brown with everybody. i'm rick sanchez. you know, i've been doing news for some 30 years in 2 different languages all over the world . and obviously here in the united states and i've interviewed for us presidents mikhail gorbachev and fidel castro and started afford $1000000000.00 business. so i have learned from all of those experience that if nothing else, we need to be honest, news should be honest, it should be direct, it should be impactful. this show we do it and it's called direct impact. ah,

i want to start with this. there's something that to few people are talking about in the establishment elite. in fact, what they are talking about is the complete opposite of what they should be talking about. yeah, i'm talking crypto because it seems a whole world continues to talk crypto. so what they say is that this fella, sam, bank, men fried, is an example of something that was caused by the crypto currency revolution, right? they say the whole block chain, crypto movement now has to be changed. it has to be regulated, has to be controlled. they say crypto needs to operate more in line with how, for example, banks operate and other equity and financial institutions operate. and by the way, to all 3 of those assertions, most if not many or many, if not most in the non establishment community would say no, no, and held though. are they right? are they right?

let's look at this. by examining sam bank men freed himself for as his buddies in the media establishment and politics. mostly democrats, by the way, call him s b f. s b a for the record. i'm gonna share something with you personal here. now, when, when someone has been found to have committed despicable acts, my rule is simple. you don't call that guy by his initials, you know, just like i would never call james or a rental james simpson o j. i don't think it's good idea to call this guy sam, bank mon fried s p f. seems almost unbecoming like were pals or something, right? which, by the way, to a certain extent, there's some truth to that. it was a policy while you go on a situation going on between s b, f, the media, certain pull, politicians. what, what i will call him by the way,

someone who appears to have stolen the life savings of his depositors by investing it without their permission. right? not, not hello, you've got to tell them if you're going to do this. he didn't mean, why was he depositing it in the 1st place? that's a great question that we're going to try and figure out as we talk to people who, who say they were actually swindled by him. by now you probably have already heard of bank been freed. but in case you don't know his story, let me just give you a little bit of a primer. ok will try and now put some pictures up so you can see what we're talking about, which are in and of themselves. somewhat ot beckman fried is a 30 year old founder of f t x, as well as the crypto trading firm, alameda research that's important. f t x collapses, and then it's revealed that its value was all but gone. and much of it had been pumped into alameda research,

even though the clients who bought f t x had no idea that alameda was even in play in this case, to what they believe in f t x. well, that's interesting too. famous celebrities vouch for it. i mean, they went on television, they did television, commercial sports teams, used f t x on their stadiums. the arena's like the one that the miami he was playing and the company has now filed for bankruptcy, has f t x. but in the process of building the company that most call, a scam bank, min fried, made $26.00, some argue as much as $36000000000.00 that a report seemed to indicate that bagman freed has no material wealth, but before his wealth disappeared, banquet fried was a major donor to us politicians with a special emphasis by the way on president button and the democratic party for what it's worth. fact, he was the 2nd largest individual donor to president biden's campaign itself,

personally donating $5200000.00 on top of the other $40000000.00 he donated to other democratic candidates during the midterms. free who is now under serious legal hot water, has been doing a series of interviews without even his attorney present. interesting it, interestingly enough and looking much like he did in the past. what were the shult? a lot of people look at you and see for he made off. yeah, i mean, i don't think that's who i am at all at all, but i understand why they're saying that people lost money and people lost a lot of money. and i mean, at the end of the day, well, there's a question of what happened and why, and who did what on what caused the, the meltdown. and i think that is reads very differently, right? when, when you looked the classic bernie made off, story,

there is no real business there. the whole thing, i, as i understand it, i think was, was just 11 big ponzi scheme rate. s. yes. that was a real business. joining us now to talk about us is our president and co founder of our approaching capital. aah! david. tell ferentz david for a for joining us. man, there's so much to talk about. first of all what, what, what do you make of the sky? ah, sam beckman for you to read his buddies in the media column s b us it's if there was a hearing, i'll start with this. there was a hearing the other day in front of the house financial services committee by the chief restructuring officer for f t. x. was the witness at that hearing. and he just said it was plain old embezzlement. good old fashion, embezzlement. and that's really what it was. you know, the, the structure is,

i think, not so important. what is important is the fact that the entity within which depositors customers investors were putting their money was entirely ok. there was no production of documentation. there was no updated financial statement sent out there was no audit and. ready so therefore, there was nothing that the customers or the investors or the depositors could go on except for the word of san banks and free. and so, you know, like a snowball. there were a lot of prominent folks and institutions back this. and so therefore, on the basis of the prominence of those at these institutions, lots of other folks followed in i hear what you're saying. here's, here's what i think happens in cases like this with, with, with bank been freed. it seems to me and most of the people who are much more into

