You cannot believe the bankruptcy filing for FTX this morning and it is a complete disaster. It is such a disaster and it is such a disgrace that one of the most respected columnists at Bloomberg Mr Cruz this morning wrote: If You had told us three months ago Alameda was embezzling funds with FTX Nobody would have believed you FTX Had a seat at almost every single major Financial conference right next to the Barclays and the Goldman Sachs and the major institutions and certainly plenty of seats around. Democrats Given Zambankman Freed's over 30 million dollars of donations in election Cycles Well now, U.S Securities Regulators are considering filing charges against Sam Bankman Freed which would lead to his extradition from the Bahamas to the United States where he could be charged and potentially arrested as soon as within the next week. Now yesterday, Sam Bankman Freed was seen in a local convenience store alone still wearing an FTX shirt with no security and flip-flops on. and people are like this guy doesn't seem to think this is serious and it's either a massive element or massive case of Epic stupidity or epic non-caringness I've just made that word up or lack of empathy I think is a better phrase but I Want to show you some of the comments that are being made around this bankruptcy because it's absolutely terrible before. I Show you Uh, because I mean so many people are losing money? It's just a disgrace before. I Talk about some of these comparisons of FTX to Enron and how bad some of the things really are. And I'm going to give you some of my own Insight working with Regulators whether it's the St SEC or other Regulators I Want to talk to you about kind of some perspective on how this works I I Want to make this very clear on my channel? Yes I used to be sponsored by FTX I think that is a disgrace and it's a scar I Add a scar to me and it sucks. If I could go back I would change it because people got hurt because of that and I feel so terribly about that. people got hurt because of FTX and it's just a disgrace but they had everyone fooled. That doesn't make an excuse for it I lost money involved in this as well and it's terrible. But folks, let's just try to dive in and understand as much as we can. so that way we can move forward and learn from mistakes that were made. I Also want to say that since December January so 2021 to 2022 back when I sold my stocks in 2022 in January one of the big things that I warned about was what I thought would be this transition from me thinking okay, 2021 when we go into 2022, everyone's gonna have so much inventory people are going to advertise more. but that changed when the FED minutes came out and when I sold my stocks in January because I realized oh my gosh, wait a minute if we just go into a technical recession, the first thing that's going to be cut is advertising now. obviously I had no idea how how long all the pain would last and the pain is still here and happening. You know again, mistakes can can be made and War made. But what's crazy is some folks are now taking my comments about the macro and they're trying to slander me suggesting that I knew somehow knew that FTX was going to go bankrupt because I said this advertising frenzy that companies are going through is not going to last and so people are combining that with oh FTX isn't going to last and it's just like man, you must be really miserable in life but uh to to try to mislead people by stitching things together like that. But you know, anytime somebody, uh, questions your integrity, the best thing you can do is just be open and transparent. Obviously I had no idea they were going to go bankrupt I would never want to intentionally hurt anyone and put one foot in front of the other, apologize for mistakes that are made, and move on. So let's get into some of this because it's quite remarkable. Look at this commentary here. This legal expert here says that he's worked as a chief restructuring officer a Cro for many firms, including the allegations against Enron which was a complete disastrous meltdown of a massive, massive company along with many others. But what's remarkable are these comments. Look at this: Never in my career have I seen such complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here at FTX. Now this is pretty remarkable and you're going to see some more details about this in just a moment. But some of the most important things as now a licensed Financial Advice for us to handle at our company is we have to make sure that every one of our systems is not only secure dual Factor Identification Update: I Mean those are like bare minimums, right? But we have to have central control so we can disable an employee's email access if we need to. You're going to see it in just a moment that some of the crypto keys that were held at FTX were in an unsecured email. So you might think what I'm saying central control and dual Factor identification and strong passwords is is basic. But here's FTX throwing people's keys in a shared unsecured email and it's like oh my gosh, No wonder a hack happened to occur right after they went bankrupt because everybody had the freaking Keys Any random employee could have been like up. Yep, I'll take that Throne into tornado cash and they could make off you know like Madoff uh with with hundreds of millions of dollars of people's assets I mean this is just a disgrace, but it rises beyond that too. We have to segregate how we back files up. If somebody deletes an email and then goes into the trash and deletes it, we have to be able to recover that. These are like basic SEC Compliance rules For being a financial advisor, you have to make sure you're subject to Audits and strict controls. Now a lot of people look at this and they hear controls which controls their systems and procedures for making sure that you know things are as safe as freaking possible. especially with other people's money. Uh, you know you have. You're subject to these sorts of audits and when you don't do these things, you could go bankrupt really, really fast and nobody wants to do that. Apparently though, FTX just didn't care because what's remarkable is at the end of this commentary that I'm going to show you look at this: Mr Bankman Freed whose connections and financial Holdings in the Bahamas remain unclear to me. Recently stated to a reporter on Twitter F Regulators they make everything worse, you know and I think this is just such like a such a high level of disrespect for you know Regulators that it's just a disgrace to the entire industry. People think oh, regulation is bad, but what regulation does is it protects not only companies but also users. So that way when things go wrong, there are checks and procedures to be able to solve those. And these are some of the things by the way that we're going to be talking about in the Elite Hustlers University Course Link down below: Make sure to join before the Black Friday event and you'll get access to both live streams the course member live streams and the Elite Hustler exclusive live streams after. Black Friday The