Coffeezilla Accidentally Got SBF To Admit to Fraud

[BitDane]

As the title stated the third interview[1] of Coffeezilla to SBF has come to fruition when he made SBF to accidentally  admit fraud by saying that all funds are stored in a single "bucket". The client who do not agree with any marginal trading or hedge funds and that was promised to have 1:1 reserve cannot withdraw and the fund is nowhere to be found.

Altcoin Daily had made video[2] compilation  and explanation how SBF admit fraud during the third interview of Coffeezilla to SBF.

Here is the Altcoin Daily's video timestamp[2]

Timestamps:
0:00 - SBF has been denying FRAUD for weeks!
1:56 - SBF know about FTX co-mingled funds?
3:54 - SBF Finally Admits to FRAUD?
4:09 - Caroline has been talking
4:43 - SBF Finally Admits to FRAUD (pt1)
6:16 - SBF Finally Admits to FRAUD (pt2)
8:57 - SBF Finally Admits to FRAUD (pt3)
10:28 - SBF Finally Admits to FRAUD (pt4)
12:00 - Was FTX always committing fraud?
12:18 - SBF admits FTX user asset UI was fake.


Coffeezila's Full Video 3rd Interview on SBF[1]
Here is the timestamp copy the third interview of Coffeezilla to SBF[1]

0:00 Intro
0:18 Background to the Call
1:05 The Plan
2:12 Failure 1 - New York Times
4:30 Failure 2 - George Stephanopoulos
7:06 Failure 3 - Coffeezilla
8:38 Lessons Learned = The NEW Strategy
9:33 3rd Sam Bankman Fried Call Begins
10:04 Were you treating client assets differently?
10:31 Focus on Client Assets Only
10:51 Sam Tries to Deflect to Alameda
11:26 Can You Explain What That Means?
11:40 Separate Legal Agreement
12:05 Let's Focus Only on the Assets that Terms of Service Applied to
12:29 Sam Cites Billions of Withdrawals
13:32 Is there 1:1 Assets for Customers Who Didn't Agree to Margin?
14:19 Sam Finally Explains "Fungibility" of Funds During Bankruptcy
15:41 There Are No Buckets
16:38 During Collapse We May Have Allowed Withdrawals
17:27 You Can't Treat Everyone Equally
17:51 You Monopolized The Discussion Coffeezilla, Stop Grandstanding
18:40 My Reaction to Sam's Blowup
19:15 I Got What I Was Looking For
20:13 Analogy to Traditional Finance
21:08 Everyone was Subject to the Same Risk
22:31 Did I Monopolize Sam's Time?


It is really a great job done by Coffeezilla in strategically making SBF indirectly admit that FTX is committing fraud to its client when he made SBF stated the fungibility of Funds during the bankruptcy and that funds of different risk level are stored in the same wallet, that action does not comply with the Terms and agreement of FTX to their client thus showing FTX has been committing fraud since the beginning.

The two video is a good watch and it is great to see how Coffeezilla exposed SBF of the fraud he is denying for weeks.


[1] https://www.youtube.com/watch?v=4o_jPzBZSIo
[2] https://www.youtube.com/watch?v=SCW89n9ooRY

[1714683392]

1714683392

[1714683392]

1714683392

[stompix]

That was one of those moments when the bad kid regrets not listening to his parents, especially since in this case both were teaching law at Stanford.
I said were because it seems they were fired, I don't buy the retirement story:
https://decrypt.co/116770/sam-bankman-fried-barbara-parents-stanford-law-teaching-break

As for SBF, we know he was committing fraud or at least misappropriation of funds, he knows he was doing it, the only problem is that we need t see him in court first, and as we look at Kwon and Mashinsky is going to take a lot of time to get SBF into one.
But as a side note, damn all those "I think" were annoying, seriously, you think? you're planning to change the world, you go to senate hearings, you have billions of clients' money in your pockets, and you think, you don't know! And this guy was praised as a genius!

[NotATether]

This is damning evidence if it's true. We will probably see regulators and forensic experts Area 51'ing this forum, the YouTube channel, and the news websites in the process of harvesting all this evidence against him. 

