binance is carrying out a swap one crypto for another without use of fee it could be a way for binance to shore up the u.s. debt it has. the chairman and ceo says there has been an increase of the withdrawals of the u.s. debt when it is trying to convert stable coin into usdc, it goes through the bank in new york which is not yet open. there is no reason p at the moment why this is an increase in withdraws of usdc it is never a good sign w withdrawals. there are a number of questions raised over the reports released a couple of weeks ago. b binance can back what it has w w withdrawals. it doesn't have enough information to give investors confidence particularly after the ftx collapse and some of the other collapses we have seen across the industry over the past few months that is one big concern at the moment the second is the report from yesterday claiming the debt department of justice with the criminal investigation over money laundering violations as well we don't know if that is true yet. binance hasn't come out with the statement about that and the department of justice hasn't co

binance didn't make sbf embezzle money. didn't insin rate all of the accounting trails from where the money went in terms of alameda research i'm wondering if you think you're laying a little too much blame at binance's foot as opposed to say sbf ran this operation that was completely a mirage >> no, that's not what i was asked today. that's not why the hearing was put together it was designed to explore the reasons for the demise of ftx. there's lots of accounting is issues, lots of investigations, lots of litigationment let's talk about where the money went. this is a pretty simple situation. way back on the saturday when -- the friday after -- i'll give you a date here, looking at my notes here saturday, november 12th. i noticed that our corporate accounts -- yes, i'm an investor there was nothing there. not only were there no assets. there were no records. there was nothing. it had been stripped clean i decided, i know the management of this company. i'm going to make some phone calls, did it get hacked, go to the behem

people can withdraw 100% of assets they have on binance. assets, we'll be fine this is very different for traditional finance people to understand because banks run on fractional reserves and the traditional regulators, many of them may think it's okay for crypto businesses to be running on fractional reserves that is not okay in crypto, there's no central bank printing money when there's a liquidy crunch crypto assets have to hold them one to one that's what we do. >> let me ask you about that specifically indulge me for a moment. when you had what seemed to be liquidity issues around customers wanting usdc, it looks -- it looked at least from this vantage point that what was happening here could have been avoided if, and tell me if i'm wrong about this, you allowed customers to deposit and hold usdc insaid of what it looked like you auto converted them into your own exchange dollar. am i wrong >> there's minor corrections so number one, we do the auto conversion to eusd, which is not issued by us, which is not the exchange dollar. it's ac

we continue to watch the latest developments on binance.can you tell us about worrisome issues raised over the binance platform this week? more specifically, what binance has been saying over the last 24 hours or so. sonali: so many executives across the industry, including at binance, are addressing the issue crypto likes to call fud, fear, uncertainty, and it out. you saw a spate of withdrawals earlier this weekend a little stabilization since then. you saw the binance ceo yesterday addressing how much that amounted to. he said about 2% of the platform that experienced that kind of strain. that is, of course, not a lot. it's a large platform. another shorey -- story shows you not just binance's pain but what the industry itself is feeling in risk appetite. this story on the boat -- bloomberg terminal explains the trading of bid going contract, perpetual futures where traders were able to take on leveraged bets. that declined significantly. binance has about 60% of the derivatives market here, more significant since the fall of ftx. when y

why there's a rush on funds. >> there's been reported news about looking into binance's business from u.s. authorities and so generally the concern in the market and people are taking the cautious route of with drawing from exchanges. >>> european equities retreat after they wave off the decision coming this evening. >>> and the full impact of embargoes on russian crude remains to be felt, and a price rally cannot be ruled out. >>> welcome to the show, everybody. well, sam bankman-fried has been charged with fraud, conspiracy to commit fraud, money laundering, and violating campaign finance laws. the ftx founder's considered a flight risk and was denied bail by a bahamas court he will remain in jail there until an extra diction hearing in february. prosecutors describe the case as one of the big oeft financial frauds in american history bankman-fried was arrested by bahamas police on monday and appeared in courts on tuesday. >>> meanwhile the new court-appointed ceo of ftx tells the u.s. house committee that ftx's collapse was the worst business failure was the worst he's ever seen. >

talk with us around binance at the moment. there are concerns about the clarity we get from talking about stabilization and outflows. he is trying to dispel concerns that have been building around the company. and they've got vast quantities of money sitting. the market is huge for them and that outflow is little compared to the 60 billion at least they have in reserve but are you worried about binance? john: yes they are a massive major player in the space. but you have to give them some credit. they self-induced reserves and started creating transparency scale. given the ftx situation, participants want even more transparency. hopefully we get there. that is one of the reasons why we saw a company called nansen reported close to $3 billion in the last day or so from -- withdraws from binance. but the asset class increased even with the withdrawal. so that tells me a lot of the stock moved away from binance into what i consider a healthy operational risk management tactic. caroline: what is it like in the ecosystem right now?

