bahamas, and presented an email in which he said that the company had “segregated funds for all Bahamian customers on FTX and that it would be “more than happy to open up withdrawals for all Bahamian customers on FTX.” The communication came Nov. 9, 2022, a few days after FTX had halted customer withdrawals as awareness of its financial problems grew.
Catch up on Unchained’s previous coverage:
SBF Trial, Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF’s Family
SBF Trial, Day 2: DOJ Says Sam Bankman-Fried ‘Lied’ While Defense Claims His Actions Were ‘Reasonable’
SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
SBF Trial, Day 4: SBF’s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda’s Special Privileges
SBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?
SBF Trial, Day 6: Caroline Ellison Recalls 'The Worst Week of My Life'
SBF Trial, Day 7: In SBF Trial, Did the Defense Lose Its Opportunity With the Star Witness?
SBF Trial, Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges
SBF Trial, Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big Spender
SBF Trial, Day 10: Defense Struggles to Discredit Nishad Singh's Testimony
SBF Trial, Day 11: How Alameda Got FTX Into a $9 Billion Hole
SBF Trial, Day 12: Former FTX General Counsel Speaks Out Against SBF
SBF Trial, Day 14: Sam Bankman-Fried Casts Blame on Others for Key Decisions at FTX
SBF Trial, Day 15: Prosecutors Hammer Bankman-Fried’s Contradictions With Reams of Evidence
Did Sam Bankman-Fried Have Intent to Defraud FTX Investors?
Why These Lawyers Say It's Over for SBF-But His Only Hail Mary Is to Testify
Here’s How Sam Bankman-Fried’s High-Stakes Trial Could Play Out
SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case
The High-Stakes Trial of Sam Bankman-Fried Begins: What to Expect
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In a trial during which he has suffered many low points, former FTX CEO Sam Bankman-Fried may have reached a nadir on day 15 as prosecutor Danielle Sassoon used his own words to show stark contradictions from his earlier testimony and a seemingly callous disregard for customer assets.
The tenacious, methodical Sassoon punctuated her more than four hours of interrogation on Monday afternoon with devastating audio and visual evidence of Bankman-Fried, including memos to himself, internal FTX and Alameda documents, and testimony to Congress that countered statements he’d made under his defense team team’s kinder questioning. In one instance, Sassoon showed a Signal chat in which Bankman-Fried expressed his interest in purchasing MAPs token, a direct refutation of his testifying that he “was not involved at all in any way” in trading.
In another instance, she illustrated Bankman-Fried’s alleged lack of regard for his Twitter followers, showing a screenshot of a Twitter DM with Kelsy Piper in which he admits to being insincere about his support for regulation that protects customers, telling Piper at one point, “just PR, fuck regulators.”
Bankman-Fried claimed not to remember a spreadsheet with seven, different balance sheets created by then Alameda Research CEO Caroline Ellison to make the company’s balance sheet look better than it was, a key piece of evidence that Ellison addressed in her testimony. Sassoon presented Google metadata showing Bankman-Fried had read the document.
Dressed in a light gray suit with a purple tie, Bankman-Fried claimed repeatedly not to remember other events or his responses in conversations, and he answered other questions with curt yeses and nos, unlike the windy, often convoluted responses that he provided to his defense team earlier in the day and on Monday. And as Sassoon continued to catch him in contradictions, he seemed to grow irritable and occasionally rocked back and forth in his chair.
Prosecutors will continue their cross-examination on Tuesday followed by redirect for one or two hours before the defense closes its case. The prosecution will then call two rebuttal witnesses.
Catch up on Unchained’s previous coverage:
SBF Trial, Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF’s Family
SBF Trial, Day 2: DOJ Says Sam Bankman-Fried ‘Lied’ While Defense Claims His Actions Were ‘Reasonable’
SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One Fact
SBF Trial, Day 4: SBF’s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda’s Special Privileges
SBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?
SBF Trial, Day 6: Caroline Ellison Recalls 'The Worst Week of My Life'
SBF Trial, Day 7: In SBF Trial, Did the Defense Lose Its Opportunity With the Star Witness?
