and sam bankman-fried was a fraud. if they didn't know that, they certainly should have known that because it was very obvious to anyone that bothered to pay attention. one of the few who did pay attention was a short seller called mark cahotis who took one look at sam bankman-fried, sbf for short, and recognized here is a con artist. obviously. watch this tape that aird. >> sbf and the account for sbf is bailing out known ponz is and frauds in the crypto space. everyone that's gone bankrupt or is a proven fraud but nothing here fits. everyone, everything reads like this thing is a complete scam. and i think this thing is dirty and rotten to the core. >> tucker: so if that guy on a small audience investment channel can see fraud, where was gary gensler of the sec? by the way the tell in the sentence you heard is that sam bankman-fried couldn't explain where he got his money. here you are a 30-year-old billionaire. how'd you do that? if you can't tell us, maybe that's a red flag and think most investors would have recog

is reportedly looking if sam bankman-fried broke securities rules. sources speaking to cnbc, the department of justice is probing whether customer funds were miss appropriated the biden administration and two committee chairs have criticized ftx. this is a huge fall from grace for sam bankman-fried who was a big guest on capitol hill and a donor to biden's campaign and put more than $30 million to the midterms >> a significant philanthropy as well we hear from the heads of the other crypto exchanges this morning trying to shore up their exchange >> reporter: crypto.com ceo addressed the concerns of the transfer that it accidentally made to another exchange a lot of concern was circulating over the weekend that the ceo said that they took no risk. maintained one-to-one reserves and added an audited proof of the reserves would be published within weeks this comes after withdrawals rose over the weekend and the token is down 40% in the last week there is a crisis of confidence there. the ceo of binance told a gathering of g20 leaders that the industry n

business of ftx, owned by sam bankman freed.ges tweeting about it, saying it's a nonbinding letter of intent so they need to do due diligence. cz, the ceo of binance, tweeting that ftx, he says this afternoon, ftx asked for our help there is a significant liquidity crunch he said to protect users we signed that nonbonding-loi intending to fully acquire ftx to cover the liquidity tex, we will conduct due diligence sam bankman freed saying we have come to an agreement on a strategic transaction with binance. binance was one of ftx's first investors. you talk about how we got here and how the drama has played out. >> very different tone from two of these major, let's call them the biggest players in crypto. at least two of the biggest players. there's been a feud going on and the tone from these tweets happening in the moment, spf is saying things like a huge thank you to vz, and binance, where cz is tweeting things like there's a significant liquidity crunch someone is being more generous to the other here. is this a case of sam b

sam bankman-fried warned of bankruptcy if he cannot secure the capital. f ftx has an $8 billion hole on the balance sheet. >> talk about seqouia writing down to zero what else are you seeing >> the contagion is in capital funds and startups across the sector blockfi which ftx agreed to bailout a few months ago is suspending withdrawals i saw a letter from multicoin capital and they say the fund has 10% of the assets under management strand the on ftx genesis, a trading firm said it has $175 million in the trading account on ftx exposure has no impact on the ability to serve clients meanwhile, the web site of ftx ventures the $2 billion venture capital arm of the company went offline. no word back on what that means. >> what about the legal fallout? a lot of revelations in the last few days of sam bankman-fried's business ties. we heard from gary gensler on "squawk box" yesterday >> it is starting to receive questions from law enforcement to freeze ftx assets we are talking about tether that is held by ftx this is the dow jones industrial average that alam

ftx sam bankman-fried saga gets crazier. you will hear from the lawmaker who was talking to gensler to take action. natalie brunnell is here, congressman tom emmers is on deck. my takeaway why reparations are generally a mistake especially for the receiver. all that and so much more on "making money." ♪ charles: so here is something you doesn't see a lot this year coming into the session we've seen the s&p 500 trade less than 1% for seven consecutive sessions. by the way last week the whole week it didn't trade more than 1%. that is only happened a few times this year. the question is what happens the next year? usually intriguing because in january of the next week we were down almost 6%. then after this you can see mostly up, mostly down, always more than 1%. more recently, we've come out of this with very, very big rallies. so, is this sort of the calm before the storm? if it is a cold spring you want to know what could catapult the next move. what is looking intriguing folks, internals are improving big time. check out t

soap with sam bankman-fried findin: think? soap with sam bankman-fried finding out to — think?? soap with sam bankman-fried finding out to not be that _ think? soap with sam bankman-fried finding out to not be that he - think? soap with sam bankman-fried finding out to not be that he is - think? soap with sam bankman-fried finding out to not be that he is not i finding out to not be that he is not the media darling that ever thought he would be, his mission was to get the right kind of regulation by going to dc, by costing up with the senators and if it turns out that he actually wasn't doing some good things behind closed doors, financially, it is going to be pretty hard for regulation to move forward in a way that is valuable to crypto exchanges in the market. there are some countries it now uses their official currency. that there are some countries it now uses their official currency.— their official currency. that is true. el salvador _ their official currency. that is true. el salvador -- - their official currency. that is true. el salvador -- el- their official currency.

