 Welcome everybody to digital asset news today. I want to talk about something. I've really Been trying to stay away from as much as possible because I mean there's not really much we can do but to talk about Sam bankman free and FTX things that are going on there But I could not resist talking about this nice little nice little snippets of Bernie Madoff's old lawyer comes out and Talks about what's in the store for Sam bankman? Why he should all the things that he's saying is going to be detrimental against him And if he should and will cut a deal and also take a look at how Kevin O'Leary Mr. Wonderful goes before Congress and testifies and says some Well, I'll have you listen and then also I've been critical of Binance lately But the things they just did yesterday makes me pretty bullish and happy with the things that they are doing So even though we talked some things about on the show about things that are potentially happening We have to peel back the layers also take a look at how Canada is banning leverage And this is going for all of their crypto exchanges and we'll talk quickly about yesterday's tax video little update Then of course, we'll do a little Q&A at the very end. So first things first. Thanks for stopping by. I do appreciate it Let's just go into before we go to main story Let's talk about the big I guess this might be the big news today 50 basis points hikes From the Fed Reserve and everybody's been talking about it. So, you know what? I'm not gonna spend a lot of time into it. So there's a couple of things first of all Just so you know that today the price of Bitcoin went up, which means You can get less atoshis now than you could before so just for a dollar as of a couple days ago It was five thousand eight or any fives atoshis today. Let's do a little refresh For one dollar you get five thousand six hundred thirty six atoshis So just something to keep in mind as you're thinking about dollar cost averaging also for the market itself today We can see well, let's just go over here Coin gecko Of course with the 50 basis points. It really was all predicated on the CPI numbers which came out it's I guess lower than expected and of course there was a big rally and now today Fed Fed chair comes out strong pal and says hey, we're gonna raise the 50 base points Which is what everybody knew anyhow and that's it So I guess when people say everything's priced in I know if it is but you can make a quite a little bit of Chunk of change if you were ready to sit around and do some some scalping has been trading That's not my thing and also take a look at what's happening in NAS deck is down as well and also S&P 500 but if you take a look Over the last five days For the S&P 500 it's looking pretty good actually a month and six months in all honesty I know we talked about how you know bearish things are but I mean things are held holding up Reasonably well of course if you go back over a year you're gonna see and not so much You know not not so great But if we even zoom out even more like the five year on the S&P 500 It's looking pretty good and also we take a look at NASDAQ same thing five day one month Six months six months not too bad, but then one year and five years Hey, I'm not looking too shabby. So that's what's going on the market 50 basis points expect more volatility Maybe there's a sense of rally. I have no idea, but then let's go into this part Bernie Madoff's lawyer I thought I found this interesting Just because of The insight a person can have and it's almost the same thing like this Sam Bankman is kind of like It's kind of like our Bernie Madoff for this generation So he's gonna go over a couple of things first. He's gonna talk about time in prison, which I personally was Skeptic as to how much time he's going to be in prison He's gonna talk about how it's a potential that he could cut a deal and who is going to actually Prosecute this because it's gonna be a Department of Justice the SEC the CFTC Who's gonna take the lead for this one? And then the last one talk about is it should Sam be talking? So the first part here that's at around 140 or so right around here Let's take a listen. He's gonna talk about his prison time and what's in store because remember with Bernie Madoff He spent his final years in prison. So just take a listen Cut my customers and lenders money laundering violations of current campaign finance laws There are eight criminal charges here. What is he looking at if convicted? We won't be around if he gets the maximum let me put it that way and you're much younger than I am it is not likely That defendants get the maximum sentence with the mail fraud wire fraud the conspiracies the maximum is 20 years and Judges of course in sentencing. I'm gonna factor a lot of things in none of which we know about at this time But he's facing many many many years in prison The same meant that Cameron So not surprising 20 years, but you understand like when you use something like that 20 years for a young Young person like Sam. I don't think he's gonna serve all 20 I think I time off with good behavior and then maybe gets a little house