Praise the Lord Sam Bankman Freed is not only now arrested 6 p.m last night in the Bahamas, but also the Commodity Future Trading Commission just filed a lawsuit against him. The SEC is filing charges. The Department of Justice is finally charges. Holy Smokes! In this video, we're going to talk about what's going on with Sam Bankman Freed some of the charges against him.

We're also going to talk about massive outflows from Binance, including the halting of a very popular stable coin. You know, my opinion on stable coins has been staying away from these coins. folks. let's get into talking about this.

So first Sandbagment Freed was arrested last night. Monday In the Bahamas Uh charges include: wire fraud wire fraud conspiracy Securities Fraud Securities Fraud conspiracy Money laundering Uh, he's so far the only person that has been charged. He's scheduled to appear in court today. The arrest was completed at the request of the United States government, which implies that at some point he'll be extradited to the United States and we'll probably see some sort of uh, delayed prosecution.

Generally in situations like this, even though an individual has the right to a speedy trial, their lawyers usually encourage them to uh, delay the trial and waive their right to a speedy trial so they can prepare their defenses while at the same time the other side to prepare their prosecution which I will say they've already had a month to prepare their prosecution. This FTX stuff has been going on for way too long and that probably said in 20 different videos and on interviews. I Can't wait for this guy to end up in jail now. Many people though, like a person like uh, we won't mention uh Bill Ackman says hey I kind of trust the kid and I remember replying to this on Twitter and saying this is ridiculous That guy Bare Minimum is criminally negligent.

Now here's something to know: when you're running an organization and you're managing people's money, you might not intentionally be committing fraud, but when I said it on the interview and with Yahoo finances, if you put a shotgun on a table that's a loaded gun and it's on a dining table and kids are around and it's pointing at one of the kids and you just happen to walk away and somebody else you know, like a little child accidentally pulls the trigger, you're still being criminally negligent for having created that situation. and I believe that's exactly what happened in this situation. Sandbagmatfried was a complete idiot with the processes he set up at FTX while fooling everyone on Wall Street that he had one of the safest platforms around. anyway.

uh, what we have now is also a potential rumor that a whistleblower helped lead to some of the charges coming out against Sandbagment Freed's providing potentially evidence. We don't actually know that with certainty yet, but that is a belief. At this point, we are expecting Regulators to look into potential Market manipulation claims especially around Luna and the Ftt token I Find that actually quite interesting because this is now regulated is coming in and setting a precedent that. listen, if you manipulate markets, we don't care if you're in a regulated market or not, we will come for you.

That's actually a big shift for the crypto industry again. The Cftc is also now suing Sandbagment Free. They're also suing his Quad trading firm Alameda research which of course Carolyn she's she runs that one boy I Can't wait to see her arrested either. Honestly, Uh, Maxine Waters was expecting at the house Financial Services Committee to interview Sam Bankman Freed by Zoom Today she released a statement saying the following: I'm surprised to hear that SBF was arrested in the Bahamas at the direction of the U.S Attorney for the Southern District of New York It's about time the process to bring Mr Sam Bacon free to justice has begun.

However, as the public knows, my staff and I have been working diligently to secure Sbf's testimony before Congress Tomorrow morning this is Joe she's been pushing for that working on it and so far Sam Begman Freed had agreed to testify today. Some folks are saying that they didn't want they arrested Sam Begman Freed on purpose right before this because they didn't want him having more of an opportunity to to potentially poison juries uh, to to go on this sort of PR pitch of hey, I'm just a dude who made a mistake, right? They wanted to shut him up and honestly, what's crazy is I was standing at the New York Stock Exchange with Fintech TV yesterday and I was talking to Vince and and I looked at Vince I go Vince I A Can't believe this guy's not in jail yet and B he needs to shut the F up and Vince looks at me. he's like it's ridiculous that they're letting this guy talk so much. He's so dumb that he's talking so much uh and uh and and now that's uh.

that's finally done Anyway, although Sandbankment Freed must be held accountable, the public deserves to hear directly from. Mr Bankman Freed says uh uh says Maxine Waters here uh as his actions have heard over a million people. Honestly, I think we've heard enough from him and I think he's incriminated himself enough in plenty of podcast interviews where he's backed himself into uh, essentially describing his fraud which is uh, which which It's pretty nice to finally see these charges coming out. Here's the: SEC The SEC today charged Sam Begman Freed with orchestrating a scheme to defraud Equity investors Those are people who invested in uh FTX but then also uh uh.

you know the the individuals who use the platform as well, the crypto trading platform of which he was the CEO and co-founder investing. You know those titles mean something. Co means something means you're the chief executive like the buck stops with you Shady stuff happens under you. You can't just pretend oh I didn't know, the buck stops with you.