sam bankman-fried is a bad actor and a liar. stu: ouch.: yeah, the bankruptcy filings shows some of those entrusted their money on ftx exchange and it's going to be hard to get your cash back. only $900 million in actual assets and liabilities of $900+. by the way, half of that $900 million was hacked this weekend. can't write a book like this but michael lewis is trying. but some of that -- okay, some of the hacked funds were found this weekend but founder sam bankman-fried, sbf, has been hold up in the bahamas and monitored and questioned by the bahamaen authorities and they've lost billions this weekend,'they ether $2 billion and some of the biggest crypto currency players worth billions say this will take years to come back from. this is not good but a shakeout might be good to get rid of the bad actors and look at where bitcoin, ethereum are positioned rights now, it's on a crash. if it was a collapse, a total collapse, bitcoin would go back to $3,000, which is where we were trading before covid and ether not even at bottom of the low

cryptocurrency exchange binance reaching a deal to acquire sam bankman-fried's ftx.com.de the u.s. business kate rooney joins us how does this -- so many questions, but first, how does the deal impact the rest of the crypto industry right now? how much of the crypto industry is this? >> it's a big portion. for one, this creates this massive global exchange. binance and ftx are two of the biggest exchanges out there. this is a deal to buy ftx.com, which is essentially sam bankman-fried's international side of the business it makes up 95% of the parent company's revenue based on financials we've seen. the u.s. business is a tiny portion of what it actually brings in. so if you combine binance and ftx it makes for a big player in this market and begs the quesf who is the lender of last resort if not sam bankman-fried? we've seen him do deals bailing out other companies, he's now on the other side of this and he's in the position to be bailed out himself by one of his biggest competitors. >> so what happens to all of those companies? what happens to all the sports endorsemen

the founder sam bankman-fried apologizing for the failure.ore on what we have learned from the bankruptcy hearing and his own background. what did you make of any apology? >> tim bankman-fried apologized -- sam bankman-fried apologized in a letter to the exchange's employees. he said he wishes they did not end up in this place, that he's sorry for what went wrong. it is up to those employees that experienced dramatic fallout from this implosion to decide whether that is enough of an apology for them. he is still speaking out about what happened and giving his side of the story. ed: if you are new to this story, i have some some of the because each day a new name comes up. the latest name is jane street. can you explain to the audience the relationship between sam bankman-fried, ftx and jane street? annie: there are a lot of players to keep track of. sam bankman-fried ran ftx, the now bankrupt crypto exchange, once the second largest ripped of exchange in the world. before this dramatic downfall, he worked at a wall street trading firm called

sam bankman-fried grew up on stanford campus.y are both hailed as these child geniuses and investors really ate it all up. almost $2 billion. kristen: he also went to one of the priciest private schools. >> it was a very fancy suburb and located in a mansion. the tuition is $56,000 a year now. and a lot of wealthy people's children go to the school. >> it's almost a very silicon valley type of story. i understand that they have rave reviews and progressive values. what does that mean? >> they described them is very classically progressive and open-minded. they are known to be very kind to students. this mother had students over at her house and that's pretty rare for a professor. she talked about anxiety outside the classroom. his father became a licensed therapist and they both wanted to do good for the world. his father was a huge fan. he did not do it just to make money. >> now are your -- kristen: now we are hearing assets were unaccounted for, went missing, and top executives had hundreds of millions in real estate. is there

this was never sam bankman-fried's money. this was not a donation made in the right way.ney back. maybe i will support you and donate the money myself. it comes down to that, right? i hope these guys take this responsibility and step up and do their job. >> todd: wide do you investigate ftx on the first place? >> i think nobody would have funds and exchange and i learned a lesson in 2017 using other funds with exchange. the whole idea as a courtesy that you own the money, right? the hardware is still mine and nobody can take it from me. sam bankman-fried really had a lot of media in his favor and telling him he is the best thing that happened to crypto. hanging with all the biggest politicians pushing regulation. i think they all got defrauded by him. they put it out there and i'm actually quite surprised how the media is pushing him as a savior. i saw this article in "the washington post" that said, "sam bankman-fried's collapse will make an hindrance how he was helping the pandemic." he was not helping the pandemic. he was lying on stuff. where is all the donations? the

maxine waters -- sam bankman-fried.nkman-fried donated more than $300,000 to seven democrats on house financial services. somebody should be grilling them, congressman. even the vice-chair of the house financial services -- [inaudible]. don't worry that maxine waters got any money this is not looking good, congressman. >> this is terrible. you know, large firms getting campaign donations to politicians is nothing new, it is not illegal. in general a 2900-dollar donation here and 2900-dollar donation there is not enough to corrupt the regulatory environment provided you have a regulatory environment. this murky situation we find ourselves in now, this is right for this type of incompetence and fraud, to run rampant. let's be clear sam bankman-fried probably broken some laws. he might well be found guilty in court. he may well do prison time but not like he is getting off scot-free. the reason we have regulators in the first place to make sure there is segregation of funds. we have disclosure, registration to keep things