do you think that's real >> depends on what binance's position is. >> the binance token. >> which isupporting binance. >> is it zimbabwe, $17 million? that's like $4 million, maybe less just conjecture at this point. he's not coming here any time soon we could invite him on the set do you think he would confer, decline? >> we should talk to him about it. >> ask him. >>> when we come back, it's fed day. steve liesman is going to tell you. >>> later we'll hear from author and economist judy shelton you're watching "squawk box," and this is cnbc >> announcer: this cnbc program is sponsored by charles swab own your tomorrow. charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that. he was proud of the price he was charging. ♪♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah. ♪♪ good until it's back the fact stocks are trading the way they are is really disappointing. i think there are concerns about

binance is the one to watch and reserves a huge question here. people want to see if you are an exchange that you've got the money one to one to back it up and record outflows. y any of these exchanges seen it at a record people looking to take their cryptocurrency store it off-line and have it in a place they feel they have control regardless what happens to one of these exchanges. >> even proof of reserves isn't exactly a totally transparent either a snapshot at one point in time and doesn't tell you if the reserves are levered the problem ftx got into it helps but doesn't tell the whole story? >> worries about cherry picking. showing a certain snapshot of the balance sheet and an issue comes down to trust. eroded with what happened to ftx. even proof of reserves, the idea that you wouldn't have a big four audit irlooking at this, seems needs to be more done with whether stablecoins or binance, holding those one to one not in liquid assets and spot-on. even if you show something technically proof of reserve, there are always going forward going

later, binance tried to connect the narrative, and two wall street firms with opposite tacks on crypto. >> take a look at the nasdaq, down 1.5% today. weaker start this week let's start with the divergence in small cap tech versus the mega caps. >> pretty familiar story it was the once most embraced stocks down. the nasdaq 1 wn for example did not establish itself as a leadership group this is the s&p tech sector, the nazdic 100, as well as small cap tech this tracks the smaller cap universe it's outperformed nicely on a one-year basis it's essentially not really had the valuations issues some of the larger stocks did. it's very hardware centric, a lot of semis, a lot of electrical equipment maybe more adjacent to industrials and less in the way of big internet and social media stocks that's been a solid trend for a while now. on the mega cap side, you're talking in depth about salesforce look at salesforce relative to amazon that's down a lot more than the nasdaq is in particular. amazon has traded a lot more like a cloud stock in the last year, year and a half, than it has an e-comme

to me, we have to say ftx is different than binance. has kermit -- allegations of fraud but i don't hear that frombinance but they say finally it's a primal scream for accounting transparency. how does gary gensler do that? are they domiciled in dubai? jonathan: i'm sure that will be part of the conversation. tom: binance is join norma's compared to ftx -- is ginormous compared to ftx. can we talk about argentina? the streets were absolutely packed. that performance yesterday was just phenomenal. tom: is his career at an end? jonathan: i thought it was and then the 35-year-old has rolled back the years. big time. from new york city, this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smar

of course there is binance u.s. but the issue you were talking about earlier in the show, outflows to the tune of $4 billion in a week. i thought the analysis of this was interesting. this is a small percentage of total assets but shows the customer fears around holding money in an exchange, especially as industry gets more concentrated, plus the issue with stablecoin withdrawals to keep an eye on as industry faces pressure to what happens with the stablecoin industry. ed: whenever you have a congressional committee hearing like this, you get testimony from those called as witnesses but you also get this broad range of opinion from those committee members that pose questions. do we get any sense of what the committee members want to happen next? what happens next based on what was discussed in that room? >> one thing actually and no shocker here is when there is frustration the committee often it is backward looking. there were a lot of questions about what happened and how this had happened. there was also a fair b

especially binance. it's time now for some of our top calls. a look at big movers on the back of analyst e caroline: you have to be focused on the cpi print coming in cooler than expected. we are up more than 3% on the nasdaq. people could put forward what the fed will do with this data. the s&p 500 is up .7%. we see the yield pulled back down 16 basis points as we see a lower terminal rate with interest rates in the u.s. hitting off of 5%. let's look at what happens in terms of the u.s. dollar. that is trending lower. and it coin having a push higher. there is a lot of movement between tech stocks going higher and bitcoin. the correlation is clear to see they are up almost 4% on bitcoin for bidet. ed: that being a driver of the technology stocks. and the market itself. moderna up 20%. amid stage -- a mid-stage clinical study showed that there was an effective fight against the cancer melanoma. an apple up .7%. a bloomberg scoop that it is considering downloads on the iphone and ipad outside of the app store. one stock that reacted was spotify

zschau of binance h why is he a problematic ceo in your view?s he had something to do with taking down a major competitor, that c.j., maybe single-handedly, although tried to present himself as heroic, he surely had a crashing influence on, of, on ftx, and rather than celebrate that he's got his own problems policymakers are very skeptical of him a lack of transparency may, in fact, have suffered comparable loss of trust there and has yet to produce the public has gotten weary of a lot of ambiguities, jargon and crypto confidence, and i think that given his exposure, that's all he has there he's got big trouble a lot of accountability problems coming after him an unenviable tank. >> thank you, as always, for insights and for this provocative list appreciate it. have a great holiday season. see you next year. >> thank you >>> i want to draw viewers' attention the dow is now down 305 points we've got an eye on it so should you. >> trading heavy again at the close. >>> coming up, generation change look at one company trying to fix the problems caus