arrest in one of his mansions not too bad I'm still skeptical about what the potential time frame can be but the bigger question is then is Who's going to actually prosecute this as we move forward because there's a lot of things that could that people want answers to and Let us take a listen to what he says here That he's exploring his legal options right now. What what do you think? He and his team are doing and discussing. I mean first. There's the issue of whether he gets extradited, right? Yes, I don't think that's gonna be an issue at all But what his legal team is thinking about now and in fact is in Where does he go from here does he decide to fight the charges? Does he decide he wants to cooperate and cut a cooperation deal with the US Attorney? The SEC and the CFTC in this are I don't want to diminish their role Because most of the work done here is done by those two agencies Not the US Attorney's office and that's not diminishing the role of the US Attorney But the SEC and the CFTC have the expertise in ferreting out the complexity of these types of transactions so In order to look at it from that perspective what will generally happen is the SEC and the CFTC will step back Their actions will be stayed in the words the Department of Justice does not want the civil cases to go ahead Because the Department of Justice is concerned that if the civil cases do proceed ahead it will impinge negatively on the ability to carry out the criminal case I was wondering about about the interplay of all of these regulatory agencies at this point Everybody's on this and whether they they ultimately work together. So that that answers that question They do work. Yeah, I'm sorry. They do work together, but now that you've got three proceedings The Department of Justice is going to want to carry the ball here because they do not want their case Disclosed in the civil action where there's far more discovery and far more ability to learn what the government's case is Criminal case then there would be if there was only one criminal case Yeah, so there's gonna be multiple criminal cases Multiple people gonna be involved and of course multiple agencies in the last one That was interesting as well as is because Sam has been on Twitter Spaces He's been on CNBC MSNBC and it's almost like he's on a book tour with the amount of things that he's talking about and to me I just think is this like a genius move that no one has ever thought about to do and just put out there and go Hey, I don't really know what's going on and and of course I'm in the court of public opinion. So everything's good. And of course, this is what's already made us lawyer says about that You know, we've also had these this unusual development like of hearing from Sam Bank and freed over the last few weeks Numerous times. He spoke with our colleague Andrew at the deal book conference. Good morning America I know I know you publicly Reprimanded him for that and would tell your client not to do that but but he it sounds like what his thread is that There was no intentional wrongdoing and and he wasn't aware of any Commingling of the funds from from FTX customers to Almeida research. How difficult is that going to be for him to? to argue Well, the first time I was quoted on this case. I specifically said he should shut up I use those words because yeah, the only people Who are listening to what are you saying are the regulators and the prosecutors if he's out there trying to convince the general public? That he did nothing wrong. No one's going to pay attention to him What's going to count is what he says and what can be used against him in court So look there's all that part There's all these things that are going on behind the scenes, but here's the reality of the situation this is Sam right here and Sam has been on a lot of different places and saying you know what I don't think I'm even said I don't think I'm gonna be arrested I don't think I'm gonna face any running side. I didn't know I didn't know what what I was doing I had no idea what was happening and of course here he is leaving the court in handcuffs and just amazing that Things they happen gradually then suddenly and then here we are So let me what you think about that in the comment section and then also I want to finish up with a couple of things first of all What Bernie made us to lawyer was talking about was he said well the CFTC and SEC are probably gonna back off a little bit Let the Department of Justice do their thing however The SEC head chair Gary Gensler. There he is Gary Gensler friend of the show he He's gonna have to answer himself for some wrongdoings potentially potentially this is Rep Tom ever and he says So Gary Gensler knows that FTX was fraudulent from its inception because remember the SEC was investigating FTX for this whole time They were putting together an investigation bringing Sam in talking to everything else But you know just didn't pull the trigger fast enough He says this is egregious considering he had more means with Bankman Freed than anyone in the space discussed a crypto regulatory framework Designed to benefit FTX