ed: there is certainly a level of contrition from sam bankman-fried. he says he has mistakes that he wishes he could change. we will continue to bring the headlines as they cross. what are the key questions we want answered on the stage? sonali: it was acknowledged that the dollars, where everything had gone, they might get into the details of those transactions. they are starting with the bigger issue at play. will we get those answers about where the money went, particularly that $8 million hole -- $8 billion hole in their balance sheet? caroline: a huge story here on bloomberg news today, a security concern of a different type, tiktok. they keep growing. south dakota is acting on it, banning tiktok on its government employee devices after they said the government -- said the app's ownership by the chinese government poses a national security threat. this time, concerns surrounding children's safety on the platform. it was the front cover of this week's businessweek and was a real deep dive into some particularly heart-wrenching stories. i must warn

homan, the chief strategy officer told me he thought that capital venture officers were drawn in by sam bankman-fried'sd some harsh comparisons. he compared it to two pretty high-profile financial frauds. >> i think looking back on this now, one of two things are true. either sam was completely delusional, which i think a lot of people was elizabeth holmes and her mind-set, or he was so manipulative that he was able to set this cult of personality and do whatever he deemed like a bernie madoff. there's no middle ground it's one of the two. and that is going to decide whether these investors were manipulated or negligent i think it's probably more likely that they're being manipulated. >> and brian, we did reach out to ftx and sam bankman-fried on those accusations. no comment from the companies, but the former ceo, sam bankman-fried now saying that he is still looking at financing options despite that company filing for bankruptcy and that process really being underway. up-to-the-the new ceo, john wray, out with his own pretty sharp criticism of what happened here at ftx. and as you mentioned, this is

the bankrupt crypto exchange is trying to distance itself from sam bankman-fried.iation with the firm this after sam bankman-fried tries to explain his side of the story with one tweet at a time he and ftx became overconfident and careless his words in a tweet dan murphy joins us with the new comments from another major player in the space who is also making waves in recent days. dan, this is a big name. >> reporter: indeed, dom the binance ceo. he has likened this to a madoff moment for the crypto space. he did not mix his words in abu dhabi today. he said the only way to correct this is for regulators to understand what happened behind closed doors at ftx. he took a swipe at the fallen rival sam bankman-fried calling him a psychopath he wished he had known earlier about the state of ftx >> he tweets about a sparring partner and when his house is burning -- when reall of this is happening, he is losing focus. i didn't know this problem existed in ftx otherwise we would have sold tokens earlier >> reporter: and investors are questioning now if they can trust any of

sam bankman-fried, sam bankman-fried reportedly told vox, quote, expletive regulators.hey can't distinguish between good and bad. these are some of his comments. he is listed as part of speakers for the upcoming "new york times" event with larry fink and janet yellen. does anybody need to listen to this kid anymore? are we not just done with sam bankman-fried. >> oh, boy, no one needs to listen to him anymore, that's for sure. the bankruptcy receiver who is acting as ceo listed his first day report today. he is the gentleman who was in that same roll with enron and he said he has never seen anything like this in his career. this was, it does appear that there were many potential crimes shall we say? and certainly breaches of fiduciary duty and contracts but this was an offshore exchange that was not regulated. my response to all of this as one of the good guys in crypto so to speak, good riddance to the grifters. there are many others like him. some of which have been flushed out. some of which yet to be flushed out and what happened in the absence of regulation a lot o

if you want sam bankman-fried's, account, you can go to twitter. he has his own account.uy: are those twitter posts going to be a problem because there is an -- a lot of noise and i am wondering if this is being raised as a issue if they could confuse matters? sonali: the lawyers of ftx have been accusing sam bankman-fried of undermining the bankers he process. remember, this is after the bankruptcy filing that was on friday. that complicates things. ftx has made it clear they have been tweeting that sam bankman-fried is no longer part of the company and there is a dispute here between the company and sam bankman-fried and as a we have -- and as we have reported, there are investigations from different regulatory agencies will stop how will those suites use is a good question -- agencies. how will those tweets used is a good question. alix: if alameda wound up getting consumer money from ftx, this is an ftx financing and ftx examples in a circular way. sonali: it will take a long time and we tried to do some of this in our reporting and there is a story of the terminal th

the owner sam bankman-fried spent $# hundred million on real estate for himself and other senior staffkman-fried he used $10 billion in client funds to prop up his hedge fund called all meet yeah research that lost money betting on other things. it left ftx with not enough money for client withdrawals. experts say there were a lot of red flags missed related to this crypto exchange. >> failures looking in the rearview mirror. anybody that would have invested in this on the front end should have asked pointed questions about corporate governance and control. every time you are dealing with something off shore it heightens the concern. >> as the bankruptcy court tries to recoup losses for investors left holding the bag, more calls for stricter regulation of crypto currency exchanges like this. >> we have consistently urged congress to take action to address regulatory process with digital assets and support legislation to better protect american consumers. >> the founder of ftx spent money buying influence donating $10 million backing president joe biden and spent $7 million on super pac