how much concern should be focused on binance?y being scrutinized by accountants or audited? >> no one has been audited as a public company would be. they put approve of reserves but that does not show liabilities, so people are jittery now. so people are looking at the other exchanges and feeling concerned. the outflows have calmed down, but everybody is looking at everyone at the moment. francine: the head of binance was trying to reassure. is there anything regulators can do to help? >> it would be good to know where they are headquartered to know who would regulate them. but it depends effectively where you have operations who would regulate you. but regulators are likely to clampdown more on everyone who remain standing. but having audits would be helpful for investors i would imagine. tom: anna on the latest when it comes to ftx and the read across to binance, our senior crypto editor there. now let's take a look at the events we are following today. i told the club p.m. u.k. time it is the bank of england -- 12:00 p.m. u.k.

tom: i moving on to binance.here is an important article about a department of justice divided about what to do with bianance. the idea of stablecoin was like a money market fund years ago. do you break the value of a stablecoin? jonathan: you mentioned the reuters story about the criminal charges over breaking money laundering charges? tom: and there is a debate within the the department of justice but things are getting sped up. jonathan: let's go to the price action -- equity futures are positive by 0.40% and cpi data will come in in a couple of hours. yields are a little lower on the bond market. a whole lot lower since the pop. tom: a correlation with real yield that's where it is, in version didn't too much, but equity markets moved and the move again on 0.4%. a smart note this morning and it's clear that service sector inflation will be tough to tackle. jonathan: maybe that will breathe life back into the inflation story. euro-dollar is basically unchanged. lisa: 8:30 a.m. is the key data point of the day.

and now binance, sort of bailing out voyager.ing, a better ending? >> my perspective is that the u.s.-based businesses that are compliant with u.s.-based securities rules, financial regulations, so it would be tough to say what that would look like outside the u. >> so are we closer to a bitcoin etf or further away? >> i think we're closer. >> would that help >> ftx is a failure of people, of process, of governance, it's not a failure of crypto. i think it's a really strong example of why products like dbtc, the world's largest bitcoin investment vehicle ought to be in an etf. they should have the shares trade on the national securities exchange, give investors more protection and these are things that investors should be doing. >> agree with what you said, there is an underlying issue with some of these coins, some of these coins that are thinly traded, and that this was something else ftx was doing, they were making loans to people and telling them they had to use some of the money to come back and buy their own stupid coins, a

elsewhere, binance ceo changpeng zhao admitted it could have $2.1 billion clawed back as a result of the ftx bankruptcy. cz said withdrawals at this time would not be impacted. >> people can withdrawal 100% assets from binance. we will not have an issue. 100% of assets withdrawn there is no bailout of banks with the liquidity crunch. that's what we do. it's very simple >> zhao fought back over the comments made by kevin o'leary that binance sought to put ftx out of business. calling yo'leary a liar >>> twitter suspended a number of accounts of journalist ws reporting on elon musk accusing them of his real-time location this move comes after musk threatened the account tracking his private jet. the account was banned on wednesday despite musk saying when he took over the social net network, this would not happen flight records are public information. >>> coming up on the show, we look at the case for emerging markets as higher interest rates from the fed pushes up the rates on dollar denominated debt all of that coming up after the break. we're told that success is all about making it

yesterday, the ceo of binance took shots at o'leary.hen we have imax movie coming up. we will have the latest on "av "avatar"'s premiere. stay tuned you are watching "squawk box" on cnbc charging something like a hundred bucks a window when other guys were charging four to five-hundred bucks. he just didn't wanna do that. he was proud of the price he was charging. ♪♪ my dad instilled in me, always put the people before the money. be proud of offering a good product at a fair price. i think he'd be extremely proud of me, yeah. ♪♪ >>> welcome back to "squawk box" on cnbc. we are watching treasury yields this morning the futures fall you see 10-year treasury below 3.5. very odd disconnect. maybe it makes more sense if we are headed into a slowdown the stocks leading the s&p lower in pre-market. wow. oil stocks lincoln national halliburton. >>> "avatar way of the water" guaranteed to lead the box office and take in $175 million. the budget to the original 2009 film was massive coming in at $250 million the director james cameron says the fi

and binance is far bigger.ut there have been some concerns here and there because they have had a lot of outflows recently and so that became a focus in the past couple of days. the ceo has sought to reassure everyone and say this is fine. he told staff in a memo recently but it was going to be a bumpy ride. this could be a tough time overall in the crypto universe. binance is saying they can handle whatever is coming with the volatility in the crypto world right now. dani: thank you very much, joanna. so much volatility whether it is in the space itself or just on the news flow. it is worth noting that in interviews since the collapse, bankman-fried has admitted major managerial missteps but of course that he never tried to commit fraud or break the law. opec slashed its oil demand outlook while urging vigilance and caution to its members. what is opec's new outlook? what is the justification for saying we are going to slice demand even further? >> their view really is that there is a slowdown in the economy t

