As of the time of making this video, Sam Bakman Freed is in court facing a maximum of 115 years in prison. In addition to the direct evidence of his crimes of which there is plenty, the prosecutors are also trying to expose that his entire Persona of effective altruism was a carefully constructed lie. For example, his ugly haircut gives the impression that he doesn't care about his physical appearance. This feeds into his effective altruism narrative that he doesn't care about himself and just wants to maximize his positive impact on the world according to testimony from his then girlfriend.

Caroline Ellison SP SPF put great effort into his physical appearance in an attempt to create this false narrative. Similarly, his choice of driving a Toyota Corolla was highly calculated. He originally had an expensive car paid for by FTX likely with customer funds, but he decided to switch to a cheaper car to further bolster his effective altruism image. It was all a lie.

He spent roughly 10 times more on luxury Bahama's real estate than he gave to charity, and it was all stolen money anyway. But people fell for it. They thought that Sam was a benevolent genius who cared about doing good for the world With the evidence against him overwhelming. Mr Bankman Freed will likely spend the rest of his life in federal prison exposing the extent of his depravity at this point.

feels a bit like beating a dead horse. but as we will show, pretending to care about charity is a common tactic used by many to extract money from their gullible followers. One of the worst offenders still at large today is Chamath Paah Haba a venture capitalist who leverag his large following of retail investors to take four companies public via Backc between 2019 and 2020. Every single one of these companies has been a complete disaster and Retail investors have lost billions of dollars.

Of course, investing is risky and nobody can ever guarantee the future performance of any given stock. Yet, despite his retail followers suffering catastrophic losses, Chamath personally pocketed an estimated 700 $50 million from his spax. This is because he received hundreds of millions of dollars worth of shares for free as a sponsor and dumped his shares early to leave his retail followers holding the bag. Not anyone can just wake up one day and create a spack.

You need a mass of Gable followers who are willing to buy what you're selling. as we will show in this video for the past 5 years, Jamath has been carefully crafting his Public Image as a benevolent billionaire in much the same way that SPF did. This eventually allowed him to extract hundreds of millions of dollars from his unsuspecting followers. The disaster of FTX shows how important it is to only put your money into regulated and trustworthy brokerages such as today's video sponsor Mumu Mumu is regulated by the Sipc meaning that your Holdings are protected up to $500,000 born in Silicon Valley Mumu provides unparalleled tools which Empower you to become a better investor.

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It's a commission free brokerage, so there's no reason not to check them out by clicking the link in the description below. Chat's original claim to fame was being one of the first employees at Facebook and he credits himself with helping the company grow from 90 million to 1 billion users. While he was there, he became a very wealthy man with the appreciation of his Facebook shares. But as we will see, whatever money Chamoth makes, It's never enough.

He always wants more. After leaving Facebook in 2011, his next money-making idea was to start a venture capital fund called Social Capital. It's not uncommon for former Tech technology Executives to transition to venture capitalists, but what differentiated Social Capital was that it claimed to be purpose-- driven. The goal was not only to generate a profit, but supposedly they seek to make a positive impact in the world, hence the name Social Capital.

For the first few years, Jamath kept a relatively low profile, but in or around 2018, he started making frequent appearances on financial media Outlets like CNBC in Bloomberg Like any venture capitalist, he gave General commentary about the say of the technology sector. But what made Chamath Stand Out is that he would also criticize groups he used to be involved in. For example, he began criticizing Facebook for failing to police misinformation and having a negative effect on Teen Mental Health. This is despite the fact that he himself was one of the chief architects of Facebook In the early days, he criticized The Venture Capital industry calling it a Ponzi scheme and that's despite the fact that he himself ran a venture capital fund for many years.

While his propensity to criticize his former professions might seem strange at first, it was all part of a calculated plan to bolster his Public Image He is someone who Rose to the top in the technology Inventure Capital world and saw the unethical practices from the inside. But as the benevolent man that he is, he wants to expose this corruption and create a better system. This goes back to the name of his fund: Social Capital He had a purpose to make the world a better place. In 2017, Chamath gave a talk at the Stanford Business School where he discussed his investment philosophy and what motivates him to make money.

We'll see some uncanny similarities with how PF tried to portray himself myself to do the things that I wanted to do and so in a situation where you know you go to like a restaurant if you really empathize with the people that are working there I see people who are like me um brown skinned working hard creating these beautiful experiences and then I can celebrate it by you know I guess giving a Yelp review but you can't bu buy food for your kids with Yelp review. So I want a tip and um it's it's so I mean hon it gives me so much joy because it's like you know you'll have like a three or $400 bill and some cases you know you tip 500 bucks or th000 bucks and you close it and they're expecting $40 and I mean then I'll get a little emotional like they they will come out to you and they're It's transformational and so it's such a great it's so great it's just like little things like that mean a lot to people and just to be anonymously generous like that I think is like it's a great gift that I have the ability to do. that's why I do it I love it and it sounds like the experience of being seen and get you are seen and the the individual is seen and you're sharing in that. Well I mean okay you know what's funny is like 99% of the time they don't say anything because they they they do the bill thing afterwards and they for for sure can't pronounce my name and so they for sure have no clue who it was that gave them the dip.

