nor do they seem to know the obvious and confident sam bankman-fried's caroline ellison. she was totally and unqualified for the job she claimed to have. she had no track record of success at anything and reportly went online and then on the podcast back in may, months before the collapse, caroline ellison came out and admitted she had no idea what she was doing. watch this. >> do you think you've been able to pull this thing off without your mathematics degree or it has been the pillar of your trading activity? >> yeah, absolutely could pull it off without my math degree. use very little math. starting out as an intern and you, you know, do something and accidently lose maybe $1,000 at your decembering, you're like o, everyone is going to hate me now and it's terrible. overtime you have to -- over time you have to get comfortable with larger and larger swings of money. yeah, trying to think of a good example of a trade where i've lost a ton of money. well, i don't know. i probably don't want to go into specifics too much about that. >> tucker: i've lost a ton of money. n

first, this is sam bankman-fried and after that, you'll hear from caroline ellison.t's watch. >> that's when i think you start to look at things like yeah, there's a change of monetary policy and investor sentiment. those are the types of things that there's probably artificial mechanisms sort of that were creating these fly wheels, driving up with nothing backing it and the fly well starts to falter and it crashes back down. >> a lot of people that are very smart but are not good at necessarily like the messy world of trading, especially crypto trading. you never have all of the information. so you have to make your best guess based on what you can see. >> trying to think of a good example of a trade where i've lost a ton of money. well, i don't know. i probably don't want to go into specifics with that. >> martha: yeah, can't think of one. don't want to go into many specific there's she says with people's hard earned savings. it's buyer beware to some extent. there's also an expectation of good business practices. then raises the question about where were the regul

in the hedge fund alameda, that was being run by his either current and/or firmer girlfriend, caroline ellisone know about that because that is spectacularly illegal. >> that doesn't happen on wall street >> we're not on wall street, we're in the bahamas. >> a lot of the headlines passed on this over the weekend, but essentially $10 billion in customer funds were 2r6rd to alameda. both "wall street journal" and reuters are reporting that royaltiers is also reporting that 1 to 2 billion is just missing. so that's a huge concern we have reporting from our investigative team, and they were looking that billions were being used on al meeta, being traded on the alameda, like, through their trading house, so that's especially concerning you can't take customer funds without their consent. what's especially bad is it's a clear violation of ftx's own guidelines >> again, i do not want to speculate, but having done this for 25 years, i will speculate a bit. what we may have here is that the, quote, smartest guys in the room, or smartest kids in the room in this case, may have just had a bad hedge fund,

there are major questions being raised about his rumored ex-girlfriend, caroline ellison, the ceo ofompany they transferred funds to, and analysis of the calculation of risk. >> pull it off without my math degree, use very little math. use a lot of like elementary school math like arithmetic, probability, but not any of the advanced stuff in learned in college. >> sandra, i used to work on the investment side. i know you did as well. the team is the foundation for your product. you look at them before you put your money in, right, sandra? >> sandra: i think that has a lot of people comparing it to the bernie madoff ponzi scheme, perhaps she should go back to the elementary school education and learn to donate or spend money you have to actually have it or make it first. kelly o'grady. >> john: a quick correction as well, it was facebook giving free laundry to employees, but stopped doing that. and missile strikes against ukraine, sixth mass attack, ukraine may be in position to negotiate a peace deal with russia some time this winter. bring in morgan ortagus. go to what the general s

the major questions are being raised by sam bankman-fried's rumored ex-girlfriend, caroline ellison. the ceo of sister company alameda research. here she is in a previous interview sharing how careless they were with fund. >> we tend not to have things like stop losses. i think those are not necessarily great risk management tool because they often sort of lead to you being closed out of your position relatively low liquidity situations and losing to that, kind of like exacerbating momentum from liquidations and things like that. reporter: cheryl that is akin to gambling with money, right? i used to work on the investment side. before you put your money in, you look at the team. i spoke with a number of vc sources who did invest, they shared there wasn't enough due diligence here, cheryl. cheryl: now you've got others in the same space on the defense because of this whole mess. kelly, thank you very much for that live report from los angeles. well for more on this story i want to bring in congressman french hill, member of the house financial services committee. congressman, thank yo

additional questions are being raised about one particular meeting of that team caroline ellison.ied's ex-girlfriend. while ellison is being accused of losing customer funds a interview sheds light on her philosophy surrounding risks. >> i think like being comfortable with risk is very important. quick to react and good at making judgments in very uncertain environments, i think. a lot of people very smart but aren't good at necessarily the very like messy world of trading, especially crypto trading. >> and you may recall that sam bankman-fried was a mega donor this past election cycle but also learning more about his family and their ties to democrats. bankman-fried's father helped senator elizabeth warren's tax bill organization that hence democratic funding from well-known silicon valley donors. and brothers two meetings with white house officials in march and may have also raised questions. now the former ceo currently in the bahamas. fox has confirmed the authorities are discussing potential extradition options to bring him back to the states for questioning. wreath? >> conti

