I Get it I Get it I Get it I get it. The FTX story is the story that keeps on giving and every single day seems to top the previous day of insanity. And I'm here to happily report that today did not disappoint because we have some bombshell updates of the first day of bankruptcy hearing. if I didn't see this if I didn't listen to it if I wasn't studying this I truly wouldn't believe all the craziness that is going on. Let me explain exactly what I'm talking about. FTX Lawyer calls this case a different sort of animal. in first bankruptcy hearing, what we are dealing with is a different sort of animal. Unfortunately, the FTX debtors were not particularly well run and that is an understatement regarding Ftx's founder. this was an organization that was effectively run by a person personal fiefdom of Sam Bankman freed now just to offer I I Guess a little bit of more framework of what's going on on in this particular bankruptcy court case. I Thought this was a very good post by CNBC Meantime FDX Executives Heading to a Delaware courtroom later this morning for their first appearance before a bankruptcy judge. A lot of creditors and customers there hoping that the hearing will try to shed some light on just how this bankruptcy is planning to an exchange trying to deal with the debts and customer funds and whether that money has gone to money Heaven Eamon Javers joins us now. Heyman Andrew That's really the question we're here in Wilmington Delaware This morning where we are expecting that the court will begin a bankruptcy proceeding here. that will begin to shed some light on those big questions around this enormous mystery of FTX what happened here so far. We don't know so much about this case. We don't know really how many creditors there are here. We don't know ultimately how much money FTX is going to. Oh, we hope to find some of those answers later today. Here's what we do know though: this bankruptcy hearing is the first in this process. It begins this morning at 11 A.M It's going to be held before Judge John T Dorsey Now, Judge Dorsey has interestingly already provide presided over a crypto bankruptcy case, so he has some experience in this area, which is rare. We haven't seen that many of these. and so the big question is: what could we learn here? some more detail into Ftx's finances? How much FTX owes all of those creditors? Maybe even how many creditors there are here, and then a potential decision regarding the venue. Where is this bankruptcy going to play out? It's possible that it could be here in Wilmington possible. Maybe in New York Obviously, there's some jurisdictional issues involving the Bahamas in play here, so all of this will begin to shed some light. What we expect from the agenda that they've released so far for the hearing today Andrew is that we're going to get a lot of the basic blocking and tackling of an enormous bankruptcy. How do they pay their employees? How do they pay their vendors? How do they keep the doors open and continue to operate the business while they're in bankruptcy? A lot of that is going to get sorted through today, but we're going to be looking through those filings and listening to what the lawyers say at 11 o'clock today to see if we get any more insight into just how much money is missing here and how much they've already been able to lay their hands on. Andrew So as you can imagine, the T-ball was set up for Pure Insanity. and man was it an absolute Grand Slam From day one, FTX Bankruptcy hearing. here's the main takeaways of Just Day One: Company advisors are in constant communication with the Justice Department and the Southern District of New York's cyber Crime unit and which has opened a criminal investigation related to FDX Now I Know many of you are probably applauding aloud right now because you're like, finally, a criminal investigation for most likely what's one going to be one of the biggest fraud cases in the world of Finance Ever Like non-stop while and then this is where things just like it's just ridiculous. There's there's no, we're like the thesaurus is gonna have to add a couple more pages after this because I feel like myself media content creators were running out of the words of just crazy, ridiculous fraudulent Bonkers like we need a bigger, better word. A substantial amount of FTX assets are stolen or missing. We've covered this and it is insane. FTX Attorney says substantial amount of assets are either stolen or missing. Now you might be thinking, well, to what degree the number is growing, but as of now, it's in the realm of 400 to 450 million dollars and a lot of it went missing on the day of bankruptcy. They were hacked and I don't know if I still fully buy that I Feel like it's someone who had to have quite a bit of inside knowledge, but obviously that's all just like a thesis. Maybe it's a little bit too tinfoil hat for your liking, but we're talking about almost half a billion dollars. That right when it was all going down, a hacker just so timely stepped into the situation and everyone's actively watching the movie. The Money Move on. The Ledger And it's just insane. Like we're all tracking it. but what can you really do that's one of I Guess the aspects, The technical aspects of decentralized money. The U.S House and Senate have requested that the FTX CEO John J Ray III that sounds like a heavy