Unchained Erik Voorhees and Cobie on Why FTX Loaned Out Customers’ Assets - Ep. 419
Nov 11, 2022
Erik Voorhees, founder of ShapeShift, and Cobie, a crypto investor and host of UpOnly, dive deep into the shocking collapse of FTX. They discuss the alarming relationship between FTX and Alameda, highlighting the $10 billion deficit and why they view Sam Bankman-Fried's actions as sociopathic. The conversation touches on the implications of regulatory failures, the importance of blockchain transparency, and the risks of keeping assets in centralized exchanges. Their insights also explore how this event may reshape the future of crypto custodianship.
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Egregious Behavior
- Sam Bankman-Fried’s (SBF) truly egregious behavior was lending customer money without consent.
- This was compounded by his public condemnation of others for similar practices.
FTX Bailout of Alameda
- Alameda likely suffered significant losses during the Luna-Celsius-3AC meltdown.
- SBF may have used FTX customer funds to bail out Alameda, hoping to recoup losses.
SBF's Deceptive Persona
- SBF presented himself as pro-regulation and a "goody two shoes" figure in the crypto space.
- However, his actions revealed a different, more deceptive side.