[franky1]

the main "gotcha" moment of the interview was at
13:30-19:00 of the third video
admitting to co mingling and that he didnt separate them into separate pols/wallets/buckets, and that SBF didnt want to separate them by disagreeing that he should have coded up a new process to separate the usergroups


there is the main part
https://www.youtube.com/embed/4o_jPzBZSIo?start=1090&end=1140
'we process withdrawals as we normally do..
"at that point there was a liquidity hole"
"if you think we should have frantically coded up a new withdrawal process i disagree with you"

FFS there should have been a withdrawal process of separation of funding pools/buckets right from the start over a year ago

[serjent05]

This is the FTX and User agreement clause where SBF got f**k*d up



It is a clear fraud when the company did not comply with the agreement and moved the funds of people who did not avail of the options of lending, hedge funding, and marginal trading. But it was clear the clause was not followed.  This is how FTX defrauds its clients and SBF is well aware of it even though he denied the allegation for weeks but then just like a fish, SBF was caught admitting through the words his mouth has uttered.

[Gyfts]

So he essentially admits that there were not 1:1 assets and that user deposits in FTX trading could withdraw from the same user funds that the FTX exchange was operating on, which is to say there never existed a 1:1 ratio of underlying assets, hence the liquidity issue. He said there was a "generalized withdrawal" when everyone began to withdraw so the guys that were told they had their funds 1:1 with assets got screwed over.

He's skirting most of the questions by feigning ignorance, as if he couldn't possibly be aware that his company never kept true to their own terms of service and had user funds dabbling into other corporate entities with much riskier enterprises. He's speculating as to what happened because if he says concretely what happened, then he would have been aware of his FTX's misconduct and therefore his own. He's trying to avoid criminal charges and keep his liability only to the civil level (fines, not jail).

[coolcoinz]

That was one of those moments when the bad kid regrets not listening to his parents, especially since in this case both were teaching law at Stanford.
I said were because it seems they were fired, I don't buy the retirement story:
https://decrypt.co/116770/sam-bankman-fried-barbara-parents-stanford-law-teaching-break

They both had scheduled courses with Father cancelling the course that was supposed to start in a few weeks, so the mother said it well, the retirement has nothing to do with it
Also, she's 2 years younger than her husband and suddenly they both decided to retire in the same month.
Maybe they got so much money and properties that they don't have to work anymore?
I think that the real reason for this is they're too busy making a line of defense for their son and possibly for themselves.

I'd really like to see that sociopath in jail.
 

[franky1]

so the mother said it well, the retirement has nothing to do with it
Also, she's 2 years younger than her husband and suddenly they both decided to retire in the same month.  

she said in interviews it was a long planned decision...
.. if they were planning.

a. they would not be setting schedules for winter 2022-anytime of 2023
b. they would not just stop mid semester
c. it would not be a sudden stop both in one month

im guessing they are leaving the US and travelling to a non-extradition country.
.. maybe even bahama's where SBF has one of them $16.4m vacation homes(mansions) they got with users funds earlier on

[Fortify]

As the title stated the third interview[1] of Coffeezilla to SBF has come to fruition when he made SBF to accidentally  admit fraud by saying that all funds are stored in a single "bucket". The client who do not agree with any marginal trading or hedge funds and that was promised to have 1:1 reserve cannot withdraw and the fund is nowhere to be found.

Altcoin Daily had made video[2] compilation  and explanation how SBF admit fraud during the third interview of Coffeezilla to SBF.

Here is the Altcoin Daily's video timestamp[2]

It is really a great job done by Coffeezilla in strategically making SBF indirectly admit that FTX is committing fraud to its client when he made SBF stated the fungibility of Funds during the bankruptcy and that funds of different risk level are stored in the same wallet, that action does not comply with the Terms and agreement of FTX to their client thus showing FTX has been committing fraud since the beginning.

The two video is a good watch and it is great to see how Coffeezilla exposed SBF of the fraud he is denying for weeks.

In reality he knows he is in big trouble right now and is trying to piece together a cover story, even if that is just ignorance. He is clearly an intelligent person to be able to construct such a big company that has since failed, but his downfall might actually be the fact that he is on this media campaign and falling into many unwitting traps that interviewers are asking him. It's clear he is going against the advice of the best lawyers he can afford, but this might be a level of arrogance he still retains. Ultimately it is the regulators who will pursue charges against him once the company has been properly audited and the auditors have been giving very bad signals about the organization of the company so far, he seems to be in for at least a few years jail time.

[franky1]

side note:

kevin o'leary (sharktank) as spokesman of FTX, is stilll defending SBF
but here is the thing.
legally kO'l has to legally say what he says, because if KO'l just says SBF is a scammer, then that makes KO'l liable as a spokesman for promoting a scam.

meaning kO'l shouting SBF scammer=kO'l pleading guilty to promoting a scam. so yea he wont do that

so he has to also plead ignorance and say "innocent till proven guilty" otherwise he can get fined/handcuffed too.
..
anyway
i think SBF next game, is that he will play on the "im not a coder" and will blame whomever he paid to make his platform, for not having the 'bucket' separator of user types, having different wallets.
where SBF couldnt code anything when it all "went wrong", thus trying to blame customers for doing a bank-run on a platform designed badly by some other dude as the reason for liquidity to dry up.
 