sam bankman-fried _ done because of this. sam bankman-fried tweeted . done because of this. because of this. sam bankman—fried tweeted he was looking to raise funds to pay back customers, saying: 0ne one interesting that's been happening recently... cryptocurrency watchers say the situation points to wider problems in the industry. it is reall a problems in the industry. it is really a symptom _ problems in the industry. it 3 really a symptom of what financial systems are like when they don't have enough regulation and enough supervision. we have had a number of cases in crypto of companies presenting themselves as safe investments for ordinary people, when what they are really doing is really quite risky, unregulated shadow banking that can all go very badly wrong. banking that can all go very badly wrong-— banking that can all go very badly wrong. some also the cryptocurrency _ badly wrong. some also the cryptocurrency market - badly wrong. some also the cryptocurrency market will i badly wrong. some also the - cryptocurrency market will come through this stronger but ther

what kinds of trouble is sam bankman-fried in in the bahamas? will kind of repercussions does he and ftx face? >> it is a little too soon to tell. it will depend on whether the findings of these investigations suggest he did engage in criminal misconduct. many investors we have spoken to and there has been reporting on this field in some ways betrayed. some are trying to make sense the person they either worked with day or came to trust as he was as he building a community center, beginning the launch of the other ftx had quarters. they building a new one. many people felt as if there were so many efforts to advance the presence of crip in the bahamas. spf's reputation certainly runs that attentional some people have told us. caroline: a lot of the emotions where you are right now. let's get back to the wider sphere. sonali basak has constantly what has criminal probe but looking within the sec as well but what about the impact he has lost of the money for others? some big money managers and the u.s. and worldwide. sonali: let's look at the ones

liz: well we were just taking with gary tan about ftx, the former ftx ceo, sam bankman fried has beene show to make customers whole after his exchange filed for bankruptcy but are the sins of the now extending to the father? charlie gasparino has -- >> joseph bankman had some input in the company. he was on podcasts with sam bankman fried. he is professor of law at stanford university. he is prominent guy in legal circles advising on tax matters and venture capitalism. i don't think people would say he is part of this whole thing but he is right now, this is according to the people gone there? liz: gone to the bahamas. >> to the bahamas. spoke to both of them. he is the key advisor and the guy holed up with his son whatever way you want to say trying to figure out this thing. sins of the father don't transfer to the son, vice versa. he is a key player here, from what i understand sam bankman fried is derespond sent met with him, the father is very despondent right now sam bankman fried keeps tweeting out he will make people whole. liz: customers first. >> i'm sorry. liz: initially i f

sb sam bankman-fried said he is doing all he can to raise funds. a sister company of the crypto operator could halt trading in the coming days and urging users looking to close positions to do so immediately deposits have been halted and withdrawals remain open. the security regulator in the bahamas has frozen the digital market this is a huge fall from grace for sam bankman-fried. he was heralded as the crypto platform he was known as the white knight for other companies going into insolvency and now issues coming to light. customers withdrawing funds and they don't have liquidity to meet withdraws and margin calls. as we spoke with one of the guests on the show yesterday, this really does feel like it is the end for ftx. the bigger question is what ramifications in the crypto industry and what does it mean for investment >> the last two points are why people won't necessarily be looking to help sam bankman-fried on this one. he is saying he messed up twice. put out these stream of apologies on twitter saying he needed help. when one considers tha

a lawyer for ftx speaking out in court after the crypto currency exchange and sam bankman-fried, new details what went on in that company next. ♪ ♪ and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare advantage plan, hospitals stays, doctor office visits and your original medicare deductibles are covered. and, of course, most humana medicare advantage plans include prescription drug coverage. with no copays or deductibles on tier 1 prescriptions, and zero d

reporter: liz, ftx founder sam bankman-fried is taking incoming from everybody.is the fbi in talks to possibly extradite him from the bahamas, to bring him to the u.s., investors that got fleeced are suing him in a class-action suit. both senate and house committees announced hearings into ftx fall from grace an bankman-fried is finally speaking out. his question, f regulators. bankman-fried unloaded his real thoughts what wrong saying this. f regulators, they make everything worse. they don't protect customers at all. lawmakers disagree. the top lawmaker on the house financial services committee they need to act because the regulators dropped the ball. >> current regulators in this current a administration is not doing anything to protect consumers. in fact made things worse. reporter: bankman-fried admitted he mistakes not ones you probably think. telling a reporter a biggest single f-up was filing for chapter 11 bankruptcy. liz? elizabeth: here is steve moore. democrats are not returning campaign donations. some are giving them to charity. this guy running the

