Unchained

Jesse Powell and Kevin Zhou on How FTX and Alameda Lost $10 Billion - Ep. 423

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Kevin Zhou, cofounder of Galois Capital, and Jesse Powell, cofounder of Kraken, talk about why FTX collapsed, the warning signs, and whether it’s a catalyst for self-custodial adoption. 


Show highlights:
  • the root causes of the FTX collapse, according to Jesse and Kevin
  • whether there were warning signs of all the risks that were to come
  • the importance of learning from mistakes, even for new people in the space
  • Kevin's response to the stuck funds in FTX
  • the debate about utilitarianism and SBF's effective altruism
  • whether the philosophy behind founders matters
  • Kevin's and Jesse's theories of how FTX and Alameda lost billions of dollars
  • how Alameda and FTX's books were commingled 
  • whether people will start using self-custodial wallets
  • whether the fall of FTX vindicates BTC maximalism
  • whether regulation has been beneficial or harmful for American customers
  • the role of venture capital firms and their "mixed incentives"



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    Kevin:

    • Twitter
    • Previous Unchained episodes:
    • How Traders Are Thinking About the Merge — and a Potential ETHPoW Chain
    • Why Kevin Zhou Believes Ethereum Will Have 3 Forks After the Merge.
    • The Chopping Block: Kevin Zhou on Why He Knew Terra Would Crash


      • Jesse:

      • Twitter
      • Previous Unchained episodes:
      • Jesse Powell, CEO of Kraken, on Drawing a Line With Regulators


        • Episode Links

        Previous coverage on Unchained of FTX:

        • Did the Bahamian Government Direct SBF and Gary Wang to Hack FTX? – Ep. 422
        • The Chopping Block: Why Lenders Didn’t Liquidate Alameda When It Was Underwater 
        • Erik Voorhees and Cobie on Why FTX Loaned Out Customers’ Assets
        • The Chopping Block: FTX: The Biggest Collapse in the History of Crypto?
        • Sam Bankman-Fried on How to Prevent the Next Terra and 3AC


          • FTX Collapse:

          • First declaration document
          • Unchained: FTX Bankruptcy Overseer Says Company’s Collapse Is Worst He’s Ever Seen
          • Unchained: Bahamas Regulator Directed SBF to Transfer FTX Assets to Government Wallet
          • SBF tweet: FTX files for Chapter 11 bankruptcy protection
          • Vox interview with SBF: Sam Bankman-Fried tries to explain himself
          • NYT: How Sam Bankman-Fried’s Crypto Empire Collapsed
          • Bloomberg: Crypto Hedge Fund Galois Confirms $40 Million Exposure to FTX

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            UnchainedBy Laura Shin