EG excuses like 'i did not choose to co-mingle funds i just believed they were separate based on a fake GUI coded by dude X'

its getting too predictable the lame excuses you can start seeing SBF subtly eluding to in some of his words in these interviews

[Smartprofit]

I love watching The Wolf of Wall Street on long winter evenings. 

The protagonist of this film reminds me a lot of the head of the FTX cryptocurrency exchange.  So this whole situation does not surprise me.  It is very difficult to create such a large cryptocurrency exchange in such a short time without breaking the law.  In addition, such a rapid expansion of business is inevitably accompanied by chaos.

It reminds me of one of the characters in Alexandre Dumas' novel "Ten Years Later". I mean Superintendent Fouquet.

He also constantly confused his personal funds with public funds (the funds of his clients).

[franky1]

he was not actually a big exchange

coinbase has 60mill exchange customers
binance has 25mill customers

ftx only had 1.2m customers

ftx got to 1.2m customer by acquiring most of them from buying out failed other exchanges earlier in 2020-2022

he didnt genuinely grow a customer base the normal way
https://decrypt.co/85744/ftx-is-spending-big-on-marketing-because-were-behind-on-name-recognition-ceo
..
i seen some of his games early on when he was acting as the liquidator/administrator for bankrupt businesses. he was allocating/swapping assets out of dying businesses and leaving them to rot

and leaving them with more debt while acquiring their assets so that when they close on bankruptcy he can leave them with all the higher debts

he was not making any billions of profit from just trade fee's

he never had $32billion of real assets/fiat on hand to back a real valuation

it was just that out of say 100,000 alot of them were other exchanges and businesses and people of notability..

[gunhell16]

This is the FTX and User agreement clause where SBF got f**k*d up



It is a clear fraud when the company did not comply with the agreement and moved the funds of people who did not avail of the options of lending, hedge funding, and marginal trading. But it was clear the clause was not followed.  This is how FTX defrauds its clients and SBF is well aware of it even though he denied the allegation for weeks but then just like a fish, SBF was caught admitting through the words his mouth has uttered.

The fish was caught in its mouth that it thought was food, I hope that the person in charge assigned to this investigation at FTX is serious and that this person will be imprisoned, it is obvious that he committed fraud and took funds in the transfer of illegally.

I also watched that video and I'm still very confused by SBF's answers, but even so, I still believe somehow justice is real. Maybe because SBF thinks that the more he does interviews and is seen being talked about in the mainstream media or social media platforms, his image will still be fragrant and fine, he forgot that his image will be tarnished even more because his reputation is already ruined.

[darkangel11]

Good job by Coffeezilla.

He's going to get much more popular thanks to this. He got into Lex Fridman and many other podcasts. It's funny how these fraudsters fall and other people grow on top of them.
I just hope it's not all in vain and SBF gets what's coming because otherwise it's just one guy gaining popularity by bringing down the other.

I'd love to see Sam and his girlfriend sentenced but it's easier said than done. When you have a few million USD to spend on lawyers you usually are untouchable.

[Casdinyard]

Not sure on the viability of this being used in court, but if possible this could be a surefire damning evidence to persecute SBF and his cohorts for scamming clients and customers out of their hard-earned money. Props to coffeezilla for doing the impossible and catching the trout right from its mouth. My heart goes towards those victimized by this freak of nature and his affiliates.

Good job by Coffeezilla.

He's going to get much more popular thanks to this. He got into Lex Fridman and many other podcasts. It's funny how these fraudsters fall and other people grow on top of them.
I just hope it's not all in vain and SBF gets what's coming because otherwise it's just one guy gaining popularity by bringing down the other.

I'd love to see Sam and his girlfriend sentenced but it's easier said than done. When you have a few million USD to spend on lawyers you usually are untouchable.

True, but to watch their lives fall apart while the prying eyes of their victims pierce through their souls in every second of their waking lives isn't so bad either. I only wish these two along with people responsible for this mess be put to justice considering how many lives they ruined with a plan as sinister as this.

[The Sceptical Chymist]

Oh god, I saw all of this and I've been trying to follow the whole FTX/SBF drama closely--and I have no fucking clue what he thinks he's doing by giving all of these interviews.  It's unlike any other major scam I've ever seen, and I remember the collapse of Enron, Worldcom, and others.  No CEO ever puts himself out to the media like SBF is doing.

