Hey everyone Me: Kevin Here this is not what we needed, but more pain for the crypto space and hopefully for Sam Bankman freed Uh, that guy might be getting sent to the United States for questioning uh Bahamian Authorities would obviously cooperate with the United States in uh, extra I mean sending him over to the United States So we'll see how that goes. but take a look what we just heard from Genesis Genesis Just tweeted We recognize here. let's turn this sideways. we'll see it a little larger. All right. Genesis is saying. We recognize how challenging this past week has been due to the recent impact of the FTX news. At Genesis We are entirely focused on doing everything we can to serve our clients and navigate this difficult market and environment. Genesis Spot and Derivatives trading and Custody business remains fully operational, but wait for it. We continue to support our clients relying on US during volatile market conditions and manage their risk and execute their business strategies. Keep in mind that on one point last year, probably on a quarterly basis Q4 they were doing somewhere around 300 million dollars of volume a day. That's that's quite remarkable. and that's that's a rough estimate based on some numbers that we could see from their January reports. Uh, but uh, you know those volume numbers have probably halved to to maybe even Fallen by 70 80 percent by now, but that's still still substantial. I Mean, even if you were at 300 million a day, even if today, you're at a hundred million dollars a day, it's still a pretty decently large exchange And so what's happened? So again, before they get into it, they're emphasizing that. Don't worry, everything is fine regarding your ability to trade. However, FTX has created unprecedented Market turmoil resulting in here we go: abnormal withdrawal requests which have exceeded our current liquidity. Our number one priority is to serve our client ants and preserve their assets. Therefore, in consultation with our professional Finance advisors and Council legal counsel that is, we have taken the difficult decision to temporarily dis suspend redemptions. It's always temporary. It always starts as temporary. That's how it goes. They they freeze withdrawals, freeze your ability to get your money off of the platforms, and then what happens? You're stuck because they end up going bankrupt. Now this is for their earned product. Uh, We've hired the Best advisors. We plan to explore all possible options, which obviously could include bankruptcy. We don't know if that's going to be the case here, but uh, you know that certainly is the case given that Blockify is now filed for bankruptcy protection. FTX We already know filed for bankruptcy Protection I Mean it's just one after another right now now. Genesis Is a firm that had about 2.4 billion dollars of exposure to the 3ac disaster that was many months ago though, right? That was earlier this year. So so hopefully they've gotten past that. But they did just have to take about 140 million dollar Equity infusion from their parent company. Probably because they're just straight up out of money. We appreciate our clients' patience and resilience, blah blah blah. All right, so not so great. But another thing to know is that the company that does a lot of lending for Genesis or lends money to Genesis is actually Gemini. A simple way to understand this is Gemini basically through your authorization, takes the stuff that you say yes, please lend it out to other people and then lends it to companies like Genesis. Well, if Genesis is having problems, then the money in that earn program could be at risk and you could lose your money and that earned program whether you're at Genesis or Gemini. And this is why according to Bloomberg, both platforms are now limiting withdrawals from the earn program. Now the sad thing about Gemini is Gemini is one of those that has institutional faith and a lot out of it. And the fact that now we're seeing one part of the Gemini platform frees up is a sign that this cauldron of a disaster in crypto is just getting started. and things could get a lot worse. Especially since once institutional trust gets shaken at companies which are deemed Untouchable or impenetrably uh, secure like Gemini, then you really start having pain in the crypto. Market as potentially institutions become fearful. remember, not your keys, not your crypto. So the best thing and this is what's actually leading to a lot of these issues, in my opinion is Get your money out of these programs. Get your money out of these yield driving programs. Get your money out of stable coins, Get your cash out of these platforms, and get your coins your crypto if you have any off the exchanges. That way, you're not subject to being clawed into these bankruptcy disasters. Now again, so far are it's only Gemini urn and the Genesis earned program that is withdraw or limiting withdrawals I Expect that will spread. Now let's get another update from Sam Bankman Freed while I go through some of these updates I Just want you to, of course, remember one very important thing that obviously you watch Finance videos to build your wealth and in my opinion, there's no better way to do that. Yeah, I'm a licensed financial advisor and this is impersonal advice, but I think there's no better way to do that than getting invested in real estate. If your net worth is under 500k, start with real estate, then move on to stocks. After that, maybe you use a Roth or something in the meantime I Usually think that's fine obviously as impersonal advice. now I Want to be clear: I've got some amazing programs for you on this zero to millionaire real estate investing Do-it-yourself Property Management Use the 60 off coupon code of course there's a program on stocks and Psychology Money and the Elite Hustlers Course I Want to mention that if you get into any of the courses, you will get access to our daily live streams when the market is open and and I'm not on a cruise which means I'll be back on Monday Uh, but also I Want to make it very clear that for the Elite Hustlers Elite Hustlers have a separate live stream that you have access to. However, if you joined before Black Friday you'll happen to get access to both live streams. Okay, so really good incentive to get in before Black Friday that Elite Hustlers course. Okay, so what does Sam Bankman Freed tell us He says to the best of his knowledge as of uh, his posts on November 7th Alameda which is in his investing company had more assets than liabilities. Yeah, maybe. but but the thing that happens is when the crypto companies start collapsing your investment firm Alameda has to start writing down Mark to Market losses and the value of your not liquid Investments could actually be plummeting below your Uh below the Uh level of your liabilities and then you're upside down. That's why Bloomberg has written Alameda down to a value of zero and some argue it's it should be negative now. Sam Bangman Freed says his goal is to do right by customers. He had a nice puff piece written in the New York Times A lot of people on Twitter are very upset about that and he says his goal is to come clean, focus on transparency. But here are some things that are interesting: A few weeks ago FTX was handling 10 billion dollars a day of volume and and billions of dollars of transfers. Now remember what I said earlier at it's a Heyday Maybe you had somewhere around a hundred a million to 300 million dollars of transactions per day at Genesis Binance today sits around 14.5 billion dollars per day. So when Sam Bankman Freed says FTX was sitting around 10 billion dollars a day, These freaking people were Huge I mean this company was Huge I mean this was one of the the top two exchanges. It's insane how much volume they they had and it's so incredible to see someone like Sam Bankman Freed screw it up so badly and it's just it's It's disgusting and certainly smells very and extremely fraudulent. especially with how many people are going to be losing money here. I Think this person deserves to be sitting next to Bernie Madoff Oh so frustrating. But anyway, he argues there was too much leverage. More than I realized it's like is he the only one working there? It's ridiculous. A run on the bank and market crash, exhausted liquidity. So what can I do? Raise liquidity, make customers whole and restart? Maybe I'll fail. You know people are laughing at him on Wall Street for trying to raise money I Don't think he's going to be able to raise much money. People are not very happy. But anyway, whether or not you believe his numbers here. Sam Bankman Freed has been looking to raise somewhere around 8 billion dollars. That's probably what he needs to bail everyone out and restart. I Don't see it happening anyway. Again, not your keys, not your crypto. Check out the coupon down below and folks, we'll see in the next one. Good luck.