binance, the world's largest cryptocurrency exchange, has suspended the withdrawal of funds for customersaccording to cnbc. this happened due to the fact that investors began to massively withdraw their capital from the exchange , panic is associated with an investigation against the management of binance, which the us attorney's office suspects of financial crimes. so the market could not but react. at the same time, the arrest of the founders of the collapsed ftx crypto exchanges became known today m bankman freed. his accomplices lost millions of dollars in their clients. why did we turn a blind eye to fraud for so long ? and with it, several billion dollars of clients evaporated. it was not possible to wait out the storm on the islands in their luxury apartments. fried has been preparing for online congressional hearings in recent days, in parallel with the talking interview, i collect a lot of documents to prepare for the congressional hearings . there are already 22 pages. many of these are likely to become part of my testimony. this is exactly the case when i will prepare more than

and that is binance. i have been following the binance story unfolding.dvantage of being in london where we don't even know where binance is domiciled. there is talk of cayman islands but who knows? should we be focusing on binance? anna: they are the biggest exchange by far. it's legitimate to start asking questions about binance not because there is something bad but because it is fair to ask questions. clients have started pulling money from exchanges because they are concerned of something happening like happened at ftx. it is perfectly legitimate for the public to look at them from an earning standing. tom: anna, thank you so much. lisa, i think this is a huge deal. we have to be so careful about the innuendo, the speculation, the rumors out there. i am intrigued by the adults out there in the zeitgeist are writing about binance as much if not more than ftx. lisa: especially because they acquired defunct crypto lender voyager. how much is this supposed to be a show of strength? that they could be a consolidator of market share or is this something el

intentionally now, maybe there is nothing wrong with that or nothing wrong with love and war, but binance is a massive, unregulated global monopoly now they put ftx out of business now, lots of other reasons, i'm sure, but that's my personal opinion. that is what sam bankman-fried told me in terms of where the assets went. >> our u.s. colleagues will speak exclusively binance ceo chengpeng zhou later today tune in for that at 14:30 central european time. >>> tesla shares slipping in pre-market trade after elon musk revealed he sold $3.5 billion of tesla shares for the second time in a week. that brings the total shares of $40 billion for the year this amid reports that twitter, which he paid $44 billion to acquire earlier this year has stopped paying rent for its office tesla is now down 55% on the year >>> the fed takes its foot off the pedal, but signals more rate hikes are on the horizon as we gear up for the bank of england and the ecb decisions today. we'll have an update when we come back. when we started our business we were paying an arm and a leg for postage. i remember setting u

. >> that's the big thing people are watching binance is by far the largest global exchange trying todence as part of the issue that even if there is no real issue with binance, which they said there isn't, to be clear, the ceo has come out publicly trying to get ahead of that the trust factor here is what people are worried about, the idea that any of these centralized exchanges could be a risk we heard sam bankman-fried before ftx went under say everything is fine people are really worried about ev every ceo in the industry. they put out proof of reserves last week that some have been questioning. it releases the snapshots. the bar is a lot higher from any of the crypto platforms to prove they're safe it's the right place for someone to store their money you've seen record withdraws from every crypto exchange, not just binance, even coinbase which is regulated and publicly-traded in the u.s investors in general looking to store their money in a much safer way because of what happened to ftx. >> definitely a hot stove dynamic. we'll talk soon. kate rooney in d.c let's talk about this

rishaad: cryptocurrency exchange, binance making headlines.en hit by large, outflows of late. the -- the company is mounting out of binance, $3.7 billion. a spokesperson said there working on publishing reserves, saying its capital structure is debt-free all in response to the outflows and assuring people that their user assets of the exchange are back. assurance binance after what we have seen, $3.7 billion of outflows. david: this was the point that the chair was making earlier. 60 minutes back when he said it was to improve reserves. one-to-one, hopefully that does back sentiments and shores of, and stops these flows. yvonne: he is trying to play himself as the white knight. then again they're dealing with wobbles, given what the ftx collapse has had led to. the latest. rishaad: on that, turn offering a second booster for the elderly people. yvonne: we have plenty more ahead. this is bloomberg. ♪ it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimit

there is i bought -- there is a binance percolation. it is a big take on the future of binance. out this morning on binance. a deal that is worth more than $1 billion. i was trying to do research. it was shocking to me. i was wondering whether the names were flipped when i read it. is this a show of strength? jonathan: my quick read -- it reminds me of something i read earlier this year. lisa: i know. jonathan: do you remember that one? people ran around calling it jp morgan, stuff like that? tom: approval of the court is necessary. that is always important in bankruptcy. bitcoin is sitting on their books in bankruptcy. i don't think they are buying assets. jonathan: since 1950 the s&p 500 has posted a total return of 13% on average over the 12 months following 13 major inflation peaks. it returns 13% on average following those 13 inflation peaks. tom: we have not talked enough about the optimisms out there. jp morgan calibrated where we are right now as 1.5% real growth. throw thata on with inflationn -- throw that on with an inflation statistic and it is buoyant. lisa: in 2022