creditors to seize sam bankman-fried's assets there robert frank joins us with more. >> good morning,ed also cited friendly crypto regulation as the main reason he located in the bahamas, but there were lots of other benefits, like no taxes. the bahamas has no personal income, no corporate income tax, no capital gains tax or estate taxes. the bahamas remains on the eu black list for offshore tax havens you also have strict privacy and banking secrecy laws they're one reason there are over 270 licensed banks and trust companies just in the bahamas. very difficult there to get foreign editors to find client access to account information. companies don't have to disclose shareholders, directors or even officers now, trust law in the bahamas can actually shield assets from u.s. creditors and you have special asset protection trust, which make it difficult for u.s. bankruptcy courts and even the justice department to find and recover assets bahamian security regulators have put several ftx companies into receivership. those are separate from the u.s. bankruptcy proceedings and could make f

we have the nassau guardian here, all about ftx and sam bankma bankman-fried. a lot more oth cinup tethbreak.omg ld, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world. >>> i'm kristina partsinevelos and here's your cnbc news update at this hour crude oil prices have tumbled to their lowest price since early january. this after the "wall street journal" reported opec plus countries are discussing a production hike up to half a million barrels per day at their next meeting in december >> two major railroad unions taking different paths on labor deals. the smart td union rejected a tentative agreement with management raising the risk of a nation

binance ceo has strong words for ftx sam bankman-fried. we will bring you the latest after this why do nearly one million businesses choose stamps.com to mail and ship? stamps.com is convenient you get the services of the post office right on your computer stamps.com saves you money with great rates from usps and ups mail letters ship packages anytime anywhere for less a lot less get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and get started today >>> welcome back to "street signs. i'm joumanna bercetche and these are your headlines jeremy hunt is looking to the statement to fix the fiscal hole he says the country's credibility has taken a hit. >> i didn't think the uk would do this. >> you are talking about the mini budget? >> yes it will take longer to rebuild the reputation than correct the gilt curve >>> binance ceo changpeng zhao talks about the downfall of ftx and talks about sam bankman-fried. >> there have been lies to employees and investors and to regulators and to his users and there

>> sam bankman-fried gave millions of dollars through a superpac that he establishes and also direct contributions throughout the midterms, usually wading into intra-democratic contests to support whoever the pro-crypto democrat was in the primaries. so, obviously, there are a lot of questions about whether democrats right now as they remain mt. majority -- at least for the next couple of months -- can conduct credible oversight. i mean, for example, this house financial services committee hearing that's coming up is going to be chaired by congresswoman maxine waters who, you know, has been photographed with sam bankman-fried's arms around her. he has really worked to ingratiate himself with the committees of jurisdiction over the clip to currency industry. so while democrats in the media have tried to make the story of the collapse about this need for regulation in the cryptocurrency industry and that's certainly a big part of it, you know, they've really tried to steer away from questions about how he was able to pull off a scam of this proportion. arthel: let's look at how much th

any film of sam bankman-fried?> we do we've shown it a lot of him walking around in nassau. >> the reason i wanted to say that is the gap stores, 8-7. that look is not -- boss pushes lulu that's not lulu. citi cuts foot locker. i'm trying to get a little out of him maybe he's going to a walgreens, which was a buy. >> got an upgrade over at di deutsche bank. >> if they can open and get something rather than have to call someone, that could be very good >> meanwhile, we're going to get to retailers walmart next week. but to your point that october was weak, jim, and what i have, again, also been hearing, i am curious to see what the commentary's going to be like from some of these retailers, obviously, moving into christmas but even next year, given what i'm told was a real falloff in consumer demand towards the end of the third quarter >> ell, i think that the -- something happened in the country in october, and it could be that people ran out of money. could be they had to start to borrow money could be the main st

. >>> disgraced ftx founder sam bankman-fried breaking silence over the finances and what led to its collapse. >>> and berkshire hathaway betting big and shares are popping in the remarket. >>> and former president trump expected to announce his 2024 presidential bid after yet another one of his candidates falls short. it is tuesday, november 15th you are watching "worldwide exchange" here on cnbc >>> good morning i'm seema mody in for brian sullivan let's kick things off with the markets trading right now. your money and where stocks are right now. futures indicating higher open dow up triple digits by 120 points s&p is up 30 points. stocks facing a choppy session yesterday on fresh fed comments about the rate hikes going forward with all three major indices snapping the two-day winning streak we are higher right now. look at what is happening in the bond market with yields lower. the 10-year treasury at 3.t8% also a gut check on the energy market where you are looking at wti crude down 1.3%. brent crude at $92 a barrel. we want to continue to watch cryptocurrency and the fallout ov

i hope sam bankman-fried is going to be there. be useful nonetheless to have the securities and exchange commission there to ask some really tough questions. >> carley: what do you hope to learn in these hearings? >> what we want to know is how did this get past the regulators? this is something that we want to have a light touch on because we don't want to stifle innovation, but we do need to get to the bottom of this how how something that appears to be so obvious slip past those that are supposed to be want gate keepers. and that really needs to be one of the main questions. but, also, what does regulation look like going forward? who is going to be in charge of that? what are they actually going to be looking for, right? and fraud is fraud though, you know, i should say this. no matter, what fraud is fraud. so regardless of what kind of regulations might be in moving forward, clearly somebody milled the fraudulent part of what sam bankman-fried and ftx was doing. >> todd: i think that leads to bakinger question. you seem like

