You cannot make this stuff up. Look at this tweet that I sent yesterday I wrote you have got to be effing kidding me. This by the way is like 14 000 likes. like thank you for liking and retweeting this uh I'm at Realme Kevin on Twitter But look at this. You've got to be effing kidding me. Audits for FTX were performed by the quote first ever CPA firm in the Metaverse. It wasn't even that hard to figure out. Look at this who audited FTX Prager Metis CPA was one of those who performed audits on FTX and Ftx.com in the United States for Fiscal 2021 you just Google Prada Prager mattress Prager Mattress first ever CPA firm in the Metaverse. You literally can't make this stuff up and then I write the CPA Firm Probably also had no incentive to actually care because there's no regulator supervising these audits. Fat paycheck from FTX and clout and no regulator. Easy to look away. Oh my gosh. so what's happening now? let's let's talk. Well folks, it's happening. Not only is FTX going bankrupt, but now the leftover money is being hacked and stolen away in this video I Want to talk about how that could be happening? Okay, so let's first do a very quick recap. We know that Binance suggests that they were going to dump the finance token last weekend ftt because of some abnormalities they were seeing. Then FTX and their FTX token plummeted in value and because FTX was letting individuals borrow using the Ftt token as collateral. You had this death spiral of margin calls of customers who were getting margin called because the Ftt token was plummeting and the more people were getting margin calls, the lower the crypto Market was going and the more the Ftt token was dropped even lower. And so the more you had a death spiral of one dropping lower leading to margin calls here. but then the collateral dropping in value leading to more marginal calls. Over here, everything just a complete disaster and that led to a bank run on FTX where individuals were possibly in the normal course of business trying to withdraw their money. we're getting delayed on their withdrawals and then all of a sudden Ftx.com seized up with withdrawals. Now when this occurred, I made videos and I posted tweets like crazy saying get out of FTX Us I used to be sponsored by FTX Us, which is different from Ftx.com but those companies have common ownership so we can't kid ourselves. You are going to see the same freeze-ups as at Ftx.com at Ftxus and folks, after five days of me warning, get Out! FTX Us filed for bankruptcy late on Friday with the Bahamas seizing whatever assets they can because this company is based out of the Bahamas rumors circulating that Sam Bankman freed either has an arrest warrant out for him or that he's been arrested at an airport. These are unconfirmed rumors at this point, but there are rumors that are circulating: The SEC is investigating for fraud. Janet Yellen Janet Yellen is talking about how this is why we need regulation for cryptocurrencies. Uh, people are trending on Twitter fire Gary Gensler for failing to regulate sooner for taking too long to actually make sure people were safe at these companies. and I feel terrible about it too. and I am completely sorry for not realizing the failure that these companies would go under. I've always thought the stable coin yields were pretty wild and I've warned against those. but I thought, boy, don't invest then in the stable coin. Invest in the seller of the pickaxes, right? And rather than selling trying to go find gold, just invest in the pickaxe seller. Yeah, well, the Pickaxella went bankrupt real bad and it sucks. I lost a lot of money I had invested in companies like this that I sponsored was sponsored by as well and I lost way more money with my investment in those companies and I ever got paid in sponsorships I Specifically for example, in Block if I invested four hundred twenty thousand dollars, that's all gone. Yeah, anyway, so what's happening now with these hacks and how are they getting away with this? And for those of individuals who are wondering, does me saying I lost money and being sorry about having lost money somehow make up for having pitched these companies? No. And I'm sorry for that. That doesn't cover that failure I Just want to make that very clear: I don't think anybody saw this coming, but I'm sure some people did because well, there were some people who are just really anti-other crypto exchanges so there's some competitive Advantage But boy oh boy, this is turned into a disaster. So how is this hack now breaking down? Well, let's take a look at how this could happen because right now we've got about 662 million dollars that potentially has been hacked out of FTX. There are some estimates that that's uh, 475 million. A different firm that's tracking, uh, analytics on chain analytics is seeing this. But how can companies get away with stealing this sort of money? And then Vanishing I mean isn't the bad benefit of blockchain technology that you have transparency? Well, yes and no. see, blockchain technology enables transparent transacting. But what it doesn't enable is knowing exactly whom is conducting those