meanwhile, binance downplays concerns after record bitcoin outflows. plus, loosening its grip. apple will allow rival app stores on its iphones to comply with new eu rules. sources say, getting shares rise. tom: futures are range bound. the backs down .2%. the focus will be on the fed and inflation seems to be coming down not a huge amount, but maybe we saw peak inflation. tom: recalibration by markets after big moves across fx, bonds and the equity space yesterday on the back of that 7.1 percent from 7.7% cpi the focus shifts to the commentary from jay powell. the market pricing a terminal rate of 5%. watching the commentary on the steer of rate hikes, the future essentially priced and by markets. the ftse currently down .3%. inflation moderating. the cac 40 in france down 17 points. in spain, the ibex down under a tentacle percent. oil is five and focus today on the back of opec+ downgrading its forecast of expectations of demand. we have the iea report out in under an hour. that will play into the commodity space. brent at $80 a barrel. a modest move lower but holding on to

thank you binance shows them everything >> right >> we'll continue to cover it.t the house in just a little while we mentioned that order from united of boeing planes of 787 dream liners >> not just a major order. the largest ever commercial airplane order in the u.s. history. put this into perspective for people i think there are orders and then there are orders. >> without a doubt thank you for being bold exactly at that moment in time you could be bold and should be bold i give all the credit in the world. this is a testimony to sort of the post max boeing in my opinion and the 87 in particular it could be okay if this 787 program leadership decided to hide in a corner when the max issues were as difficult as they were they didn't. they interrogated themselves they looked at everything across the board. they had to hit the pause button for the better part of a year, as frustrating as it was they have come out, got it recertified. >> you have said we will increase 787 down in charleston. it strengthens the backlog you go up to 5 and down to 10 a month. >> it is

binance appears to have stabilized.have seen slower than expected inflation data adding a boost. these are bits of the fed downshift. perhaps, using some funding liquidity issues might be at play here. >> the fallout from the ftx collapse. a handful of hedge funds are warning that the tether stablecoin could be the next crypto catastrophe. why are hedge funds interested in shorting tether? >> some hedge funds are short tether because they think that the reserves had their -- tether has backing it. it is supposed to be one dollar in, one dollar out value. the shorts were tell you that the reserves, they suspect, might not be as secure as tether says. really, they are worried about the opacity around tether and the fact it has not undergone an audit. there are many reasons for that that has or has put forward. it is unaudited and the third-largest cryptocurrency. it attracted a lot of attention for that reason. >> what are we hearing in terms of cases being built, criminal charges against sam bankman-fried? how does that

binance?organ stanley is letting people go right now. don't know the numbers, but they're letting people go. >> goldman made acquisitions rationalizing things they are trying to decide who has done great and it's not district 13, but there is a sense that goldman has -- >> that's a big number though. if that number were true, that's 8, 9% of the company's workforce. that's a high number. >> that number is not true that number is not true. it's probably -- that would be if they decided, you know what, we've really got to hunker down. that's not their target by any means. now how did it get to that number they're certainly not willing to say, yeah, it's probably going to be around 4,000 they think it's less than that. >> okay. >> but the fact is, layoffs? yes. if you remember back, david solomon, i interviewed him he said, listen, if things don't pick up, you know we have to change compensation. managers, by the way, they just get calling us so they're getting it. bonus doesn't look that good i

binance, which is the world's largest and only now crypto exchange in size, says it has quote temporarily paused withdrawals of the major stable coi coin, usdc, while it carries out a swap chengpeng zhao says the exchange is seeing an increase of withdrawal of the token usdc all of this comes as investors concerns grow as binance ability following the collapse of ftx which you might have heard about on networks such as our's just now and criminal investigation more as this story develops. more rumbling on the edges we will get more on the sam bankman-fried story through the day and hour here on cnbc. >>> right now, a lot of other stuff is going on. let's check on those headlines with silvana henao good morning, silvana. >> good morning, brian we have other headlines to cover. we start with covid zero rollbacks in asia. hong kong is cancelling the incoming travelers and now they b will be allowed to visit within the first three days of arrival. >>> twitter is disbanding the volunteer trust and safety council. this is days after three members of the group resigned over concerns around elon

still ahead, binance has slowed. we will get an update next.. ♪ haidi: we are getting the latest knowing oil domestic exports number out of singapore when it comes to the november reading, falling 9.2% a month on month, much worse than a decline of 2%. cpi electronics, falling 22.2% year on year. this tends to be a volatile series when it comes to pharmaceuticals and electronics demand. none oil exports on a year on your basis, 14.6 percent is the decline we are seeing, much worse than expectations of just a decline of 6.5%. we are seeing around the board -- across the board, i should say, a pretty major miss on expectations. exports to china down by over 30%, really eight -- illustrating the weakness in demand for china as well as how exposed the singapore economy is to external headwinds and demand we as we are seeing. and we will be taking a look at other elements of that, but certainly that demise when it comes to the china export side is really one that jumps out at the moment. shery: sort of a similar picture when we are seeing in japan,