i think there is a bit of an identity crisis in the industry because ftx and sam ban bankman-fried aswashington and lobbying for the industry and not only do companies have to deal with the fact that ftx was a top three exchange has collapsed, but the crypto community will have to figure out who will be the new face of crypto and who will represent the industry in washington, d.c. >> a great point he ran commercials during the super bowl buying the rights to the basketball arena he was the name and to your point, we have to see who can fill that void tracy, we appreciate it. tracy wang of coindesk. >>> bracing for the cpi report in a few hours jenny harrington is standing by to give us the latest read. >>> and coming up on "squawk box. our conversation with nike co-founder phil knight discussing the involvement in the mid-term elections we will be right back. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones power e*trade's easy-to-use tools like dynamic charti

democrats are insisting that the millions of dollars in donations that they got from ftx 's founder sam bankman-friedlity to conduct oversight. bankman-fried pumped thousands of dollars into the individual campaigns of influential democrats on capitol hill. a lot of them on the house financial services committee in charge of oversight of the industry, but also to the man who likely will become the new leader of the house democratic party, with speaker pelosi announcing plans to step aside. congressman hakeem jefferies who received the maximum individual donation from bankman-fried, another democratic congressman richie torrez tells me democrats still will do due diligence. >> are you concerned that democrats as they received millions of dollars from him might not be able to conduct the oversight effectively because they had benefited from his money? >> well as i understand it, there were republicans who received money from his business partner. 92% of his money was spent for democrats. >> the business partner that contributed heavily to republicans. i'm confident in the ability of congress to conduct

i can't fault sam bankman-fried for that or their policy team.carce commodities right now. we've got one bankruptcy filing that seems to hold anybody connected to alameda or ftx or sam bankman-fried or ftx or alameda. the lawyers speaking as one, we tend to put everybody on the capture page and that the courts figure it out. we are seeing that with the us ftx entity which for all we know is fully solvent and well-capitalized, we don't know, we have no indication if anybody is missing from the us and that may be the dividing line. even the most basic us regulation applied to a us entities that kept him out of insolvency. dave: any of the people who lost money as a result get it back? >> there's a lesson here. a long time ago, twee 8 years, for 5 generations in crypto time, 8 years ago, mountain geo x went into it, magic the gathering exchange, one of the first and largest, insolvency in japan and reemerging from that insolvency. it was multimillionaires, it skyrocketed since then. dave: did you have any sense there was a problem? >> they were spen

sam bankman-fried needs consequences.ans generally are not for regulation but your advocating more regulation of these cryptoexchanges and currencies. >> cryptocurrency this is a different universe than typical investors have in the past it's what people think the value is and in this case it was fraudulent. and then base seeing a value that they had made a put a value on. so to get all the facts out and 1 million people being defrauded is something we have to look into. jon: a dollar bill is backed by the full faith and credit that cryptocurrency is not backed by anything. >> it is not an they are finding out now they had chat rooms where people submitted payments they named them and then renamed the arena with super bowl ads i don't think investors are getting that money. jon: apparently went to members of congress and the president's campaign. south carolina republican congressman. thank you and we have more fox reporting in just a minute. when i first started ancestry, i had no idea what to expect. ethnicity inheritan

. >> sam bankman-fried apologizes to staff after financial buffers plummet $551 billion. sequoia says sorry to investors for backing ftx. credit suisse sees a fourth-quarter loss for the unit. shareholders vote today on a capital increase at the embattled bank's egm. it's horrendous news at wealth management of credit suisse. outflows are down from early october. they are not reverting. where's that money flowing to? that is the question we need to ask ourselves. in terms of assets under management, net asset flows -- assets flew out of wealth management, 10% outflow at the end of the third quarter. client activities are subdued. this is a pretty bad set of headlines before the fourth quarter closes. tom: we look ahead for more details around the restructuring of credit suisse. we will be speaking to octavian for insight. goldman sachs and the skull of 4% on the 10 year yield through to the end of 2024. our yield forecasts are based on that we see no recession and we think and elation is going to still be above the fed's target. manus: that's structurally higher inflation

all of this as sam bankman-fried is looking for cash to keep it afloat sam bankman-fried is warning ofif he can't ftx is in an $8 billion hole on the balance sheet. the venture firm of coinbase invested in the fund i asked brian armstrong if he saw any red flags given what he knew about their numbers versus the fact he had his own in c coinbase >> i feel duped as others because i look back at the interactions i had with sam and, you know, i felt he was a very bright and genuine and eager person perhaps a bit young. he is a bit reckless in certain moments. not corrupt. again, i hate to use that word we don't know what happened. people get in over their heads or misunderstandings happen. we should wait to reserve to see what happens when all of the facts are in you mentioned the numbers. i was aware of of our revenue last year. we did $7 billion in revenue and $4 billion of positive ebita i was aware of their revenue as an investor which was $1$1 billion. i was surprised how much cash sam had in the market and buying 9% of robinhood. you look back and i certainly didn't feel anything eno

