Emma is joined by writer Jacob Silverman to discuss the recent developments surrounding the crypto exchange FTX and its founder, Sam Bankman-Fried. Jacob Silverman and Emma then dive into the rapid rise and fall of Sam Bankman-Fried, founder of a massive crypto empire in the FTX exchange and Alameda Research firm, diving into how his Ponzi scheme turned him into a billionaire on paper, while myriad liberal institutions offered him legitimacy, allowing him to effectively run wild, investing billions in others’ money completely unregulated. Wrapping up that story, Jacob and Emma discuss the echo of the 2008 financial crash that can be seen in the recent Crypto crashes, and the greater implications of SBF effectively disappearing billions of dollars from investors.

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    Friend of the show Jacob Silverman author of the upcoming book Easy Money cryptocurrency Casino capitalism and the Golden Age of fraud. Jacob comes on to rip on these crypto grifters on occasion and more. Jacob thanks for being here. Oh, it’s a pleasure. Thank you. So this has been an absolute Saga the collapse of FTX. You know Miami Heat recently sold the naming rights to their the their Arena. They’re ripping off the letters because they’re unable to pay for their sponsorship. And according to what I’ve read it seems like Sam bank man freed the head of this cryptocurrency exchange it has lost billions of dollars in a matter of days. And it is in Ruins financially. Although when you become rich even if you go bankrupt they always end up finding a way to get rich again or stay rich. But I guess let’s just start at the beginning of this Saga. Who is this guy Sam bank man fried. And how did he end FTX’s jump on the scene? sure well Sam bank man fried or SPF as you sometimes hear him called he started as a quantitative trainer a Quant at Jane Street. he went to MIT he is the son of a couple Stanford law professors. so he did pretty well in his early 20s Trader at James Street. then he went on from there to eventually found this big crypto Empire. that became FTX and Alameda were the two main companies. the first sort of origin story that you hear at least is that Sam found an Arbitrage opportunity where basically he was buying crypto cheaper on American exchanges and selling it on Asian exchanges. it was called the kimchi discount. and some people even dispute that story but allegedly that’s how he made some Millions to start. and then you know that matured into a full-fledged crypto hedge fund called Alameda. and then FTX which was an exchange. just like coinbase or binance or some of these other exchanges.

    36 Comments

    1. You can call AMA1000X bots but that does not change the fact that the shill is absolutely deserved. Out of all launches we had, talk about ETH, talk about XRP, talk about all these new chains but AMA1000X breaks everything

    2. I've had the feeling BTC would be going to 3k as well. Clearing out all my Alts going into BTC and AMA1000X only, maybe a little BNB.

    3. SBF is still a majority shareholder of Robin Hood whose shares are doing really well. I'm sure he will manage to bounce back making a tidy profit for himself, all the while anyone who invested in FTX will still be left with billions in losses.

    4. Call E*trade on the phone and you speak to a person, call Schwab and you speak to a person, call Coinbase and …. ha ha ha . Coinbase was hosting their help desk on reddit and it was crawling with scammers posing as Coinbase employees. Good luck with that. I took my money out of Coinbase so fast.

    5. I never understood why so many people fell for the crypto scam… I mean, decentralized digital currency, but it still invariably runs on human greed; crypto currency are just a facilitator for fraud, the same way micro-transactional video games are, both are digital form casinos of the 21st century. The late 2010s and early 2020s are the wild west of digital casinos. When you truly think about it, it is mind blowing that this is even legal.

    6. It sure is weird that almost every comment is pushing AMA1000X, some of the comments are exactly the same, one above the other just from "different" users. Some making like it was mentioned favourably in the video, where it wasn't mentioned even once, let alone mentioned favourably. Pushing the scam overly hard aren't you folks.

    7. So you’re not going to talk about the connections between them and MIT/ Gensler/ Warren/ Clintons/ Ukraine rumors? Claim equivalency in political donations? His actual lack of history and experience in crypto? The missing funds? His parents, the girlfriend/ Alameda head’s father??!!

    8. I can't believe Sam would do this. I thought he was a pretty honest guy, at least from watching him on The Majority Report. Is he gonna still host this show from jail??

    9. Divest from all billionaire backed scams! Like Amazon, Twitter…

      Not only matter of regulation or "bad investments" ignoring the actual fraud that continues w Wall St derivatives and mortgages and any consumer debt. The focus on crypto while ignoring Wall St is falling fir same scam narrative.

    10. Damn the crypto scam bots are out in full force in the comments section. Any & all videos that ever dare mention the C word and bam here comes the swarm. You can tell it's a scam by how they advertise & operate.

    11. I'd like to know why the news, celebrity and financial media is not more skeptical of these tech geniuses and their obviously staged managed personas from the beginning. Holmes, SBF, Wirecard, Nikola – now Musk – the immediate media response always seems to positive when these people shoot out nowhere and promise all sorts of impossible things with nothing to back up their claims.

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