What's going on, Moon Gang? Or maybe a better question is what in the world is going on with crypto? Personally I Thought everything would kind of stop with this whole FTX collapse blow up, but now there's really really weird things going on with Finance Obviously crypto in general has been a little bit sus lately, but the interview that the CEO of Binance CZ gave to CNBC this morning was cringe-worthy and it honestly makes me feel a little bit uncomfortable with what's still currently going on. I Guess another way to put that is I don't know if we're out of the woods quite yet now obviously I don't have much going on in my life which means I have all the time in the world to cut out the most awkward and cringe with reports for all of your viewing pleasure. But before we get into that, if you enjoy this type of content, don't forget to hit the like button. And don't forget to become a goonie by hitting the Subscribe button.

And with that out of the way, let's rock. And when you said no amount of withdrawals, it would put you under pressure by default. It puts you under pressure. You know whether it was you're doing or some other Banks doing.

And so the question is longer term, would you reevaluate how you do that? So we have the assets to convert. Um, so it's There's no. there's no margin, no leverage. We just needed the bank to open so the bank opens six hours later.

We it was fine. So Banks don't work for like you know, 24 hours a day Banks only work for like a few hours a day. and um, and when you try to when banks are shut down, when you try when banks are closed, you try to withdraw money. it doesn't work.

and we that's exactly the same situation that happened and we allow people to withdraw other stable coins onto other platforms to do conversion if they want. So there was not a liquidity issue, it was just there was a conversion issue that was going through the bank. now I need the buzz it right there because as soon as I hear any crypto outfit, especially given all the recent news, tell us that there's no liquidity issue. It seems like those are all the ones with liquidity issues.

This is literally the exact same rhetoric that we've heard historically and obviously I don't want it to be playing out again just for the sake of crypto, but we've heard this tune before. In all honesty I wish I could tell you that this was the worst part of the interview. but things really start to pick up from here and in a not so Bueno manner. Give it a listen.

Uh, you disclosed the Binance holds about 60 billion dollars of crypto assets, but thus far, uh, you haven't disclosed your liabilities and I wonder why that is and whether you will. Yeah, so we are working with other firms to do the other financials like liabilities. Etc Very Simply, Binance does not owe people money Venice does not have loans from other companies from other funds, but just we just don't have it. You can ask any.

Fund In this in the in the ecosystem, you can ask any of these we actually do also do not have VC Investments So we don't owe anybody any money. Well, that sounds great. What were you talking about? Man, you said that things were going to get even worse from here. Where's this possibly going to go? So this is a year in a business.

Obviously, it's not the same as you pointed out as maybe a bank, but it does I mean it relies on confidence to some extent and the easiest way would be to publish a real audit by a respected audit firm. Why is that so hard to do? Why is that so hard? So it actually doesn't. In our industry, we don't depend that much on trust. Uh, we do.

We depend on very much on verification. So you know two days ago people want to withdraw, we're gonna have an issue. Um, and um, the Usdc thing was fixed in a couple of hours. like within an hour when the bank opened.

and uh, so um, we everybody. every other asset works just fine and we are working with auditing firms. Interestingly, many other firms are kind of scared to work with crypto businesses. I Don't know how they did the audits, but artists Don't reveal every problem.

so auditor would reveal that. CeCe If you could get a big four auditor to say that if you're saying that some of them don't want to work with you, that raises questions too. They don't want to work with you because you don't have the files and the data that would make them feel comfortable signing off and and giving that stamp of approval. Shots fired.

Actually, many of them don't even know how to audit crypto exchanges. Um, they don't. They don't. They don't really when they.

So when they audit they are. They're very used to auditing or firm. Um, they don't know how to order uh, user assets, different blockchains. Etc So I think that capability may or may not be there.

But even the audit that you're not I shouldn't call it an audit. Even the disclosure that you're doing with Mazars is is not. I Mean you're setting the rules for this. It's not a real audit.

You're telling them what you'll share and you're kind of setting up. They wouldn't call it an audit. Um, look, um, the and that right there is exactly where he knew he was screwed. But unfortunately for him, it continues to devolve from here.