It's fine, it's totally fine, but I Love it I Absolutely love it! Chamath starts off this interview by talking about his selfless generosity giving $500 tips when he goes to expensive restaurants. He specifically says that in most cases the waiter doesn't even know who gave the tip, presumably because he goes to the restaurant with multiple people and thus the waiter doesn't know who the tip came from. But Chamath is so benevolent that he isn't doing it for public recognition, he just wants to do something nice for the waiter. But if he really doesn't care about public recognition, why is he bragging about his generous tipping at the Stanford event which will be viewed by millions of people, Spending a few hundred on tips is a small price to pay to burnish your Public Image We can draw parallels to SPF Take the example of this article published by Seoa Capital which was one of the biggest funders of FTX.

It's basically a puff piece talking about what a great guy he is. They deleted the article after FTX X collapsed, but archived versions are still available. Seoa interviewed SPF about's charitable philosophy. He says that unlike some people who give to charity to fulfill a selfish desire to feel like a savior, he is completely selfless and only cares about the starving children that he can save.

This is obviously BS If he only cared about saving the starving children that he can save, why would he be wasting his time getting Sequoia to write this puff piece about him? In hindsight, we can see that it was all part of an elaborate sherro. He wanted to gain the trust of investors and customers so that he could defraud them for his own personal enrichment. It's the same with Chamath talking about his supposed generous tipping After setting the stage with the Tipping remarks. Jamath proceeds to justify his desire for money.

There's a deep connection between money as an instrument of change and what you're doing Now at Social Capital Here's the thing. There's about 150 people that run the world. Anybody who wants to go into politics. They're all puppets.

Okay, there are 15 and they're all men that run the world. Period. Full stop. They control most of the important assets, They control the money flows.

and these are not the tech entrepreneurs Now they they are going to get rolled over over the next 5 to 10 years by the people that are really underneath pulling the strings. and when you get behind the curtain and see how that world Works what you realize is it is unfairly set up for them and their progyny. Now I'm not going to say that that's something that we can rip apart, but first order of business is I want to break through and be at that table. That's the first order of business.

and the way that I do that is by proving that I can do what they do as well as they do it and then do it better than how they do it because at the end of the day they are commercial animals. Okay, and they'll open the door out of curiosity and they'll let me stay because I because I add value and then once I'm there, I can open the door for other people who can try to do the same thing. So my entire goal now is that is to be in a position to aggregate enough of the capital of the world to then reallocate it against my worldview. And I'm not saying my worldview is the best or right, but it is mine.

And at the end of the day there are 150 other guys with their worldview and they don't give a what you think about their worldview. That's the truth and so why not me? Why not? Why not one of you? Why not? And so in my life now, I'm just kind of like. why not? Why the not? Here We get a rare glimpse into the mind of a delusional narcissist. According to Jamath, there's a group of 150 people who control the world.

He gives no evidence for this and 150 is just a number he made up. His goal is to rise the ranks and get a seat at the table with these people. Presumably Zuckerberg is one of these people as it's the only important person that he's ever had had meaningful interactions with. He wants to amass a large amount of wealth so he can become one of these 150 people and start shaping the world as he sees fit.

This is completely delusional. Even if his facts were successful, he would never come close to being one of the 150 people who supposedly control the world. We saw the same delusional sense of self-importance with S. SPF.

In 2022, a few months before his Ponzi scheme collapsed, he gave a bizarre podcast interview. He said his effective altruism was going to save the world and thus saved hundreds of trillions of people in future. Generations Figures like Chamath and SPF often position themselves as Visionaries on a grand journey to revolutionize the world. They make outrageous claims to attract and persuade Their Audience Many are drawn to invest with them, hoping to be a part of this transformative Vision we're doing to make sure we're on the right track.

and I had this observation which was um I started a diabetes business. my dad died of diabetes 3 years ago. Most of my relatives have it I express the gene that makes me, uh, disproportionately suscep to it. so it's something that I personally care about.

but that business took s years to get to a place where we even have a chance of being viable. And I think to myself in that example I embodied a bit of Caroline wasaki when things got hard I pushed through the pain. Now in my case, the pain was the fear of failure continuing to write more money, a belief that I had that this business was going to work and today that business manages a million diabetics. and I think there is some kid out there whose family will be slightly less dysfunctional because their parents disease is better managed.