special access to the Elite Hustlers University will be separate from the course member live stream. so if you enroll after Black Friday for the Elite Hustlers you'll just get the Elite Hustlers live streams which are going to be really incredible as well as the extra daily content that comes out. Remember, no monthly fees, All monthly fees have been gotten rid of. So I just want to go through a little bit more of this article here with you, because it's it's quite remarkable. In addition, in connection with investigating a hack, Sam Bankman Freed and Mr Wang stated in recorded and verified texts that Bahamas Regulators instructed that certain post petition transfers of debtor assets be made by Sam Bakeman Freed and others. Now, this is a little complicated to understand, so let me just break this down in very, very simple terms: in a banker bankruptcy proceeding: I can't even say the word in a bankruptcy proceeding. editor is anybody who has a claim against FTX or the company filing bankruptcy. A debtor is somebody who's left in control of the money that's left and is owed money to the creditors. And after you file for bankruptcy protection, you have to make sure you don't screw up things and make it even worse. And so when all of a sudden they say here that through text messages Sam Bankman freed after filing for bankruptcy, took assets and transferred them around. Total total violation of bankruptcy rules like nothing happens anymore to assets after a bankruptcy begins. This is a complete complete lack of respect for how systems and procedures are supposed to operate. And really, it's it's really embarrassing that I was ever even associated with I mean like I don't I never had access to be able to audit them or understand their internal controls and again not trying to make excuses. They're platform was great. Their iPhone app was okay, it had some limitations, the web app was better, but anyway, now it's just like oh gosh, this sucks, but just again for learning purposes, look at this. Here's another one: The debtors did not have the type of disbursement control that I believe are appropriate for a business. Empire For example, the employees of the FTX group submitted payment request through an online chat platform where a desperate group of Supervisors approved disbursements by responding with personalized emojis. This is so terrible. Like, the way accounting is supposed to be handled is you are supposed to send an invoice anytime you want to be reimbursed. Let's say, you're an employee and you need to be reimbursed a thousand dollars because you bought a printer for the company or whatever you're supposed to say. Here's a signed letter saying I'm asking for a thousand bucks back for this printer I Bought Here's the receipt showing it cost a thousand bucks and now we're gonna scan it. We're gonna back it up. We'll send it in to the accounting team. they'll write a check or or ACH money over to reimburse. Now when you go into QuickBooks later, you're like, okay, we see a thousand dollar transaction. We're going to expense that as business equipment and the employee then receives the money. It's very, very simple. That sounds complicated, but like anybody who understands anything about even just basic QuickBooks or Basics Basic business management is like, um, yeah, that's that's pretty damn typical, you know, or like when you're more of a solopreneur, usually that just takes the form of like, all right I have the receipt now I'm going to transfer money from you know, let's say, my business account to my personal account to reimburse myself. but I'm going to document that transfer with you know, proper journalizing like a memo and a receipt to back that up. And now we're even hearing that employees at FTX had not only any kind of access to borrowing they wanted, if they wanted to borrow hundreds of millions of dollars like Sambangman free, did they just borrow it from customer funds? But on top of that, apparently apparently people were buying homes in the Bahamas off of the money that was in these FTX accounts under loans. This is just absolutely disgraceful moves. Now when it comes to the Auditors I Have to say this tweet of mine, like for my Twitter or Twitter Channel kind of went viral. Uh, so I was really impressed by it. but I tweeted uh, about a week ago that of course the firm that audited FTX was the first ever CPA firm founded in the Metaverse and it the Tweet went viral because it's just like it's so ridiculous and I put the little screenshots up of it and so in this document this this chief you know restructuring Officer says the audit firm for for this company for FTX uh was Armanino LLP a firm with which I am professionally familiar. the audit firm for Uh.com Silo is another part of FTX was Prager Metis, a firm which I am not familiar with and whose website indicates they are the first ever CPA firm to officially operate in The Meta it's Metaverse headquarters in the Metaverse platform to Central land I Have substantial concerns as to the information presented in these audited financial statements, especially with respect to the Metaverse audited side. You just. you just can't make this stuff up. How absolutely insane this is. At this point as well, the debtors have been unable to prepare a complete list of who worked for FTX Like contractors and employees, they don't even have a proper understanding of their company organization and who works for the company. and this is so disgraceful. They also Exempted Alameda From the Margin Call requirements that Ftx.com had, you know like when your the value of your your assets let's say you invest in Bitcoin with borrowed money falls below a certain point. you get an automatic Margin Call while Alameda was Exempted From that they just sort of gave them a backdoor exemption. A bunch of talk about unauthorized transfers, the printing of 300 million dollars of the Ftt that's the FTX token and then of course the big middle finger to Regulators. This is just like it It continued and then this talk about like now there's a sex tape that's going to come out like this. this one day will make a movie. It's like instead of The Big Short it should be called the big Fraud. So many people were duped by this. uh it's just so disgusting. it's terrible. uh and uh. Quite frankly I think it's the biggest Learning lesson for all of us, especially me, you know I I feel like I can't promote any company anymore other than my own, you know I've promoted excellent companies on this channel from M1 Finance I think Weeble and Robin Hood have been wonderful. Although now it makes you wonder like do they have any exposure to this sort of crypto stuff right? Ladder Life Insurance? My Kevin.com Life right. These things have these have been really good uh, programs or softwares that have helped people make money in addition to obviously my courses on building your wealth link down below. But this is just so disgraceful and just makes you fearful to do anything but. I'll tell you one thing that definitely should happen. The Millennial Money videos should come back.