alone and of course the people that he donated To for their political agendas, but that's another video and Tom says he will be held accountable Now, I don't know if that's gonna that's gonna happen seems like people can talk big and then things fizzle out But I hope Tom's right. I hope he brings in Good old Gary who protects us harder and asks him the tough questions and says, what are you doing here? Maybe might be time to step down not for sure and also to finish this up I want to play this for you and just tell me if you think that Kevin O'Leary who I might remind you was paid 15 million dollars to be an FTX spokesperson had met with Sam Bankman multiple times and Was called before the House Committee to testify about This his role and FTX just take a listen this 38 seconds and tell me if you think that Kevin is right on the money Or a little bit off base Why do you believe FTX failed? I have an opinion I don't have the records here it is These two behemoths that own the unregulated market together and grew these incredible businesses in terms of growth We're at war with each other and one put the other out of business intentionally now maybe there's nothing wrong with that maybe there's nothing wrong with love and war but Binance is a massive unregulated global monopoly now They put FTX out of business. Why do you believe FTX? So did Binance put him out of business or did FTX put FTX out of business and also It's some pretty good big keywords. It's like a dog whistle, which is monopoly and global power I gotta tell you US Senate does not like to hear those words. So when he talks about that, I gotta tell you I got to stand up and clap To to Kevin O'Leary and say that's a that's a pretty good way to to get people to deflect and shift attention But I could be wrong. Let me understand about that in the comment section that Includes that part of the the Sam Bakeman freedom. What's going on? So let me know what you think and then here's some good news I've been pretty critical about Binance lately and for a good reason. I mean, there's been some pretty odd things going on and I think that in our space we should be spreading a little bit more fun because remember We don't work for the exchanges the exchanges work for us. That's pretty much how it's supposed to be right so If we come out and we talk about, you know, there's some things that we have questions about and and we need more answers What's what's the deal people say? Well, you shouldn't do that because you know, then that might disrupt the market That went out the window with Celsius and Voyager and block fine FTX. Sorry, so I'm very critical But here's some good news. So this just happened yesterday and this is from the man himself CZ Binance I have no problem with CZ or by answering anybody else just trying to get to the bottom of things And there was some massive withdrawals yesterday. So we saw some withdrawals today Net 1.1 for a billion ish. We have seen this before some days We have net withdrawals some days with net deposits business for us as usual I actually think it's a good idea to stress test withdrawals on the centralized exchange on a rotating basis and To break this down even further it wasn't that was the net but you understand there was Here's the inflow and outflow the outflow excuse me the outflow and crypto With six billion dollars in a 24-hour period because people were scared and rightfully so which let's be honest If there was that much on on the exchange, there shouldn't be that much on the exchange anyhow There should be no problems with them taking their crypto off. There should be no problems because that's what You're supposed to do you're supposed to put it into cold storage and not just leave it there on an exchange for it to collapse Then go, oh, sorry, you know, we came out and we said that's a problem so there was a major outflow but there was a big inflow as well and Nothing happened like when when there was around the bank with fdx Quite a bit of quite a bit of funds. You'd think six billion would be quite a bit didn't really happen So or it didn't really affect Binance going forward and see he says the cost of network fees to run these tests but keeps the industry healthy Exchange business is simple. Da da da So I will just say this now that I think about it the outflow Okay, the bigger question would be this if there was an outflow of six point almost six point two billion and the inflow Was half of that or a fourth of that. I wonder how well it would have worked Just a just a question. So let me think about that in the comment section But I mean look if you're talking about a stress test, they survived this one Let's see how it works out and then also moving forward as far as tests. Oh, Canada Canada, I don't really know how I feel about this one. I'll make some input from you Canada's to prohibit crypto firms from offering leverage trading to citizens This is following the recent events of course fdx and block 5 y during Celsius away that so crypto platforms Applying for registration in Canada will have to agree to tighter rules in the country including a ban on margin