It's your job to know in this investigations as to other security law violations and other entities and persons relating to misconduct are ongoing. That's a tease right there to potentially further Uh arrests and charges coming. We're going to talk about Uh Binance, by the way, in just a moment. But according to the Sec's complaint, since at least May of 2019 FTX raised more than 1.8 billion from Equity investors, including about approximately 1.1 from 90 based U.S Investors Wow.

90. that's uh yeah, that's 10 10 millish on average each. There a little bit more and this representations to investors: SBF promoted FTX as a safe, responsible crypto asset trading platform specifically touting Ftx's sophisticated automated risk measures. Yeah to which apparently we found out that Alameda is exempt from the margin requirements and rules and the measures.

In other words, there are back doors that Exempted his own trading firm. from the margin requirements and the liquidation requirements that he touted, it's so disgusting. This is so so disgusting. I Mean this is this is so blatant.

Uh I I Can't wait to see this person. uh, 20 years in prison or more. The complaint alleges that in reality SBF orchestrated a years-long fraud to conceal FTX investors, the undisclosed diversion of FTX customer funds to Alameda research has privately held crypto hedge fund and the undisclosed special treatment afforded to Alameda like I just mentioned, including providing Alameda with a virtually unlimited line of credit funded by the platform's customers and exempting Alameda from risk mitigation measures, margin calls, and the undisclosed risk stemming from Ftx's exposure to Alameda significant Holdings of overvalued illiquid assets such as FTX Affiliated tokens like Ftt. complaint For further alleges that SPF used commingled FTX customer funds at Alameda to make undisclosed Venture Investments lavish real estate purchases in the Bahamas for his friends, his family, employees and large political donations publicly to Democrats and then He suggests also equally in Hidden channels to Republicans uh Because He believes that gave him a more favorable impression to the media.

It's so disgusting. We allege that SBF built a house of cards on a foundation of deception while telling investors it was one of the safest buildings in Crypto says: Gary Gensler The alleged fraud committed by SBF is a Clarion call to crypto platforms that they need to come into compliance with our laws. Well get to it. SEC Compliance protects Uh I I Imagine they're working on it, but boy, like, let's let's yes, let us get more compliance.

I mean maybe there I Think they might be bound by Congress here. so I don't I don't know, but it's taken a while anyway. Compliance protects both those who invest yes, and those who invest in the platforms yes. With time-tested safeguards such as properly protecting customer funds, separating conflicting lines of business, it also shines a light into trading platform conduct for both investors through disclosure and Regulators uh through examination.

Authority Yep, that's true. You get that blessing from the SEC We're going through a reggae filing for our house hack, uh, startup. You can learn more about that by going to Househype.com and read the accredited uh purchase, a private placement memorandum there. that's a solicitation.

This video is not to those platforms that don't comply with our Securities Law So the Sec's enforcement division is ready to take action. Okay, and we kind of get the idea here. I Really want to talk about Uh Binance? Uh, do. Quick little skim here.

Operated under a near of, uh, legitimacy. But as we allege that veneer wasn't just thin, it was fraudulent. That's actually a big statement. there.

risk controls failed. Very real risks. Uh, in in a misuse of funds unregistered securities. The Sec's complaint seeks injunctions against further security law violations, an injunction that prohibits sandbankment freed from participating in issuance, purchase offer, or sales Securities except his own personal account, disgorgement from all ill-gotten gains, a civil penalty, and an officer and director bar.

Which means you can no longer be like a CEO or CFO or whatever. It's pretty big now. Uh, let's talk Binance for a moment because that's uh, that's pretty big as well. Uh, so we've got.

uh, we've got some Binance news and a lot of it is writing after this arrest here of Sam Bankman Free because uh, you know I've made some videos talking about how CZ is is. You should be skeptical of of some of Cz's decisions including hiding in Dubai How much staff do they really have? Why do they when they go to show their offices to to reporters? Is almost nobody there? Oh, they're all virtual and remote workers and uh, uh, you know why? Why uh, why does CZ never want to come to the United States Because he's worried about being arrested over here. They're there. And who actually owns Binance? Nobody really knows because there's so many entities involved.

