Unchained

Erik Voorhees and Cobie on Why FTX Loaned Out Customers’ Assets - Ep. 419

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 Erik Voorhees, founder of ShapeShift, and Jordan Fish, aka Cobie, crypto investor and host of UpOnly, talk about the collapse of FTX. 


Show highlights:
  • the links between FTX and Alameda
  • what kickstarted the blowup of FTX
  • why Erik and Cobie think that Bankman-Fried's behavior was “sociopathic”
  • why the $10 billion hole is so shocking to Cobie considering the advantages that FTX had as a company
  • whether this would have ever happened if the prices hadn’t plummeted in the bear market
  • the tension between advocates of privacy and those who want to limit criminal activity
  • why Erik believes that SBF’s donations to both political parties are bribery
  • whether regulators can prevent an exchange from collapsing
  • whether Changpeng Zhao did a better job at investigating FTX than anyone at the SEC
  • the likelihood that this will result in criminal charges
  • how blockchain technology is the solution to the problem of centralized exchanges doing things in the dark
  • Tether’s decision to freeze USDT owned by FTX
  • Erik’s response to Bitcoin maximalists who say FTX was caused by altcoins
  • whether it is a mistake for exchanges to issue their own tokens
  • how big the contagion could be in the industry
  • why nobody should leave a significant amount of their net worth in a centralized exchange
  • Erik’s message to regulators
  • whether SBF was aligned with the values and the ethos of crypto


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    Erik:

    • Twitter
    • ShapeShift
    • Previous Unchained episodes:
    • Why ShapeShift’s Erik Voorhees Thinks Toxic Bitcoin Maximalism Is Bullshit
    • Shapeshift’s Erik Voorhees on How Crypto Will Separate Money and State

      • Cobie:

      • Twitter
      • Substack
      • UpOnly
      • Previous Unchained episodes:
      • Cobie and Chris Burniske on How to Navigate a Crypto Bear Market



        • Episode Links

        Previous coverage of Unchained:

        • Sam Bankman-Fried on How to Prevent the Next Terra and 3AC
        • The Chopping Block: FTX: The Biggest Collapse in the History of Crypto?


          • FTX Collapse:

          • FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall
          • SBF’s video talking to regulators
          • Unchained coverage:
          • FTX May File for Bankruptcy After Binance Walks Off the Deal
          • FTX Needs $8B to Meet Investor Withdrawals: Report
          • Tron Founder Justin Sun Says He Is Working With FTX on a Solution
          • US DOJ Joins SEC and CFTC Probe of FTX
          • FTX-Issued Wrapped Solana Tokens Could Add to DeFi Contagion: wBTC Creator
          • Sequoia Capital Writes Off $214M FTX Investment to Zero



            • Binance’s dropped deal with FTX

            • CZ’s announcement
            • SBF’s announcement
            • Binance’s merkle-tree proof-of-reserves
            • Unchained coverage:
            • Binance Set to Buy FTX Amid Liquidity Crisis
            • SBF’s Net Worth Plummets 94% In One Day: Report
            • There are Rumors that Alameda Went Down With 3AC in Q2
            • Alameda Owes More Than $30M in DeFi Debt
            • Coinbase and Genesis Declare No Exposure to Collapsing FTX 
            • Binance Might Have Triggered a Liquidity Crisis as FTX’s Main Wallet Lost 290K ETH in Two Days
            • Binance to Liquidate Millions Worth of its FTX’s Token Holdings
            • FTX’s Stablecoin Reserves Hit One-Year Low
            • Alameda’s Balance Sheet Sparks Controversy


              • Crypto regulation

              • Industry Leaders Debate How to Regulate DeFi
              • Bankless debate between SBF and Erik Voorhees 

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                UnchainedBy Laura Shin