hitter who comes in and like cleans up big Financial issues John J Ray III to testify at some point in December It's also expected that the former CEO Sam Bateman Freed will also be testifying in front of both committees. in December identifiable information of Fdx's top 50 creditors is being kept secret for now so this was a big question. mark of the day is those creditors? We looked at them like 226 million, the top 13 all had like rate of like north of a hundred million like each. Um, what's going on or is there information going to be publicly released? Well we got the answer as of now and it even says for now is going to be kept a secret but a hearing to reconsider. this is set for December 16th and just you know in general of where this bankruptcy court hearing is going to go. FTX will be back in court for a more comprehensive second Hearing In January Obviously at the turn of the year would I really want to get into is the amount of stolen or missing funds, some of the funds that have been found or retrieved in just like the chaotic, non-existent accounting and also Insanity that we're sealing with some of their purchases and particularly in the world of real estate FTX estimate of its cash Holdings More than doubles to 1.24 billion as bankruptcy hearing sets to begin, so that's good. Basically they were looking at all their paperwork and stuff and out of nowhere found about another 500 to 600 million uh dollars that on the book. So hey, a positivity right there FTX Expects millions of creditors but says their identities are valuable assets and they should be kept secret for now. So that was a little bit of the legal win at least for the top 50 creditors who right now or they are going to stay Anonymous But that might be changing as early as December 16th. We have to figure out what lawyer is going to win or not going to win. And then that brings us to the ridiculous part of today: FTX Bought nearly 100 million of property in the Bahamas over the past two years and if you look at for whatever amount of time like longer than two years, the estimate is around 200 to 300 million. And obviously we're talking about luxury beachfront homes and even more. But the insane part, The bombshell part is exactly this exclusive bankman freeze FTX Parents Bahamas Property worth 121 million dollars This was a post from Wall Street Silver Same big man freed his parents and Senior Executives of the failed cryptocurrency exchange bought at least 19 properties worth 121 million in the Bahamas over the past two years. I wonder if his parents asked any questions why Sam was parking realist state in their names? Now if you ask me, they knew exactly what they were doing. his parents are law professors at Stanford They 100 percent not only knew what they were doing, but I don't think they were just buying this with their own money. I mean I'm sure they got paid a lot for that position, but no, this is really starting to reek of some crazy stuff. especially when you look at the connection of his parents and the packs and the Congressional and political donations. It's wild. Absolutely wild now. right before we started filming this a hot off the press drop, Bakeman Freed apologizes to FTX employees Details: amount of: Leverage in internal letter this literally just came out: FTX Founder and former CEO Sam Bateman Freed froze up in the face of pressure as his company collapse Bakeman Freeze said he felt deeply sorry about what happened. So I mean yeah, obviously just saying I'm sorry he fixes the entire multi-billion dollar mistake and what that he meant for the company's employees. I didn't mean for any of this to happen and I would give anything to be able to go back and do things over again. You were my family I've lost that and our old home is an empty Warehouse of monitors. When I turn around, there's no one left to talk to. I Have to say that's exactly what happens when you commit. Most likely what's going to be going down as one of the largest cases of financial fraud ever known to mankind. Many people aren't going to just accept your oh I'm sorry you stole clients funds, sent them to the training arm of your business to chase some bad bets, and got yourself into a deeper hole. And apparently from the most recent filings, we kind of knew that you knew what was going on because you were parking multi-million dollar pieces of real estate out of the US in your parents names. This is absolutely ridiculous and maybe I'm a little bit too callous, maybe I'm a little bit too pessimistic, but I don't think I'm sorry cuts it and I still don't think that he's sorry if you look at his Twitter he's acting like a sociopath. He doesn't seem to be acting as if he knows he did anything wrong. It truly blows my mind and unfortunately, it's putting a big stain on the world of crypto in general. Bitcoin hits a two-year low as 1.4 trillion. that's with the T wiped off crypto Market this year after the FTX collapse. Now just to be a little, Fair here, FTX made it worse, but it was already selling off from January until now just because a lot of high growth Tech plays which is highly correlated with crypto was taking a hit. But obviously it did make it worse. I Just want to be clear about that. and then this brings me to the point where I have a very serious Earnest question for you: Do you think Crypto's done.