major questions are that sam bankman-fried rumored caroline ellison. former ceo of alameda research. that ftx transferred funds to help with their liquidity issues. elf lesson shared in a previous interview how important having good judgment is. >> being comfortable with risk is very important. quick to react making judgments in uncertain environments i think. a lot of people who are very smart but aren't goodnessly messy world of trading especially crypto trading. reporter: in that court filing the new ftx ceo sharing no auditing ever occurred for alameda's financials. what is also curious sam bankman-fried's ties to democrats. his father joseph helping senator warren draft a tax bill we're learning. his mother runs a pac that helped secure democratic funding from silicon valley companies. not to mention his brother gabe's meetings with white house officials are also raising questions. back to that team, david, i used to work on the investment side. you look at the team before you put your money in. i spoke with vc sources who did invest. they shared

and maybe rising kate, do we know where sam bankman-fried is right now or his hedge fund ceo, caroline ellisonported also to be his girlfriend, sort of. >> i spoke to a source who is close with sam bankman-fried and the way they put it is that he is ghosting some of his closest investors and confidants so they don't know where he is at this point. he is technically based in nassau, bahamas. we don't know if he is there right now. no word from him and radio silence is what i've been hearing from people who are close with him we don't know, but he did have a small tight-knit group that was based in nassau, a very young group of employees and that was seen as a good thing when we interviewed him back in august, he cited that as a reason as being lean, being more profitable and pointed to bigger -- what he called more bloated companies like coinbase. but in hindsight, people now say, he didn't have the manpower to be doing what he said he was doing in managing billions of dollars. >> okay, kate rooney, thank you very much. >>> now let's turn to the potential contagion risk in the industry caitlin

the clients of the exchange, and then the traces of money are lost alameda's ceo, 28-year-old caroline ellison a half year course as a junior trader. yes, i certainly could do all this without a degree in mathematics. there is almost no need here, mathematics, maximum, the school curriculum, and while the bahamas police are interrogating benkman freed american regulators. threatened with an investigation into the reputation of cryptocurrencies around the world, a serious blow has been dealt a cryptocurrency is an exceptionally hysterical financial instrument that lends itself to a greater extent, rather than verified information. rather than some objective basis. whether it has undermined trust undoubtedly. yes, there is another side to this crypto medal, elon musk drew attention to the fact that the founder of ftx was one of the largest well, the second donor of the democratic party after george soros, usa is crashing. indeed, the bankman freed poured in support for the democrats, according to various sources, from 36 to 40 million dollars, but the media remembered another interesting fact ba

would any single one of you hire his girlfriend, caroline ellison, apparently was trading billion of dollars to manage a food truck? can you tell me who in our federal financial services regulatory administrative state was watching ftx to make sure that no one there stole people's money? was anyone watching them? that you know of? >> senator, just from you're dealing-- >> you're a brave man. >> i understand, you're dealing here with banking and credit union regulators and ftx is not engaged in the banking business or credit business. >> i'm not saying you should be. i'm asking that you guys -- you guys at the top of the food chain in terms of financial services regulation. do you know who was watching these chuckleheads? >> well, these folks, i think, were engaging, generally, in investment and trading activity and so, in the first instance, if you're thinking about-- >> looks to me like some of them were engaged in stealing. >> well, that's upped investigation now, senator. so i think in the first instance, you'd probably want to engage with the market regulators, sec and the cftc t

notice the obvious incompetence of sam bank, manfred's business partner slash girlfriend, caroline ellyson ellison was totally and obviously unqualifie d for the job she claimed to have. she had no track record of success at anything she reportedly wrote online about her drug usewe and then on a podcast back in may months before the collapse, carolinea t ellison just came out w and admitted that she had no idea what she was doing.is >> watch this. do you think that you have beenr able to pull this thing off without your mathematics? or i degree or it has been the pillar of your tradingy activity? d uh, yeah, absolutely. staruld pull it off without my math degree. >> use very little math whend you start out like an intern loa and you do something and accidentally lose maybe decm a thousand dollars orbe your desk, you're like, oh, god , like everyone's going now to hate me now.'s t like, thiserri is terrible. and yeah, over time you have to sort. yeah. get comfortable with larger and larger. uh, swings of money. >> um, yeah. a g trying to think of a goodhere wellple of a trade where i've lost a ton