Unless you've been living under a rock, you know that something a little bit crazy, a little bit funky, a little bit out of the ordinary is currently going on in the world of crypto. Maybe you don't know the exact details, but you know that there's some sort of negative meltdown going on and you probably know that it's associated with FTX. I've personally been covering the story literally every single day and every single day it seems to get a little bit more. Bonkers So what I want to do in this video is give you the most recent update the developments as we're heading into the Big Turkey Day. But I also want to top on one very important point: did the U.S Regulators Congress People did people within power in the U.S know that this whole situation was going to go down in a very, very bad way because we just got some information from the powers to be particularly in Manhattan that they allegedly knew something was up. Here's exactly what you need to know: Bitcoin drops to a one-week low etherslide seven percent as FTX collapse ripples through the crypto Market Unfortunately, this is the story that just keeps on giving and it's the exact same thing with the crypto contagion that keeps on spreading just for a little bit of framework around this conversation. as I'm filming this. Bitcoin just broke through a very important support in the mid fifteen thousands and Ethereum is currently trading just above 1 000, specifically 1100. But as you can see, it's also at a very important support level. The Bears are showing up and they were showing up with some serious aggression collapse. Crypto Exchange FTX owes top 50 creditors over 3 billion According to some new filings. Yes, recently there were some new I guess court filings and the number one creditor. they are now down 226 million. The top 10 to 13 are all right in the range of 100 million People got very seriously hurt by this whole thing and as we have seen particularly on Twitter, it seems as if Sam Bakeman Freed the disgraced ex-ceo doesn't seem to care. He seems as if he thinks he did nothing wrong. even though three billion that is billion with a B is just Thanos snapped Into The Ether I mean absolutely ridiculous I mean things are so bad that it's to the point of Joe Biden President is no longer following Sam Begman freed and this is going to be import important because it's going to tie to some of the other parts of this particular video. basically because we know Sam Bankman freed the company FTX but also SPF himself on an individual and a corporate level were both large large political donors mainly to the Democratic party, but just to be fair here to give you all the information they did donate to both. we're talking about 38 39 million dollars in the midterm elections and also there was clear public commentary that they were going to donate up to a billion dollars in the 2024 presidential. Run Please keep this all in mind as we get to the end of the video. So over the weekend this was a big deal. Grayscale won't share proof of reserves citing security concerns. You might have heard of Grayscale before. maybe you heard of G BTC So like BTC Bitcoin but with a G in front of it. What you need to know, particularly here is Grayscale was the first company that set up trust. It's like a fund where you would invest in the trust and then the trust would go out of their way to buy Bitcoin for you. So it wasn't direct ownership, but it was kind of the Prelude to hopefully creating a Bitcoin ETF Uh, not the exact same thing. it was a trust, not an exchange traded fund but very similar. I Just wanted that out there because a lot of these big players had Gbtc and people were kind of concerned about them like well, hang on, are we safe And then all of a sudden Grayscale was like no, no, we are not going to give the proof of reserves as in people Then all of a sudden saying whoa, whoa whoa whoa, were you not buying Bitcoin with our money? Is this another like crazy thing going on? Grayscale cites security concerns for withholding on-chain proof of Reserve So this story started to develop and if you looked at what was going on with Gbtc, it was just going down and it was going down very, very rapidly because it was just another situation in crypto. They're like wow, the contagion spread and it's just taken down another large player. But then almost out of nowhere Early this morning, Coinbase had a post that said I know this is a little small, so I'll read it to you very quickly. The digital assets underlying each grayscale product have their own on-chain addresses, as we use client by client custody segregation. The digital assets underlying each grayscale product always belong to the applicable grayscale product. So they're saying Coinbase came out almost in defensive grayscale and said, no, no, no, we're good. They must truly not be showing you proof of reserves because they're worried about security. But other than that, like Coinbus was saying hey, they are good to go. So right now that's very much like a shrug of a situation. People are kind of wondering who has the money? who doesn't have the money? A lot of confusion there, but it's leading to some other big players who allegedly had a lot of Gbtc now. Crazy things are going on. So just last week Genesis which you've probably heard me talk about because they're related to Gemini Gemini had an earned program that was being run by Genesis and Genesis also was on the hook with FTX for about 170 175 million dollars. Well, last week on November 8th, Genesis said. with regard to today's market events, we have managed our lending book and have no material net credit exposure. In addition, Genesis has no exposure to any tokens issued by centralized exchanges. We continue to meet the needs of our clients around the world across all products. So that was just on November 8th and then boom were hit with this Today Crypto brokerage. Genesis Warns of bankruptcy without funding. This happened within about the past, well outward. Now, if you're watching this live with Me and then this is just getting so wild, just in, we have no plans to file for bankruptcy imminently. I Mean you could fairly be thinking right now watching this, what in the world's going on At first they say they're fine, then they say that they might have to file for bankruptcy. in between that, they're like, okay, we have to raise a billion and then honestly, in between all these stories, they're like, no, we don't need a billion, we need 500 million and then they say yeah, we're going to probably go to the bankruptcy and then they're like now we don't have any plans to file for bankruptcy imminently. Honestly, it's a fair question of are they just saying oh no, no, we don't mean tonight, we just mean tomorrow I Mean this is so so wild. So obviously many players have fallen in this whole thing and Genesis is one that appears to be on the current like chopping block. but I don't know there might be a speed run from Silvergate. From those of you who don't know about Silvergate, there's a lot of crypto firms and in the US there's pretty much just two main crypto. Banks You have Silvergate and you have signature. With respect to Silvergate, you have the Silvergate Exchange Network S-e-n which basically just allows all these