It's not going to go to a place where like you know they're getting dialed or you know they're on an organ registry and that value for that kid and our world and all of you that benefits will never be connected the dots. but that's okay, but it required just resilience. Uh, and I'm proud of that. and so I want to bring back a little bit of that here so that it's not quick.

Fast 5 million users, 10 million ma. Flip it, Sell it crate. Celebrate! It's like hey, let's work on some hard together. Let's like buckle down and look each other in the eye and say we're going to support each other here.

This going to take seven or eight years, but if it works, it will really mean something and it's something that matters to you for something that's other than just simple motivation of the social capital you get from your friends or money in the short term and winning bigger Longer term Here Choth tries to differentiate himself from other Venture capitalists who try to flip businesses to make a quick Buck Jamath, on the other hand wants to grow a business for 7 to 8 years to make a real impact. While this comment might sound innocuous, now, we'll see how he makes a 180 turn once he launches his backs money. I will play the God game and I'll win win cuz I Want the money cuz I want to extend my influence. Do you know what I'm saying Yeah, they want to return.

It's fine. Yeah, he wants the money cuz I want to win I I So deeply want to win again. We see his delusional narcissism on full display. He makes no secret about his desire to accumulate material wealth, which is fair enough.

Who doesn't want to become rich? but he says that his desire for wealth is not due to a desire for personal consumption. it is instead a tool for him to gain more influence and make the world a better place. For years, Chth made great efforts to bolster his Public Image as a Visionary purpose-driven and long-term investor in contrast to others who just want to make a quick Buck Chamoth focuses on running businesses for many years to create a real impact. This set him up perfectly for massive money-making opportunities.

First back transaction to be successful. You need a majority of the shareholders to vote in favor of the mergers in 2019 and 2020. Jamath took four companies public via Spack Virgin Galactic Sofi Open Door and Clover Health His Public Image and reputation gave him a huge advantage over other Spa sponsors. He was able to secure Prime airtime on CNBC to promote his stocks and convince investors to buy in.

Importantly, Chamath would stress that he's investing his own money into these companies and plan to stay invested in the long term. Chamath has over a million followers on Twitter and hundreds of thousands of subscribers on his all-in YouTube channel. Many of his followers are amateur investors who look up to him and want to invest alongside him. Chamath has been a fierce critic of the IPO process, saying the investment Banks charge excessive fees and have conflicts of interest.

So what's his solution? Of course, instead of paying the Investment Bank you should pay him. There are legitimate criticisms to be made about the traditional IPO process, but on every metric, Spacks are even worse. The fees are substantially higher and the conflicts of interest are far worse. Let's look at the example of Clover Health: Jamath and his associates received 4.7% of the shares for free.

This was worth $200 million at the time and was 25% of the shares that the spa investors received. Thus, the spa investors effectively paid a 25% fee to Chamath. This is far higher than the 7% fee an investment Bank typically charges in a traditional IPO Last year, we made a video exposing the deceptive ways that Chth tried to obfuscate the complex fee structure Link in the description below. The main takeaway is that Chth portrayed himself as being aligned with the other shareholders and that he can only make money if the stock price goes up.

The reality couldn't be further from the truth according to an analysis by the New York Times Jamath profited $750 million from his spax even as his retail followers lost billions of dollars as the stock price has plunged. This is because of the huge number of free shares that he got as a SP back sponsor and the fact that he dumped most of his Stakes at high prices. The most outrageous example was Virgin Galactic where he dumped his entire stake just months after telling investors on his all-in podcast that he remained fully committed to the company. Virgin Galactic has been a complete failure of a business suffering from repeated delays.

As executive chairman, Chamoth probably saw what a dumpster fire the company was from the inside and quietly dumped his shares. Remember that for all of these facts, Chamoth claimed that he believed in these companies for the long term. Instead, he dumped his shares to make a quick Buck. This is exactly what he criticized the other investors for doing in the past and said he differentiated himself with his long-term Horizon And remember that Chamal said that he wanted to accumulate as much wealth as possible to gain influence to make the world a better place.

In reality, he is much more focused on his own hedonistic desires: buying a $75 million private jet. The most despicable thing about Jamath is the utter contempt that he has for his followers. One investor complains that he lost everything following Chim's advice to buy shares of Virgin Galactic Even as Chth was quietly dumping his own stake, Chamath responded by saying he didn't inflict any losses and you should stop being a victim. Chamath lured investors in with his carefully crafted public Persona Now he's sitting in his private jet laughing at his followers who are dumb enough to buy into his facts.

The moral of the story is that whenever you see someone talking about altruism or making the world a better place, know that it's almost always a lie. All right guys, that wraps it up for this video. What do you think about Chamath? Let us know in the comments section below. As always, thank you so much for watching and we'll see you in the next one.

Wall Street Millennial Signing out.