And leverage trading firms will also have to hold the assets of Canadian clients separately From their proprietary business the corning to expand in terms outlined by the CSA and the Canadian Securities Administration So I gotta tell you the second one. I got no problems with this This makes a lot of sense. This is what we should have been asking for the whole time And I just want to ask you a quick question Does anybody have a problem with a government stepping in and saying you must? Separate your funds. You can't intermingle them and we're gonna make sure you don't intermingle them Or do you think that we should just let it all go and not have any regulation? That's a question for you And the second thing is it's about leverage and on this channel. I mean, that's my my fourth rule Don't use leverage. I mean people use 1500x and I get emails all the time. Hey Rob. I lost my house What do I do? Hey Rob? I lost my kid's tuition money. What do I do? Hey Rob? I can't pay for my mortgage What do I do? I don't know stop using leverage first of all and of course, that's what they talk about But on this one it kind of goes against a credence because can we not just I mean I don't know where you're from but couldn't we just all just take a flight To Las Vegas just start gambling everything away. I mean as anybody come up to and go. Hey We hey Pete we noticed that you you gambled 5,000. Is that okay? Do you do you need to take a breather or a break? Oh, let's let you gamble it all away. So on these things. I'm like, I know we shouldn't use them as far as leverage 1500x I mean 2x 3x. I don't do it, but it's up to you and I kind of feel like Maybe this is kind of impinging on freedom, of course Canada also came about and they stopped the whole that that truckers Truckers safety nets when there was a big protest and they stopped the go fund me page used by Used by these truckers to able to fund their their campaigns and stopped everything. So that goes against that as well But to get back in the leverage part. I have always talked about how I just hate leverage and how I think it destroys I mean destroys people but the question is is it does it destroy markets? This is a this is crypto quant on chain analysis great website. Check it out crypto quant comm It should be a link in the description and one of these is Estimated leverage ratios for all exchanges. So if I blow this up anything above two Or zero point two is considered extremely high Back in the day and you can see right here that Even when we were at an all-time high all-time highs for Bitcoin's price was 60,000 we were at zero point one a which was teetering on there And of course we came up to here where the all-time high 66,000 We're almost at zero point two and then when things started to go Down then we had a ton of people going. I know what to do I'm gonna short it or I'm gonna go long and then of course people got wrecked and saw people just lose it But does this really affect the markets? I think in some way it does however Like over here as far as like leverage it goes when I mark it's sucking right now And there's nothing to do with leverage. It has everything new with centralized exchanges. So I'm kind of I mean We're still at a very if you look at it zero point G zero point two seven coming down from zero cheese We's zero point four. But the question I have to ask you is Is it really feasible or should we be banning all leverage for every single person out there and should governments actually be doing that? Anyhow, let me just say about that and then lastly and we'll wrap this up yesterday's tax video. We did a good video with With David Kemmerer from coin ledger and we talked about crypto taxes most in the United States But they use their crypto software is you know throughout the entire world Canada and different parts of the world as well and one of those questions that we kept getting asked was well first of all We're talking about tax loss harvesting and of course if you have losses this year You need to watch this video if you have any loss trust me. I'm pretty sure you have losses this year I'm just gonna go out on a limb and say you have some losses watch yesterday's video ah Link in the description, but there was two things and one of those things was Well, how much losses can we take we didn't answer that? So just so you know as far as capital gains you your losses offset your capital gains up to $3,000 any net losses exceeding $3,000 can you rolled forward into future taxes? So here's an example you bought a bunch of Solana, right? And it went up and you were you bought it you bought $1,000 worth and Then it's you know Six X and then a quaint came crashing down and you're and then it went below a thousand all of a sudden you saw $500 right and went five oh, so that's like a 50% loss right there You have $500 you can use all those for net losses However, if for some reason like let's say you bought Bitcoin at $67,000. It's okay. We've all been there and It drops Massively you bought one whole Bitcoin now. It's at 17,000 you lost like $40,000 somewhere on there and Yeah, yeah, 50,000. Excuse