last week he was indicted in a new york federal court on eight counts elsewhere in crypto, binance u.sorning agreeing to buy the assets of crroy voyager, ftx was supposed to bail it out, binance will pay just over $1 billion in that deal. guys. >> heading straight into 2023, the crypto story keeps on giving thank you. >>> is it time to take a second look at take two colin says yes we'll discuss. >>> later this morning that will be with the analyst behind the call, why he's betting big on the name in the new year don't go away. what should the future deliver? (music) progress... (music) ...innovation... (music) ...discovery? or simply stability... ...security... ...protection? you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit goldhub.com. >>> despite a rocky year for markets individual investors have been piling in. flooding mutual funds and etfs with more than $100 billion over the past 12 months, the third biggest inflow year since 2000, institutions headed in a different direction with their cash positions at head funds hitting their highest levels s

there are concerns right now about ftx contagion and whose next so one bright spot overnight was binancean seven of its next competitors combined, including ftx at its peak, and we spoke to cz earlier massive withdrawals at binance the past few days of close to $3 billion because of concerns over their proof of reserves, do they actually have the money in the bank for all that cryptocurrency that's bought and sold on the exchange. cz tweeting things seem to have stabilized. yesterday was not the highest withdrawals that we've processed , not even in the top five so people are less concerned now and probably keeping their money intact. stuart: we always mention elon musk. we always deal with tesla and we always deal with apple. what do you got on apple? >> yesterday you're talking about match group and i was surprised you knew what a dating app was but match group, bumble and spotify they are up over the past 24 hours because apple reportedly allowing outside apps to be installed on the iphone in the future so that means twitter and epic games and fortnite can get around that 30% app stor

maria: binance is investigating a hacking incident that affected a number of their crypto tokens.k the ftx collapse is affecting the broader industry? >> he'll well, it's certainly negative. i think it's good to set the stage that bitcoin has been the best performing asset of the past 13 years. if you look at it versus pre-pandemic, starting 2020 versus now bitcoin is up nearly 250%. compare that to the stock market. gold is up 15%. it's sad that it's down 70%. it was probably pushed higher by bad actors by sam but there's still a lot of value here. here i think binance is doing the best it can, is a true leader in the industry and even if they're trying to navigate unclear territory without proper regulations i think overall a very strong balance sheet and really doing what they can. gsr my company is part of their recovery fund, total of over $2 billion to help bring liquidity to good companies in the space that need some help. overall i think that most of the damage is done. if there's more selloffs from here it's through liquidations or pain in macro i think the long-term valu

there is a lot of scrutiny on both binance and cc.ing to see if the same thing could happen in a different exchange. people are scared right now. it will be interesting to see how binance works to build a vision of trust. caroline: tell us how they plan to do that? some of the publicly traded names are throwing up their hands in glee because regulation will come to bear. how do they self regulate void of lawmaking? hannah: cz is saying they are willing to work with lawmakers all around the world. for some, they are trying to be more public and transparent whether it is in the twitter spacer interviews. they are trying to show that there may be more hope in both than ftx. caroline: we think you always hannah miller, keeping us up to speed on the latest in crypto. these two hours really flyby. paul: we had some upward movement can the market. let's see if we can continue that momentum. we will be watching. caroline: balance of power is up next. from new york, this is bloomberg. ♪ and expertise you need to bring out the innovator in you.

you also had cz of binance this morning trying to sure up confidence.ulated proof of reserves backed one-to-one for those that have bought bitcoin and ether and other crypto on binance. crypto as you know kind of trades like a nasdaq 100 tech stock these days, so how the rest of the market goes is kind of how crypto goes. stuart: all down. >> coinbase by the way cathie wood bought coinbase last night. stuart: susan thanks a lot. see you shortly. back to the big board we're now down 450 points that is 1.3%. are there any dow stock winners? there's 30 stocks in the dow, any winners? one. verizon is up 2%. the smallest losses are by the rest of them on that list. all right, charles whatever it is? >> river labs. stuart: verizon, cf industries, fidelity. not many big names on that list of s&p 500 winners, not at all, actually. jd.com, t-mobile, those are the only three winners on the nasdaq? >> china reopening theme. stuart: i guess tesla just turned positive just slightly, dollar tree is down. coming up here is what we have for you. part two, yeah, we got

customers have pulled billions of dollars worth of assets from binance.t does the collapse of ftx mean for the larger sector moving forward? >> i expect we will continue to see those ripple effects play out over the next few months. risk is being pushed out of the system. i think the industry will recover. the biggest impact from all of this is the loss of trust with consumers, regulators, in washington. that's going to take a very long time to rebud. geoff: lawmakers and capitol hill are pushing legislation right now to rein in the cryptocurrency market. can crypto work as designed if it's subjected figural -- the federal regulation -- to federal regulation? >> -- an organization that enables cuomers to buy or sell crypto assets on your platform, you should be regulated. there are templates for how to do that. some regulators are already doing that. most notably the new york state department of financial services has a comprehensive framework for regulating cryptocurrency. some states do not. the federal government does not. regulators need to be much mo