But hey, it seems like he's just endlessly spooling out the rope that's going to be used to hang himself, so in the end the interviews with coffeezilla and everyone else will be a good thing for prosecutors.  There are going to be prosecutors, right?  I mean, those donations to both US political parties won't influence law enforcement, right?

This debacle is just awful for crypto's public image, even if it isn't justified.  SBF wasn't the first scammer in the space, though he might be biggest so far.  And those superbowl commercials....ugh.

[eaLiTy]

~
kevin o'leary (sharktank) as spokesman of FTX, is stilll defending SBF
but here is the thing.
legally kO'l has to legally say what he says, because if KO'l just says SBF is a scammer, then that makes KO'l liable as a spokesman for promoting a scam.

Kevin O'Leary got $15 million from FTX to promote the scam and now he is defending SBF who is playing bluff during interviews and he was running around circles when Coffeezilla was asking critical questions and shut him down without responding much and the word is that Kevin O'Leary will testify before congress in support of the scamster SBF. The more SBF talks he will spill out something that will incriminate him.

[franky1]

~
kevin o'leary (sharktank) as spokesman of FTX, is stilll defending SBF
but here is the thing.
legally kO'l has to legally say what he says, because if KO'l just says SBF is a scammer, then that makes KO'l liable as a spokesman for promoting a scam.

Kevin O'Leary got $15 million from FTX to promote the scam and now he is defending SBF

 the word is that Kevin O'Leary will testify before congress in support of the scamster SBF. The more SBF talks he will spill out something that will incriminate him.

i dont like o'leary. but from a legal stance i can understand that he cannot really drop the ball and say SBF scammed him and say SBF is a scammer voluntarily in public. because saying SBF is a scammer. is o'leary pleading guilty to advertising a scam. meaning jailtime or high price fine for o'leary

unbiased, i can understand o'leary wanting to avoid jailtime by not wanting to just out himself as a advertiser of a scammer
take all the other celebrities that would rather 'settle' out of court than plead guilty to advertising scam coins and ICO's

im sure o'leary testifying in congress is not simply a character reference of ass kissing SBF.
o'leary already admitted that his own "due diligence" of SBF was just hearsay of others vouching for him and no internal audit or skills testing of SBF to see if he really is any good at securing funds

im sure authorities would have done a deal to exonerate/absolve o'leary of any advertising a scammer charges if he testifies against o'leary. but lets see whats said when he testifies

Oh god, I saw all of this and I've been trying to follow the whole FTX/SBF drama closely--and I have no fucking clue what he thinks he's doing by giving all of these interviews.  

when bahamas authorities freeze your domestic personal bank accounts and he stupidly had some assets in his company which are now locked into bankruptcy administration..
when he cant 'spend his retirement secret stash as thats criminal.. so has to plead poverty of access to less than $100k to survive on.. whats left..
.. oh yea a media tour cash speaking jobs, after all lawyers are not cheap

[pixie85]

i dont like o'leary. but from a legal stance i can understand that he cannot really drop the ball and say SBF scammed him and say SBF is a scammer voluntarily in public. because saying SBF is a scammer. is o'leary pleading guilty to advertising a scam. meaning jailtime or high price fine for o'leary

Advertising something that turned to be a scam and knowingly advertising something that was a scam from the beginning are two different things.

I'm not sure if O'leary saying that SBF scammed people would mean that he was paid to help scam.

The most important for the court is to proof that it was not negligence but intention to scam people and that O'leary knew. To do that they have to first prove that SBF knew he was scamming and that O'leary found out while he was advertising and did not quit because the money was too good. The last part is going to be very difficult even if they both admit it was a scam.

[franky1]

unlike kardashians.. o'leary is seen more as a fiduciary. meaning he has a legal responsibility to do PROPER accountable due diligence before giving advice..

yep he is on a higher level. meaning he is more liable

him saying his due diligence is just the hearsay of others that trusted SBF doesnt cut it.

kardashians dont have access to accountants and auditors. but o'leary does.

so if kardashians got caught for advertising a scam. o'leary wont be/shouldnt be found innocent.
that said. even a guilty person wont openly want to plead guilty unless it presents them with an advantage, such as easing other peoples pain or reducing his own suffering/consequences of his actions

im sure he with trade his possible future legal penalty limits by disclosing information behind court room doors. but he wont give it away for free, where it does not aid his own personal effects of possible penalty later