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

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