transactions And that's the problem. See, you could. for example, if you were an employee at FTX or maybe you're Sam Bankman freed who's you know in the past allegedly uh based on other rumors co-mingled funds between FTX and Alameda his his investing company. Just so you know quickly how that would work and then I'll show you how these potential hacks could work FTX could potentially lend Alameda which is Sam Beckman's Freed investment fund money and so you you give a loan. So basically Alameda says okay, I owe you money back and we're taking the loan over here. This is very commonly done between business says all the time, But when it becomes questionable is when you have common ownership and what are the terms of that loan? What if Alameda doesn't pay it back? What if Alameda takes a billion dollar loan from FTX reserves, then Alameda goes bankrupt. Now, all of a sudden, there aren't enough reserves so that IOU is worthless. and then when there's a bank run on FTX FTX goes bankrupt after Alameda's already gone bankrupt. Well, that could be exactly what's happened. and this is actually just like really really poor management and borderline unethical. Actually, I would just straight up call uh, you know, call a duck a duck, right? Uh, it's unethical and fraud. so it's It's really, really bad, especially since you're using customer funds potentially to do this sort of stuff. Now, we're still waiting to get more information on exactly all the things and how they're breaking down, but this is what it looks like. So how do you in the transparent ecosystem of blockchain? Technology Still real money If if all transactions are so transparent, Well, let's say you're an employee at FTX So you're over here at FTX and you're like wow, we're going bankrupt. Okay, we have the FTX wallet. Nobody knows who actually has control the private keys for those wallets. Because for crypto for cryptography, you need a private key to to essentially unlock a wallet to be able to transact with that wallet so you can decode the hash. The cryptography could be a topic for a totally different video, but anyway, with the private key which this is why we have public transactions, we could see all this without anybody actually having your private key with the private key. You can do whatever you want with the wallet. So let's say FTX over here has 662 million dollars in in cash left. Now they technically owe people potentially six to eight billion dollars and the employees who are left at FTX and I'm not trying to slander or shade them. they could be somebody else. Okay, maybe maybe somebody broke into FTX Maybe this is somebody you know in the Bahamas or somebody who flew to the Bahamas and was like I'm gonna go steal that stuff and so they find the private key taped to the bottom of a desk. Whoever it is doesn't really matter. We probably will never know. How can they get this money out of here So they might say okay, well FTX is bankrupt because we're not going to pay six to eight billion dollars and nobody wants to bail us out. Sure there are companies like Tron that are like oh yeah we're talking about maybe a multi-billion dollar bailout but it's all subject to to to due diligence. And really I think some sometimes when you get these talks about oh yeah Tron's going to come in and bail out FTX I Really think What? sometimes these CEOs like even the Binance CEO whom I think is kind of a shady character you can watch my video on why I think that, uh, just type in meet Kevin Binance and it's one of my videos from last week. But yeah, there's like a whole 15-minute explanation about why I think he's Shady So if you're like new, Cheesy is the good one. he's one of the Ogs. If if you think that, then at least at least get my perspective in that video. But anyway, so so uh, you know why would companies temporarily maybe want to prop these things up by saying oh yeah, we'll we'll just uh, we'll buy them subject to due diligence. Well, you provide temporary stability in the market. and maybe as you provide that temporary stability in the market, you're secretly like dumping certain crypto, you're secretly trying to elevate your reserves. and then you're like yeah, just kidding I don't actually want you. it's giving you it spot you a little bit more time. So I when I hear companies like Tron saying they're going to buy FTX I think FTX is so far underwater they would be moronic to do so just like I think it would be moronic of Binance to do so. And then they did end up indeed pulling out. Uh so I just want you to be aware of that like you can. you can join joink there's a new word uh, this market and really screw with people. But anyway, so let's say you've got the 662 million dollars sitting in in you know, the crypto wallet for FTX and you're like, well, crap, the bank company's going bankrupt. Anyway, you're a bad person. You're like, you know, I'm just gonna steal this and live a great life and I'll share it with like one other employee or something like that, right? Well, we're gonna go live in in the Cayman Islands Let's go from Bahamas that okay mng, tough life. Anyway, so you take the 62 million