SBF Trial, Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges
SBF Trial, Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big Spender
SBF Trial, Day 10: Defense Struggles to Discredit Nishad Singh's Testimony
SBF Trial, Day 11: How Alameda Got FTX Into a $9 Billion Hole
SBF Trial, Day 12: Former FTX General Counsel Speaks Out Against SBF
SBF Trial, Day 13: Before Judge, Former FTX CEO Sam Bankman-Fried Gives Few Straight Answers
SBF Trial, Day 14: Sam Bankman-Fried Casts Blame on Others for Key Decisions at FTX
Did Sam Bankman-Fried Have Intent to Defraud FTX Investors?
Why These Lawyers Say It's Over for SBF-But His Only Hail Mary Is to Testify
Here’s How Sam Bankman-Fried’s High-Stakes Trial Could Play Out
SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case
The High-Stakes Trial of Sam Bankman-Fried Begins: What to Expect
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Sam Enzer, a partner at the law firm Cahill Gordon & Reindel, told Laura that former FTX CEO Sam Bankman-Fried did about as well as he could in his testimony Friday but that he was unlikely “to withstand the scrutiny” of what prosecutors have already said will be a robust cross-examination when he takes the stand Monday. Enzer noted that Bankman-Fried’s attempts to explain why he thought his trading shop, Alameda Research, could borrow billions in dollars of FTX customer assets “defies common sense,” and that the company’s own terms of agreement or any other communications offered no justification for this belief. A Thursday hearing without the jury present, in which the defense gave a preview of some arguments it wanted to make, ended up giving the government answers from SBF that it can now use against him. Enzer also said that Bankman-Fried’s contention that his biggest mistake – a failure to implement proper risk management – did not constitute criminal fraud, did not address the core of the government’s case; namely, that he lied about how FTX was handling customer deposits.Show highlights:why Enzer thinks Sam Bankman-Fried’s testimony is unlikely to sway jury sentiment or withstand cross-examinationwhy the evidentiary hearing in which SBF testified without a jury may hurt his causethe purpose of the evidentiary hearinghow Judge Lewis Kaplan hinted at what he thought about SBF’s testimonyhow Bankman-Fried is likely to fare against prosecutor Danielle Sassoon in what she has promised will be a robust cross-examinationhow the defense tried to recast SBF’s image by humanizing himwhy the defense now has the strongest grounds for an appeal than it previously did what the jury is likely to make of SBF’s contention that he was in the dark about core allegations why the prosecution said it will call rebuttal witnesseswhat a charge conference is and why that will take place after SBF testifiesThank you to our sponsors!Crypto.comArbitrum FoundationLayerZeroPopcorn NetworkGuest:Sam Enzer, partner at Cahill Gordon & ReindelLinksPrevious coverage by Unchained on the trial of Sam Bankman-Fried:How Heated Sidebars During the SBF Trial Could Impact the Jury’s DecisionSBF Trial, Day 1: Possible Witnesses Include FTX Insiders, Big Names in Crypto, and SBF’s FamilySBF Trial, Day 2: DOJ Says Sam Bankman-Fried ‘Lied’ While Defense Claims His Actions Were ‘Reasonable’SBF Trial, Day 3: Why a True Believer in FTX Flipped Once He Learned One FactSBF Trial, Day 4: SBF’s Lawyers Annoy Judge Kaplan, While Wang Reveals Alameda’s Special PrivilegesSam Bankman-Fried Trial: Here's Everything That Happened So FarSBF Trial, Day 5: SBF's Defense Finally Found Its Legs, But Can It Counter Caroline Ellison?SBF Trial, Day 6: Caroline Ellison Recalls 'The Worst Week of My Life'SBF Trial, Day 7: In SBF Trial, Did the Defense Lose Its Opportunity With the Star Witness?SBF Trial, Day 8: Former BlockFi CEO Adds Credibility to Fraud Charges SBF Trial, Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big SpenderSBF Trial, Day 10: Defense Struggles to Discredit Nishad Singh's TestimonySBF Trial, Day 11: How Alameda Got FTX Into a $9 Billion HoleSBF Trial, Day 12: Former FTX General Counsel Speaks Out Against SBFSBF Trial, Day 13: Before Judge, Former FTX CEO Sam Bankman-Fried Gives Few Straight AnswersSBF Trial, Day 14: Sam Bankman-Fried Casts Blame on Others for Key Decisions at FTXDid Sam Bankman-Fried Have Intent to Defraud FTX Investors?Good Morning America: FTX's Sam Bankman-Fried on crypto giant's collapse: 'A lot of people got hurt. And that's on me'Learn more about your ad choices. Visit megaphone.fm/adchoices
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