Uh, reports by Bloomberg show that anybody who's tried to sue Binance has has tried and failed because they can't even figure out who to serve the papers to because the ownership is so Arcane for Binance. Oh I would if I had any dime on Binance like I've been saying for months, get off, get off. like get everything off exchange and that's actually exactly what's happening. After a Binance halted Usdc withdrawals citing a coin swap update coming.

by the way, that sounds really, really bad and Shady uh, net outflows for the past week and Binance have hit 3.7 billion dollars. Nearly two billion dollars in just the last 24 hours. In the last 24 hours, those one day withdrawals are coming in 18 times higher than usual and there's a potential Department of Justice investigation a new one. It's already investigations.

Uh, coming to Binance CZ Of course on Twitter is reiterating the firm's Outlook saying things like ignore the fun, keep building Binance Coin is down 3.45 on the week. while Bitcoin and Ethereum are up five to six percent of the week, you've got Market Maker jump trading polling funds from Binance 18.4 million out in 24 hours, 123.4 million out in seven days. Eight times more trading volume uh, on Binance than on Coinbase, but Coinbase has actually seen a small inflow over the last 24 hours, although still almost a half a billion dollars of outflows in just the last week. Uh, people are getting off exchange finally and it's sad that it's taken this.

You know, these sort of collapses here, but I don't think the pain is over for Crypto? Uh, we we really do need Ethereum and Bitcoin to Trend up to save Binance in my opinion. not that I think they deserved saving, but I do think there are a lot of people on Binance and I don't want to see anyone else hurt. but uh, you know, Uh, here's uh, what is this? A few thumbs up People who fail to see the FTX insolvency now calling for everyone else to be insolvent out of PTSD Uh no. I I I mean I think it's out of reasonable safety, right? I think it's very reasonable of course by Nancy uh, you know CEO is.

Oh, don't worry, we're safe, but that's what we've heard every platform say. Voyager Digital Holos you were going to be safe. Uh, binance. uh FTX said you were safe.

Everything was fine. Went bankrupt soon after Voyager Went bankrupt soon after block fight. Don't worry, everything's fine. We're processing withdrawals.

Everything's fine. 12 hours later, we're freezing withdrawals and we're going bankrupt. People are panicking because it's their money. You know nobody wants to lose their money.

You know this. I think is so odd that 62 billion dollar asset and net worth item here? Uh, just look. I understand it says debts and a here which I think is odd because why would it not have a number right? Why would it not say zero if the debts were actually zero? But here it says asset slash net worth. Those are not the same thing.

Assets are assets. Things that have value, net worth is assets minus debts. So asset slash net worth is is not this. This seems like it was written by somebody who has no accounting background.

I I Don't trust this as far as I could throw it. CZ says Fudd helps us grow I see what he's doing I mean he's really trying to kind of take the momentum of anger uh in in the crypto community and suggests, but don't worry, we're the White Knight you know Come Grow With US Meanwhile, he's limited responses to people who follow him or are mentioned by him. uh, you know. goes back into some of the 2017 history about how they were flooded against in 2017 and survived.

Uh, you know, whatever. Uh, on Usdc, we have seen an increase in withdrawals. However, the channel swap from Uh Bax to B USD to Usdc requires us going through a bank in New York in USD the banks are not open for another few hours. We expect the situation will be restored in a few hours when the banks open.

These conversions are one to one. No margin or leverage involved. Okay, so he's you know, obviously trying to address the concerns that people have. It's just still concerning that.

really. all of a sudden Usdc conversions are all of a suddened out working because the withdrawal were so bad. I think there's Panic going on here? I would not be in any platform right now. Crypto, Not your keys, not your crypto.

Uh, these are some incredible developments though. We'll see how developments move on. Uh, sandbankment, freed and uh, folks, there you have it. Thank you so much for watching.

Make sure to subscribe. Check out the programs by building your wealth lab below with a coupon code PP expiring tomorrow extended to tomorrow so we can get back to the emails for folks requesting bundles at Kevin.com Thanks Goodbye.