you met sam bankman-fried.ocumentary on him in your mind, bill, is he some genius who just screwed up or is there something maybe more nefarious or socio-something about it >> well, of course, that's the $64 billion -- potentially $64 billion question right now he's young just turned 30 he was supposedly the wealthiest person under 30 last december when i interviewed him, he was 29 he sort of has this naivete about him, but also, you know, m.i.t. graduate, as you pointed out. both of his parents are stanford law professors clearly, was a james street capital trader obviously, quote/unquote, brilliant, right did he do this knowingly that's something that the justice department is going to have to get to the bottom of he was incredibly charming in his way, both with the media, with lobbyists in washington, you know, you're showing the "fortune" cover story, which was just from last september literally on the cover of "fortune" and ask, is he the next warren buffett. i think we know the answer to that now he charm

look what happened recently with elizabeth holmes, sam bankman-fried. a lot of it comes down to the cult of personality, worship of celebrity. those are things a single president can't change, we can change as investors, the public, demand for accountability and we're starting to see accountability when it comes to those cases but it's a matter of building from the ground up. our institutions starting with our families, communities, our civil organizations so people can have trust again because trust has been totally destroyed not just investments that have been defrauded and organizations like the cdc which should be apolitical and scientific. agencies like sec should be apolitical. should do its job of regulating. when these agencies have political agendas, that undermines public trust. charles: with cult of personality it helps when you have a fat checkbook as well. do you think about limiting the amount of money that pour into these campaigns? pretty soon it will be cost five to $10 billion just to be elected president? >> we need to look at reforms

x and sam bankman-fried. they were pushing for this minus the ftx markets.going on. trying to get attend around crypto regulation, under pressure to do something with crypto exchanges bringing that in. whether it was the i.e. x approving therefore coin base cracking them to come to the table and get fcc approval. cheryl: operate in the winds. charles: we don't know. it looked like based on what i am hearing is joint venture between ftx and i.e. x, was ironically that he was going to get his hands on quickly until the ftx part of this imploded. i've not heard the rest of it. i tell you, i have known andrew for years, he is a friend of mine but he's not going to let him go. cheryl: what lawyer thought this was a good plan. charles: it was -- to tell him not to do it. cheryl: we will be right back. ♪ what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq we all have a purpose

tony blair was on stage and they were dressed up in their suits and sam bankman-fried is there in baggyd it t-shirt and he was there with maxine waters but if you look at this and say what a bizarre scene ellicott the money that is contributed. so here is my concern when you give this much money to democrats those that may investigate you do they really do their job? think of the moneyheir campaigns and do they give a pass or will democrats be tough? >> what do you think? [laughter] >> and the idea they gave $300,000 to the house financial services committee to make a fair assessment one committee member did give the money back for $2900 so good for him but the elections are over. shouldn't members of congress give the money back? if you accepted money from the organization wouldn't you give the money back? >> when you have this many victims that sam bankman-fried is still there many as the bankruptcy progresses i would give the money so the victims could get their cash back and is not everybody tom brady and gisele. >> but here's another part look at the democrats and leadership in the

john, sam bankman-fried, he continues to suck all the oxygen out of the room., shadow over the entire crypto world. so my question is, why isn't he doing the perp walk yet? really, it is just, you think of all these sort of things and i just don't recall bernie madoff making the rounds like this. from journalistic point of view you want to interview these folks but people are wondering billions are missing why is this guy walking around? >> you brought up bernie madoff. he was arrested the day after he confessed. sam bankman-fried has confessed in his twitter feet, i don't know, two things you can do. what you do, arrest now, there is enough information under 18 usc 43, that is the wire fraud statute there is enough in the wire fraught statute. he looked like crypto safe year and goes to blockfi, i give you the loan but you have to deposit your client money in my ftx account. of course he steals that money to run his ponzi hedge fund. so if i were in charge i would have had him arrested, introduce him to a three-by-five cell. remind him what russ who did much l

new ftx ceo john ray, who oversaw enron's brupgs is out with a fiery commentary aimed at sam bankman-friedling writing in part, quote, listen to this, never have i seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. he points out faulty oversight led by a small group of inexperience ed, unsophisticated and potentially compromised individuals calling the situation unprecedented. the ceo of binance, which remember briefly planned to take over ftx, joins "squawk box" this morning with his perspective. >> sam foes that he was using the user funds to do trading, and he has publicly doing this for a while. nobody else knew until recently. a small number in ftx knew most of the normal employees probably didn't know i think that's the likely situation. >> the house financial services committee calling for a hearing into the collapse of ftx this week and joining us now is the chair of that committee representative maxine waters congresswoman, great to see you again. thanks for joining me. >> i'm pleased to be withyou