crypto than i will tell me what fascinates them about crypto. the the reason for being and crypto is because they want to separate themselves from lending institutions, banking institutions, hell establishment institutions in general. and they also don't want to feel like they're tied to the government who can at any time, know exactly what they're doing and know how much money they have and what they're doing. you know, let's face it, some people are doing this because, you know, they, they'd like to pay fewer taxes and that's a part of the game as well. so essentially, what bank my friend was doing was the opposite of that. i mean, he had an exchange, right, an exchange that in essence was acting like a bank and he took people's money deposits and then spent it without them knowing that he was doing so. in fact, what he did was worse than what a bank does. ok, so let's, let's back up a little bit and unpack it a little bit further. ok,

so the exchange was actually a place where investors could go ahead and invest in futures contracts ok on the basis of crypto currencies. so f d x was for facilitating investments on both sides of trades for futures values in crypto currency, very script the currency for bitcoin all the way to the more you know, all a dodgy ones and don't quite ok. and so in order to go ahead and back those futures investments, you would have to go ahead and put up collateral ok, you'd have to put up either cash or you'd have to put up the actual crypto currencies. and so that's what people would go ahead and do so. so let's pause and say that f p x was not just a custodian. it wasn't a place where you parked your quick though, although you did that as

a function of the best thing. but the primary reason you would go ahead and. ready involved with f t x is because you want to use f t x services in order to be able to go ahead and invest. now. the s t t coin is actually, it makes a lot of sense. it's according that represents access to the f t x platform. and so therefore, the more f t t coin you own, the cheaper the services that you're going to pay for. or i'm sorry, the cheaper price you're going to pay for the services on the f t x platform in order to go ahead and trade. now, here's where it gets back. what happened was alameda, which is also owned by sam bank and fried which is a hedge fund or an investor on the f t x platform had no constraints around what it could do. and frankly,

what type of collateral role or posting requirements it had with respect to which investment. so if you are, i were trading on f t x and we added a trade that was particularly bad. the exchange would immediately liquidate whatever it is that we had on the exchange in order to satisfy the call on the value that we had. loss. ok, so would have put s t x in jeopardy. however, alameda, which was the largest counter party to f, t x had no such constraints. alameda put on a lot of bad trades, lost a lot of money. and in turn caused f p x to lose a lot of money. and that's where everything broke down. now also you had mentioned this, but let me highlight it. alameda to alameda actually took money out of or value directly out of f t x and put it into its own fund. right. that's straight upset,

right? you put it here. you put my bank, i'm and take it home and you know, buy, buy a car with it that you can to do. here's the thing that concerns me and i don't know how you feel about this, but it would seem to me that what he has done is almost opened a path for all those people who've been and de crypto ante block chain forever to now come in and say how see, because of what that guy did. now we're going to go in and we're going to control these things and we're going to overregulated, etc. is that a concern? do you have that concern? oh, sure. i mean, a blow up like list goes ahead and emboldened naysayers. you know, that were hanging around and, you know, when bitcoin was at 60000, you didn't hear those voices so loudly. but now, you know, after all this and bitcoin is now 16000, you know, certainly that chorus, you know,

is quite loud. but you know, there is a much more, you know, philosophical and existential conversation to have year. which is crypto currency is really supposed to be a decentralizing function. it's supposed to take things out of the hands of humans and put it into the hands of immutable ledgers that are total transparency you know, and every, nobody can. busy go ahead and crack, and by the way, no codes and no block change have been cracked through all this. this is all been, you know, the undoing of the unit. thanks so much david. stay right there though, because i want to come back to you. i want to continue this conversation by the way, i have a podcast to share with you where i as a journalist, as a latino and as a co founder of this company that i've told you about share a lot of the things that i've learned mostly from all my screw ups and some of my successes, it's about growth. it's called the rick sanchez podcast. i invite you to check it

out and i'll see you there. but when we come back, let's stay with free. let's talk about the embankment fried. the best thing is he, the best thing that's ever happened to the enemies of crypto currency, and is it possible that they're gonna end up with the outcome? they always wanna stay with ah, ah, ah ah

. mm. so what we've got to do is identify the threats that we have. it's crazy even foundation, let it be an arms race is on offense. very dramatic development. only personally and getting to disease. i don't see how that strategy will be successful, very critical time time to sit down and talk l look forward to talking to you all. that technology should work for people. a robot must obey the orders given by human beings, except where such order that conflict with the 1st law show your identification. we should be very careful about artificial intelligence. at that point, obviously is to place trust,

rather than fear i would like to take on various job with artificial intelligence. real somebody with for robot must protect its own existence with a with pay water back. i'm rick sanchez. so here's the thing about this whole ugly scenario with sam bagman free. it may end up causing legitimate crypto establishments to pay for what he apparently did. remember crypto supposed to be

a movement away from government and big, big bank control. as we mentioned, the essence of crypto is to create a system where people can move trade and even use their currency without the government being able to keep tabs on taxing it unnecessarily or telling you what you can do or what you can't do with your own assets, but if you take even a casual look at what sam bank mom freed was doing, you'll see that it was not in line with any of that. in fact, he was in fact acting as, as a bank, right? except is, was worse because he was in essence exploiting the deposits of his clients. it now seems plain there's something else about crypto currency in its raw form that we all need to recognize, especially as americans it is probably not good for the u. s. dollar. our banks and our governments want nothing more than for all countries in financial institutions