dollars and what you do is you put it into the Vortex of usually an Erc20 or the Ethereum network and uh, there used to be this thing called a tornado cache but uh, which? But Tornado Cash got shut down. But there are so many alternatives to Tornado Cash. I'll give you a brief explanation, but just an example. there's uni join. uh, there's coinomize Min BTC ZK Money Zero X Monero Cyclone Protocol Mr87 spinner. They're all basically Tornado cash. Alternatives Now Tornado Cash got like globally shut down because it was just totally money laundering and everything and all of these other features are probably doing that as well. and you shouldn't use these because these are probably going to get you in a lot of trouble. But if you're a criminal, what could you do? So what you do is you take your 662 million dollars and you dump it into Tornado Cash or these other platforms. When you dump it into this, what you have is a giant Vortex of thousands to potentially millions of transactions going in. So you'll see. Okay, a 662 million dollar transaction is going into this tornado. But then on the other side, what you'll find is you'll find. maybe if one million transactions came in, maybe you'll find 20 million transactions coming out and the 20 million transactions coming out here we'll use. We'll use a small blue pen to signify coming out. The 20 million transactions coming out are all 1 000 or let's just call it because Ethereum is almost a thousand dollars. Let's call it one Eth transactions and some of these are legitimate, some of them are bad. but what you do is you basically take money out of the tornado in little one Ethereum increments. So what you do is you just repeat this withdrawal process 662 000 times and all of a sudden one Ethereum is coming out 662 000 times. But it's not just that, it's combined with all the other single Ethereum withdrawals people are taking out. so you could be taking out 662 a thousand transactions of one Ethereum. Which think about it every time you do a transaction. It's like getting one Ethereum. like a thousand bucks I mean worth the time. You could sit there all day long and do that right and you spread that out into like maybe 200 different wallets of yours. So You go into that platform, you're like, hey, you know what? Take uh, uh, 10 Ethereum transactions at one Ethereum each. put them into this wallet, Put 10 into this, 10 into this, 10 into this, and you have control of all of those little micro wallets. There's no way anybody's ever going to be able to track down where that 662 million went because it's all coming out as one Ethereum transactions and your goal is to just use the most popular one that exists. So there are, instead of just 662 000 one Ethereum transactions coming out, there are maybe a hundred million transactions coming out with one Eth. People doing this over and over and over and over again. And so now you've effectively taken one wallet with a lot of money and potentially turned it into hundreds. Uh, If not, you know hundreds of thousands of wallets that you'd have to track down and somehow connect a bad actor to. That's really, really difficult. Now you might be wondering, Well, how do you know how many times you could go to that tornado and take a thousand out? Well, when you put money in, you basically get little coupon codes like the sixty percent off coupon code linked down below for the programs on actually building your wealth with zero to millionaire real estate investing that's gonna be huge for 2023. New lectures coming out soon Sierra You know, stocks and Psychology money. New lectures coming out in December for that on fundamental analysis. we're going really deep baby. Uh, and the new course, the Elite Hustlers University Course these are Great Courses Check them out down below. uh, that expires obviously the Black Friday coupon code so expiring soon. but uh, you know you. Basically, you deposit your money and for every transaction you deposit, you get some form of coupon that you then use to redeem a certain amount of Ethereum from the Tornado. So let's say you get 662 000 coupons and then you go stand at the other side of the tornado and you're like cool. I'm going to redeem 10 here. Send it to that wallet. Okay, I'm going to redeem 10 here. Send it to that wallet. Okay, I'm gonna redeem a thousand here. Send it to that wallet. All that money disappears and that money could be your deposited money in either FTX Us or Ftx.com It's terrible. It's so bad it's It's so absolutely bad that this money can get stolen and the person who steals it or people who steal it might never end up getting discovered. So again, even though blockchain's transparent, it's not transparent enough for us to actually know who's doing bad stuff. We just know that somebody is doing bad stuff and this whole idea that, oh, but you know they've got licenses to sell crypto in the United States The whole licensing process for crypto doesn't mean they're actually heavily regulated. They're barely regulated. And as I said at the beginning of the video, they were audited by a Metaverse CPA firm. You can't make this stuff up.