ftx file for bankruptcy after rival by nancy abandoned a -- binance abandon a rescue deal. research has been on ftx in alameda research. reuters reported she moved around $10 billion in customer funds -- he moved $10 billion in customer funds to alameda without notification, that led to a huge shortfall. people of inevitable -- customers hadrawdsm. veabn boleunhe t say he has close to nothing after a bad month. he also says, i think i have one working credit card left, it might be $100,000 or something like that in that bank account. a month ago he was estimated to be worth $15 billion with ftx valued at $32 billion at its peak. james was into that interview and here are his thoughts. >> the first thing to say is that samuel bankman-fried was turned -- was told by his lawyers not to do it and he did it anyway. that tells you where his headspace is right now. he gave the air that he did not care about himself. he only cared about what would happen to the people who had lost money in ftx. he just wanted to do right. did he actually answer the questions honestly? i listen to t

so where is binanced focus a look at sam bankman-fried, he's been outspoken. lot of different people including, of course, andrew ross sorkin not many weeks ago not long before he was taken away you can imagine the scenario, carl, i know it sounds funny, if we gets out on bail maybe he'll join us on set he seems to want to tell anybody who will listen i didn't know, it wasn't my fault i want to make everybody good. >> it would be interesting to pair whatever he says with what john ray said in front of congress a few days ago. namely they've secured about a billion in client assets it'll take weeks or months to secure all of the company's assets but there were virtually no internal controls no separateness whatsoever, i've never seen an utter lack of recordkeeping, i don't trust a single piece of paper in this organization, all of that from john ray the other day. >> i found that and at the time we talked about it a bit, perhaps one of the most fascinating things we've learned thus far in part because of the name brands of the venture investors who made signifi

on november the 9th, the day after those assets were frozen, binance binance announced it would not go through with the purchase. according to this filing, the same day bankman-fried email the bahamian attorney general with an offer. that offer stated, that he would offer to unfreeze withdrawals just for about how maine law bahamian customers just on ftx so they can quote, tomorrow, fully withdraw all their assets, is that correct? >> on november turek on the venmo tent, the next day, ftx was placed into a foreign provisional liquidation in the bahamas. correct? >> the next morning. now, after that, bankman-fried then made good on his offer. on this previous days offer in that email to the bahamian -- opening withdrawals just in the bahamas for period of 25.5 hours. is that correct? >> now, during that period, $100 million was withdrawn in the bahamas from ftx by 1500 individuals. correct? >> correct. >> this was a day before you are such a takeover. so he was still in control. right before he was supposed to have this off. >> correct. >> now, i think what we have here is that,, on nov

-- binance. >> i think that everyone needs to be worried about them. they started creating some sort of transparency scale. obviously, given the ftx situation, the participants probably want more transparency. hopefully we get there. that is one of the reasons why we saw a company report that close to three million dollars withdraw in the last day or so. if you look at that, it is amazing how the as class actually increased even with the massive withdrawal. into private wallets and storage as opposed to dumping on the market. >> lastly, john, what is it like in the ecosystem right now? what is a like in terms of having access to capital? >> it is definitely harder. the rate of momentum we have in terms of building and business partnerships from traditional finance as well as new developers was definitely moving far faster and less resistant. right now there are clearly some people who hesitated a little bit. i am still positive about real utility into the space. you have also seen just this last week, we have companies like porsche finance and nft plan

. >> so an ironic turn, it would be binance, who is the one that caused the decline of ftx. does it almost sound as in the gravity is sinking in. i don't know if he's been in personal denial, but if that's how it's prosecuted, he's facing a significant amount of prison time >> it seemed a few hours ago that that was moving forward that delay tactic, as someone described it, was sort of going away he's going to come back and the trial will get underway. he'll be arraigned the process can just move forward. this appears to be another delay tactic based on what legal experts were telling me, an someone described it as him getting cold feet. there may be a built of a disagreement between him and his parents or the legal team. if he has any opportunity, there's sort of a window for him to get bail in the u.s. and get some deals done and negotiate. he may be losing out on that, that window that i'm told is very, very narrow. >> kate, thank you >>> let's get to tyler mathisen for a cnbc news update hi again >> welcome to see you. >>> here's your update at this hour stelantis have c

because ftx is no longer a player binance 75% or 80% of global trading volume and a lot less trust in and they've had to come out things like proof of reserves. last week some of the auditors working with these exchanges say no longer working with any crypto company so any of these exchanges are looking for someone to back them saying, hey, we can vouch for these guys now that auditors don't want involved becoming harder, and a lot of questions on hwho's solvent, who's not a lot of folks pulled money off of these it exchanges in the meantime. >> thank you. >>> heading to break, let's get a quick check on the markets with the dow up 153 points right now. s&p up 14. 38.32. nasdaq higher by a third as well pap third percent i should say we're back in two. >>> welcome back the spac boom has fizzled. a piece in the journal this morning, the latest to take a critical look at palantir and it's spac invested strategy. as a strategy, i should note it's since been scuttled a high-profile casualty in the spac slowdown. stock is down 60% a year today as it has contributed to a slowing growth rate