Coinbase has a Big four auditor. Um, I Actually I I Don't look at Coinbase. We don't really look at it. So though I don't know, they understand it well Enough is the auditor.

Coinbase experience Much smaller Coinbase. much smaller jurisdiction Coverage: Uh Global coverage number of coins, number of products I'm just you know. still a bit different. see the other thing I wanted to ask you about it and this relates to uh FTX Um, yesterday Uh, Kevin O'leary testified in in front of the Senate and he was asked, where did the money go uh, meaning the FTX money and he suggested that one place that the money may have gone is in fact to you.

Uh, when Sam Bankman Freed back in 21, the summer of 21 effectively bought out your stake in the company How Concerned Are you that that money will be uh, clawed back? Are you prepared to uh, hand it back to creditors? If in fact, they were to ask and was it paid to you in U.S dollars in some other kind of currency. For a little bit more context, the video of Kevin O'leary is right here. After my accounts were stripped of all of their assets and all of the accounting and trade information I Couldn't get answers from any of the executives in The Firm So I simply called Sam Bankman freed and said, where is the money Sam He said he had been refused access to the servers he no longer knew I said okay, let's step back. This is a simple case in my mind of where did the money go and I said Sam walk me back 24 months Tell me the use of proceeds of the assets of your company, where did you spend it And then he told me about a transaction that occurred over the last 24 months, the repurchase of his shares from Binance his competitor I didn't know this at the time, but at some point CZ Or Binance who runs Binance purchased 20 ownership in San Banquin Freed's firm for seed stock and then over time and I asked him what would compel you to spend 2 billion was the number he was giving me at that time.

Later, in a substant conversation about 24 hours later, he told me he could have been as much as three billion dollars to buy back the shares from CZ Well, first of all, I think um Calvin O'leary he's making a bunch of nonsense claims and they don't make sense. They don't make any logic. Um, he shouldn't be making those claims as a celebrity investor. I'm actually very surprised that he's able to Omit a lot of different things and make some, really, uh, specific, uh, targeted things.

I Don't think the problems that existed at FTX were simply any back and forth between your two forms. It definitely led to the disclosure that there had been money that was taken, but that disclosure raises lots of questions about firms like yours. Have you done the same? Has there ever been co-mingled funds? Have you ever taken any of the clients funds and done anything with them? And again, why should we believe you? Because Sam Bankman Freed told everybody no, that hasn't happened and he tweeted a lot of the same stuff that you've been tweeting in recent days which I think gets back to this idea of show me the money, Show me the money Becky is dropping bombs right now. Yeah, so let's get back to show me the money part.

So Calvin omitted the fact that there's no records. That's not a problem to him, so he just want to talk to Sam and believe whatever Sam says, he doesn't want to look at the records. So I don't think I have the craziest opinion that what everyone's going for here is essentially transparency and that's exactly what Sorkin asked about. Well, but my question to you is a A both a bankruptcy judge and potentially others could seek like they did in the in the case of Bernie Madoff Frankly, to uh to seek to claw back that money, are you prepared to to send that money to them? And by the way, I mean and maybe this is a risk to to your firm.

You know some will measure it as uh, the value of Ftt Today some may measure it on the value of Ftt at the time. So if you had to send a check in US dollars for 2.1 billion dollars, could you? so I think we'll leave that to the lawyers. Um I think our legal team is perfectly capable of handling it. Obviously that's not the best answer, but fortunately for us Becky would not let him get away.

Would you be able to handle it? If somebody asked you for 2.1 billion dollars back, would that be okay? Would you be able to still withstand things? We're financially okay including you have 2.1 billion dollars to give away. If somebody tamed a recla to claw that back, you'd still be fine. Will let the lawyers handle it. I Find we are financially strong.

Did you see her face? If looks could kill and that? there folks is pretty much all the main points of the interview. If you want to watch the full interview, it is on Cnbc's website, so I would recommend that you check it out, but in my own opinion, I'm not feeling too confident about what's going on with Binance right now I Don't want to be that guy, but it seems to have some. FTX Vibes So with that being said, like I said I hope I am 100 wrong on this, but I would love to get your thoughts in a comment below. Obviously, if you enjoyed this video, it would mean a lot to me if you could hit that like button helps out with the algorithm.

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