crypto firms to kind of move money easily. But once again, Silvergate signature major banks. For right now we're talking about Silvergate, which is a crypto bank and like I said, this might be the one who's trying to race Genesis to the line of just meltdown in the world of crypto I Want to quickly play this for you? uh from Mark Cohotis? Uh, I've had the pleasure of interviewing him before and honestly with the craziness going on in Silvergate I am going to invite him back on. but I just want to play this for you because this might be the next player that is no longer going to be in existence. and there's something else that that came to my attention on Friday that I want to warn people about and it's a stock and it's called Silvergate and it's simple S-i and they're the financial so-called bank that allows all these transfers and things to happen. And they have about 14 billion dollars with a B in deposits and they're largely from these offshore entities and get a load of this. they transfer last year one trillion dollars between these offshore entities and customers. one trillion dollars off of 14 billion deposit base and this name was brought to my attention by who I think is the best bank analyst on the planet next Porter Collins of The Big Short Fame And he thinks during the process right now of having a run on the bank and they put out some bogus press release on Friday saying that FTX was only a billion dollars of their deposits and they didn't have any loans to them in the and the stock went up after ours Friday But as Porter said to me, it's a deposit story. It's not a loan story. If they lose all their depositors, there's going to be a run on the bank. It's not just FTX either. So I mean that's the whole point, Is it? it's not. It's not FTX they do business with the worst of the worst and and the crazy thing is these guys are so stupid at SI right? The CEO's son was the head of risk so they figured out something was wrong and and before FTX went bankrupt. this is what they promoted it says this is from their website it says Life as a crypto firm can be divided up into before Silvergate and after Silvergate, it's hard to overstate how much it revolutionized banking for blockchain companies and that was endorsed by Sam Bankman Freed founder and CEO of Alameda research and FTX it's crazy and they put this thing out saying it's only a billion dollars of deposits. Well if there's a run on the bank in the U.S government wakes up or the treasury wakes up and they start kicking the tires of of this Bank They're going to realize they have no Kyc on right now which is know your customer or they have no AML on right now which is anti-money laundering because FTX is a criminal operation cut and dried and if they were doing all this business for FTX look at what happened to all the banks that did business with Madoff and things like that. So this is serious ass and and the fact that they put out a press release on Friday to try to Hype their garbagey ass stock you know real guys reached out to me and said can you believe this and I said it's absolute dog So I am short SI I think SI is garbage and they need to be called out just like FTX needs to be called So from that which I personally believe one day will all be proven to be true. it is evident that between these crypto firms and really these crypto Banks it seems like they're all in cahoots with each other. they are I mean it like I said I feel like every day I mean just a hellish Groundhog Day where every day it's repeating. but somehow it's repeating and getting worse and worse and worse. And the fraud is becoming more and more and more evident. Like I mean just check out this headline ether Falls as the FTX hacker dumps 74 Million worth of token and swaps it for Bitcoin this in the insanity of the current FDX Meltdown debacle whatever you want to call it. this is like a little footnote: the fact that right when all this was happening almost 400 million dollars right around the bankruptcy, they left and they're like oh yeah, yeah, we just got hacked. like do you realize how crazy that is and now the person's actively selling and they're not necessarily manipulating the market, but we're seeing the impact of their actions on the markets and this is like a little footnote that just I guess does a good job at highlighting and showcasing how truly insane it is. But this brings us to the final question of how I started this video off was how deep does the rabbit hole go, How many people really knew, and how many people in positions of power knew. So just to kind of put a tie on all of this: U.S Prosecutors open probe of FDX months before its collapse long before Sam Bakeman Freed's FTX Cryptocurrency the Empire collapse this month it already was on the radar of Federal Prosecutors in Manhattan The U.S Attorney's Office for the Southern District of New York led by Damian Williams spent several months working on sweeping examination of cryptocurrency platforms with U.S and offshore arms and had started poking into Fdx's massive exchange operations. We live in a very real scenario where probably one of the largest scale Financial schemes ever went down and apparently the U.S attorney's Office was already looking into it. Did they alert the public? No, We already know that FTX particularly Sam Bakeman Freed had meetings with Gensler Did anything happen there? No. In fact, we have people within Congress accusing Gensler of helping FTX get a regulatory Monopoly This is so insane. They met multiple times. It's on the Chairman of the Sec's calendar that they met Gensler earlier this year said hey, people should be a little bit worried about crypto. It looks like people who are running exchanges are trading against their own clients. so a little bit of a warning there. but the people who had access to the information who could kind of look into the black box and make sure that everything was running above board? Where were they? Where were they in this entire thing now? obviously I don't know, but I can let my imagination run and where it runs to is the deep, deep connection between what was going on with FTX and our elected politicians. We are talking about millions and millions being donated. We were talking about elections that were running on the money that came from FDX which we're now finding out was inherently stolen from its clients. I Pray that these regulators and Congress people and really the watchdogs for all of us us Average Joe type of people aren't so corrupt that they turned a blind eye to it. but I think at a certain point we maybe have to digest reality that that could be it. That is a very feasible Avenue for this to be I Guess the insanity that is currently unfolding in front of us right now? It's a little bit, maybe too deep into the rabbit hole. but also that doesn't necessarily mean that it's wrong. and because of that I Want to know your thoughts? Please let me know. In a comment below: Do you think that the only reason this got so bad was because the people who were supposed to protect us was turning a blind eye? Or do you believe that they simply truly did not know? And it's more of an embarrassment that they couldn't catch up and recognize what was going on right under their nose? Please please let me know.