. wouldn't you write to use the dollar exclusively as they so long have would the crypto movement and more to the point, the block chain movement somehow change that order. so you know what, it makes me wonder and let, let me bring you back into this. if i can, david, it makes me want to her. pardon me for being conspiratorial whether maybe well let me 1st put it this way. do you believe that sand bagman fried will be or what he did will be the best thing that could have happened to all of these people who want to do away with crypto and, and blace? correct. and i think to be honest with you, when it comes to exchange is going forward. i think we're out of point in the development of crypto, where the hardware needs to catch up with the software. what i mean by that is,

people don't like this idea of i have to remember, you know, a crazy set of words. you know, or keep my big coin or crypto safe on a thumb drive. and if i lose it, i lose all my money forever. they don't like that concept and they want to give it over to somebody else that they think is more trustworthy. that the hardware community is now going to come up with hardware solutions, which are going to allow you with comfort to keep your assets. so you don't have to hand it over to an exchange to hold. and there will be ways where whether it be retina scans or thumbprints or i don't know what that are going to go ahead and make sure that you can keep your valuable crypto. busy to yourself, without entrusting it to another human and allow for this crypto currency revolution to move forward. now let me ask you the next one, and here's where i'm going to get a little conspiratorial. given that he was so tied to the media and we know that

the media has interlocking connections with lot of big financial institutions. given that he was associated with a lot of politicians, in this case, the democratic party. do you think it's beyond the realm of possibilities that somehow there was some kind of collusion here that may be someone's somewhere thought of this plan? i know we'll get this guy to go in there and screw with a lot of people's funds and assets and crypto exchange. in that way, forever more people will be afraid of crypto exchanges and therefore out with the crypto exchange back to the dollar. what do you think? when someone's giving you money, you don't usually ask too many questions. but the other thing is, you know, with all schemes like this, you know, as the money is coming in, you can easily go ahead and sleep a lot of things under the rub, right?

you can kind of, you know, kind of plaster over a bunch of holes that exist in the system and, and let me make a very important point, which is there is clearly a failure here in terms of legality and regulation. ok. i don't care who individually gets pointed a finger at but collectively our lawmakers in congress, our regulators throughout the various regulatory agencies such as the fcc, the c, f, t c, the department of treasury and so forth. those folks collectively need to go ahead and take responsibility for some of this. because 1st of all, we know, by the way, it's been reported that the bank refrain was a big donator to a lot of politicians. right. who were helping him and his crusade to go ahead and enshrine f t x as the greatest or the most important and largest exchange and you

know, blessed by the us government. and so a, they took money from in but be they did nothing, nothing, not the law makers, not the regulators to make sure that there needed to be transparency and then use the proper notice and updating to investors to deposit or to customers. and unfortunately, this would have been undone a lot earlier on in the process if they had to do those things and they did it. that's great stuff, david, thank you so much, president and co founder of pro chain capital. david pal, thanks so much for being with with us david. so i want to share with you what we try and do here. our mission. our goal is to try and de silo the world because troops don't live in little ne boxes are everywhere. number sanchez, are we looking for you again right here where i hope to provide directive?

oh no, with the yep. let me see. i think mike, if i mean should but so i should. why did you pick it up? studies? pointy, ethnic. i get on with it. or i'm giving it away. yeah. for sure. i do the work nice or yeah, it was a shed. so when you leave a continuous way, certainly coaching. yep. and to put on the words and jim i put in your to the to

the with the invoice. so why so completely booked the annuals? now you don't need to, to school at all for them or just a buddhist another on your smithies. what are you on the when come up to show that it wasn't, it was what was the, what was it? so please let me have somebody here because he's a freshman was just so sure, and each of them rich a lot. but when i ship, not the post office, that he, he has all the way to to see, make sure with with

oh me, one main thing is important for knox ism internationally speaking, that is, that nation's allowed to do anything, all the mazda races, and then you have the minor nations who are the slaves. americans, proc obama and others have had a concept of american exceptionalism. international law exist as long as it serves american interest. if it doesn't, it doesn't exist by turning those russians into this dangerous bogeyman that wants to take over the world. that was a conscious strategy and walked out of it on your own. i know she

leashed often. zebulon and tablet block. nato said it's ours. we move east. the reason us, hey jim, it is so dangerous, is it? the law is the sovereignty of all the countries. the exceptionalism that america uses and its international war planning is one of the greatest threats to the populations of different nations. if nato, what is bad shareholders in the united states and elsewhere in large obs companies would lose millions and millions wars business and businesses? good. and that is the reality of what we're facing, which is fashion. with that already waiting for vitaly at the prom civic center, he's been warned. he'll stay in tennis for at least 2 weeks. that came

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