me. Sorry. So for that one you can only use $3,000 Per year now it rolls over Moving forward and then just so you know as time goes on that's just for Your personal but capital losses like we just talked about can be used to offset an unlimited amount of Your capital gains for the year So let's say like this one Mitchell Mitchell held Apple and a 3M for a year He sells an Apple stock for a $5,000 profit, but he sells a 3M for a $6,000 loss Well, guess what? I was only on the hook for a thousand actually he's got negative a thousand which you can use So just keep that in mind moving forward and we're going to get David back also some CPAs they answer some questions and the big questions that I have been getting is stuff like this Which is hey Our crypto losses on FTX and block via tax write-off great question. How do we do that? How much is crypto tax in Canada? Five ways to avoid crypto tax in Ireland Do you have to pay taxes if you didn't sell and stuff like that? So we'll do an educational series moving forward and that's ladies and gentlemen will conclude it for today's video So look that's it now We're gonna do a little Q&A like this video thumbs up subscribe all the good stuff and Now we'll get to the best part the Q&A. So we had take off take off. Thanks for stopping by appreciate you Now it's gonna go Q&A and answer all your questions the best my abilities As we move forward so right now grab all your questions and let's do this. Let me give her this banner Jay on chow says Binance put FTX out of business and truth It was FTX who stole money and simply got caught Yeah, Sam use customer money for political nations and funds were in one pool different Tools low Sam killed FTX. I have to agree with Jane challenge this one Of course, hey Rob can't believe it takes a multi-billionaire company use quick books For their accounting may as well when using cookbooks. Well, they did cook the books. So you're right Yeah, Ireland better read that exactly Let's see Yeah, I panda pie says for the rate hikes I find Powell is doing what he said Didn't change a speech still target in 2% inflation will do a possible no surprise It's a surprise to the pundits who think that you know the top is in I mean the bottom is in and it's gonna just You know be all awesome moving forward remember And there's a very popular image being skirted around and I am Not it's not beneath me to show this graphic Because it doesn't make a lot of sense. Let's see Rate hikes. Where did I put it? Dollar there it is fed pivot. So it looks like this only I'm sure you'd like to see what I see it looks like this. So Just remember that when the Fed pivots, I mean it's it sounds awesome But even one of pivots it still goes down a great great amount. So just be aware of that And it's because they got to break stuff before they can say okay mission accomplished So just be aware that even though when they pivot, it's like a little more pain to go through But you know, if your delicose averaging good for you Put your big boy pants on one leverage and buying all yeah, put your big boy pants on because usually you don't you know I'm a short left so Yeah Neal says hey, don't know anyone can trust exchanges every cycle they messed up up whether it's a hack It's true actually no gox and I mean even bias had a hack Using user funds over leverage losing clients funds. You can't trust him Yeah, you know gets rich with the exchanges The exchanges themselves and that's the thing and I gotta tell you like if you wanted to make Something just don't make sense to me like if you're Sam Bankman free and you just know like look I'm just gonna go serve like five years in jail and then maybe I get three years Probation, but you know eight years isn't bad to be a billionaire You know all that money seems to be just gone. We don't know what happened to it. So I don't know Doth Mike's is leverage is most likely increasing this because of more availability. He's of access by more and more the public I can say Yeah, it's it. Hey, that's it people People need personal responsibility screw regulation. Yeah, yeah, I mean Nothing really surprises me anymore. So yeah, Jeff says how is Alex still for me Alex Machinsky? Good question, man. Good question. There's a difference between See at least they can account for some of the funds and it's still still mismanagement But the question is was there an illegal procedure moving forward, I did just see the the coin list and it looks like Don't quote me, but it looks like Alex took out 18 million dollars with the with the funds 60 days before the collapse and that could just be a Amazing owner's draw, but who knows? Let's see I think Yeah, Bobby still went here if I'll be able to get taxed up from Voyager, who knows? I don't know That's it so look I must be doing my job pretty well because the one has questions for me great All right, everybody. So thanks for stopping by appreciate you like today's video thumbs up subscribe all the good stuff And that is it for today. So thank you for stopping by appreciate it And I'll see you guys on the next one. I'll the oaths. Have a good night. Bye. Bye