sam bankman-fried out as ceo, resigning. the process now to figure out what went wrong. still in the early stages, but does it fgive crypto, morgan, a permanent black eye. >> that's one of the questions being asked right now. o i'm morgan brennan. stocks are mixed the dow is down fractionally back towards the flat line, about 31 points. the nasdaq is higher by 1.9% powered higher by tech yet again. the nasdaq and s&p both on pace for their best week in five months i should also note that the s&p is up 9/10 of 1%, moving closer to the 4,000 mark. again, amazon and alphabet hired today, up 10% on the week. check out meta that's up more than 25% so far this week. 26% right now. what is dragging on the dow. united health is down 5% but that's $30 a share meaning it's taking nearly 200 points off the dow on its own. cigna, humana, also down big that has investors rotating out of the health related stocks right now, and other defensive sectors as well, i might add pretty much anything with health in the name, though, that's getting hit hard today, tyler. >> morgan, our next gu

sam bankman-fried has been a very obvious charlatan for quite some time. i think if you paid any attention to the kind of messaging he was sending and the whole effect of altruism line of argument that has been advanced by a number of people in the media many of whom as it turns out were either adjacent to or part of funding that came from these sources the question is whether we will demand any accountability from the politicians in question and certainly you can't trust politicians or the regulators involved who seem to be out of touch when it comes to this stuff if they have the kind of compromise nature of taking this money at the same time they are expected to have the oversight we need of these new advanced approaches and i think unfortunately in this case there's going to be a lot of people who end up tangled in lawsuits and back-and-forth. stuart: it goes on for years, lawsuit after lawsuit after lawsuit. that's the way it is. senator mitch mcconnell reelected as house minority leader, defendant senator rick scott, senator josh halley doesn't seem

sam bankman-fried left at the same time. police say they are investigating whether there was criminal misconduct in the collapse of the exchange. let's go to joanna. where do we stand on this saga? i'm having a difficult time keeping up. joanna: there are so many moving parts. one thing is we will be watching for extra info from the bankruptcy related filings because they did it so quickly there's not a lot of information and there usually is. we will be watching for that in coming days. we will also watch for second order of facts from other counterparties, anybody else who may have been affected. it is looking a little fragile out there, and especially with the prices on cryptocurrencies, manus had put on solana and it is down 20% again today. bitcoin is below $16,000. we will also be watching for what happens with these police and regulatory investigations. what are the police going to do with sam bankman-fried? are they just going to talk to him or will something else happen? we are watching to see what actions will be t

ftx says sam bankman-fried, its founder, ceo, has resigned as his role as ceo.ain to assist in an orderly trans transition and they have appointed john jay ray iii as ceo and once they hand it over in the transition and the ftx subsidiaries are not included in this chapter is 1 bankruptcy, so that includes ledger x ftx digital, also ftx always, and ftx express pay. remember, that this does not include ftx u.s. , which is the u.s. arm of the crypto exchange. this is all international. this filing looks to be taking place here in the u.s. but it really is just a stunning collapse of a once high flying, one of the largest crypto exchanges in the world and really in a matter of four or five days, it's over. it's done. now here is the contagion effect because i just heard your interview with mark mahaney and they were talking about 2008 comparisons and there is a lot of comparisons to that mortgage, the mortgage bond debacle. a lot of people are stepping in saying what kind of exposure and relationship they have with ftx, blockfi being the latest saying we were shock

sam bankman-fried invests $25 billion mostly into sequoia but other vcs.ad article that fried had a survivor complex that ftx could eclipse big four banks, bank of america, jpmorgan, citibank and jpmorgan chase. you raised success for raising money for small companies. i salute you. but i'm pissed off with the role of the vc world with in all of this. what is going on? sequoia is the smartest, richest, putting out puff pieces about this guy? shouldn't they be doing more due diligence. >> this is really tricky one, i loaf before the show i don't want to ruffle any feathers. ceo quo did you see the letter they published they talked about the size of their position in ftx, and what proportion of their fund it was. i recall it 3%. they're owning this was an error. they talked about some of the short falls in the ecosystem but they also talked about risk management, sizing bets accordingly, doing the best they can. charles: here is with my problem, sarah, in the article sequoia put out couple months ago, bank man fried. i'm skeptical of books, i actually do not

we do know that sam bankman-fried is under serious legal scrutiny. ongoing investigation from the cftc and the sec. emily: could he face jail time here? i cannot believe i am saying that. hannah: it is unclear. it will come down to whether he mishandled customer funds. they are also looking at the relationship between ftx and alameda research. emily: we are also talking about a potentially tectonic shift in the crypto landscape. what are the ripple effects? hannah: everybody is reeling right now. the market is struggling. ftx and sam bankman-fried had an incredible reach over the industry. he has invested in multiple companies, he has built out multiple companies. ftx also does a lot of business with different players. so it will be interesting to see which dominoes fall and how quickly. emily: what are we hearing from the other exchanges? here we are now. what is the word from binance? hannah: binance, cz, i think they are basking in the victory right now. emily: victory in the crypto space is not necessarily long lived. how do we know who is swimmi