you have binance u.s. cutting fees. it was bound to happen.o happen, this fee war you are seeing. similar to what you saw in traditional finance. what does that look like? volume-based discounts. when you go over a certain threshold in trading, this is something they are proud of. they are pioneers. but these moves are going to continuously impact revenue as we see them put pressure on the industry. lastly, sushi swap. centralized exchanges. exactly. what is happening? we have the chief explaining there is a liquidity issue that could be created. the token plunged, 18 months of runway left. facing similar opticals. they have said in this letter that they do not need to necessarily go by the way of all of these other firms that are facing more severe issues, but to stave off issues they need to make changes in terms of how they feel about the token onyx. ed: thank you. how are you across so many things? zooming out to the ftx impact on institutional adoption, let's discuss with the ceo of front financial, which advises traditional firms on ways

there was the headline of binance seeing an increase after the ftx implosion. activity looking like from an activity's perspective? -- a trading perspective? >> we have to separate retail trading. it is reported on in coinbase public earnings, it is a great resource for gathering public information that is audited. that is why publicly listed companies. on the institutional side, we have not seen massive outflow or inflow into bitcoin or other digital currencies. on the derivative side of the market, we have not seen a material change since the summer. open interest remains at stable levels. the key question is, who are the participants in the market, how is the activity changing? i think generally we see investors taking a risk off approach in tech equities and crypto assets. it will be interesting to see as we head into the new year depending on the rate environment and sentiment on risk assets if it will flow back into bitcoin. i do not think that bitcoin and gold are substitutes. i do not think people that want exposure to bitcoin, a more volatile growth ac

in the last day, the last 2a hours, binance, the world's biggest cryptocurrency exchanges fighting againsttheir assets from the marketplace because of course they are concerned about the outlook. this is the knock—on effect of the ftx case and the impact across the industry. we will keep an eye on that as well. the pharma giant pfizer says the us government has agreed to buy 3.7 million courses of its anti—viral covid treament — paxlovid — for $2 billion. that supplements 20 million courses previously already bought, and delivery is planned for early next year. pfizer — which also sells a covid—19 vaccine developed with biontech, is expected to bring in $100 billion in revenue this year, twice its earnings before the pandemic, and more than half is driven from its covid business. the christmas shopping period is under way and it's the busiest time of the year for print book sales. according to industry magazine the bookseller, hardback sales of celebrity autobiographies are down compared to last year. the magazine said the decrease in sales was down to the high price of hardback books and

we decided to pull out as an investor that he launched a series of offensive tirades at multiple binanceatening to go to extraordinary lengths to make us pay. we still have those text messages here is how the drama then unfolded sbf says you won, no need to lie now about the buyout we initiated conversations about buying you out and we decided to do it because it was important for our business and while i was frustrated by your, quote, negotiating being tactics, i ch still do it. and he said he threatened to walk if we didn't kick in an extra $75 million and we did it anyway because it made us feel more confident, we didn't want binance on our cap table, that is the investing group, but again none of this is necessary. you won. why are you lying about this now? so as the whe world turns, thep opera continues. >> if they say they have the texts, that is all stuff that can now be brought before congress and these hearings. why you would want to extend the drama and bring it about -- >> well, this part is -- this component part seems like a whole side show just them going back and forth >>

why did binance, which we know, we had cz on this week, why did they buy voyager which is a failed outfitp coming back to, is there just this endless attempt to try to stabilize bitcoin in the face of what could be a big change in the s.e.c., an s.e.c. sweep as john reed stark, a must-follow on twitter, enforcement for 18 years. and what he's basically saying is there was a big change in the s.e.c. in that gensler has basically had it you either comply, the runway is short, he said, or now it seems like the runway would be over. one thing i think that happened, i don't know if you know hester pierce >> i do. we have had her on, i believe. >> she has been very, very anti-regulation. i think the sam bankman-fried has really changed everybody's mind about regulation. now, she gave a very powerful interview, i mean, when i say powerful, i mean troubling february 25, 2022, where she said, she was bearish. there isn't any clarity, there's nothing in the rule making agenda that says we're going to create a registration regime, and she said it would be difficult to regulate. that's all over. it's

while it is not a panacea against fraud, misconduct or poor good binance -- governance. with what happened with ftx is the result of a lack of transparency and oversight. it was an exchange that was domiciled offshore. not in the united states of america. i think again as we move forward we are keen to see more firms operating either in a more public manner and providing more transparency. the other step is to do more activity fully on chain. the ledger is public. that is why this technology is so exciting. we would love to see more firms embracing the public nature of the ledger and do things more public and more verifiable manner. our credo is do not trust, verify let's use the technology g do that. -- to do that. caroline: with more companies going public, circle is not following through with his acquisition, no handholding. they are pushing through the day they were meant to make a decision, december the 10th. they still say they want to go public. do you think will happen ultimately while we still have the all that's ready to happen and uncertainty around the regula

on top of that recession peers are less all binance -- ominous.e the 10 year breakeven rate slumping given that we have seen the cpi data released last week. kkr cutting inflation forecast for the year two 3.9% for 23 -- to 3.9% for 23. given the context of what kkr is recommending they are saying invest in areas like structure, private credit, if you are interested in loading up on equities. go into life sciences data security, and also energy security. haidi: deal completion rates bouncing back to pre-covered levels in australia, we are back with the m&a outlook. this is bloomberg. ♪ this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. haidi: australia's foreign minister is visiting beijing today in the fi