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Hello this is Matt on the moon Lambo Channel the idiots at the SEC have Harmed themselves yet again these people Are just imbeciles and you know it's It's not just that they're also so Arrogant they are so tremendously Arrogant that they think that they can Trick judges into believing the nonsense Bunk that they're putting out but it's Not going so well for them and so the SEC most recently made a gigantic Mistake in even reques requesting an Interlocutory appeal in the secv Ripple Case and I'll assume that pretty much All of you right now are well aware Since this is news from like a week ago Uh that that didn't go so well for them But there are going to be broader Implications as a result of this uh Don't forget that there's a a a another Crypto lawsuit of tremendous cons Consequence and arguably more important Than what happened in the secv Ripple Case um attorney Deon has has Articulated reasons as to why and it Seems like a pretty reasonable argument Even though I care about xrp more than Any other individual cryptocurrency I'll Certainly see the point that if you can Destroy the on-ramps and off-ramps of a Crypto in the United States you don't Even need necessarily to go after Individual cryptocurrencies so I Understand the argument there but that's
Still going down and as it turns out Perhaps what's most probable seems like A virtual certainty to me personally Anyway is that because of what the SEC Has done they have made it less likely That they are going to be Victor In their lawsuit against coinbase Because specifically what they did in The Ripple case and so I want to talk a Little bit about that I've also got an Update for you on uh the uh scam bankman Fraud Saga my God that Guy that guy's going to get 30 years of Life I mean I wouldn't be surprised Anyway I mean hopefully he's going to be In jail the rest of his life but I would Be surprised if once this is all said And done he doesn't at least get a Number of decades here but um you know The court proceedings ongoing this whole Thing supposed to last it's estimated 4 To 6 Weeks and uh I do not believe for a Second it's going to go well for him but Uh there have been some very interesting News breaking on this topic and one of The things that just made me chuckle a Bit is a finding out that scam bankman Fraud uh wanted to be president of the United States and thought that he Actually might be at some point in the Future kid you not but anyway before Going further I do want to be clear I do Not have a financial background of any
Kind I am not offering Financial advice And you definitely should not buy or Sell anything because of anything I say Or right I'm just an Enthusiast who Enjoys making YouTube videos about Crypto related topics but just as a Hobby and just for fun all right so Here's a post from yesterday from xrp Community member Ashley Prosper who I Think absolutely hit the nail on the Head with this and wrote The Following Because this is all intertwined and it's All of extreme consequence to all of us And yes we here in the xrp community uh We're sitting pretty we are light years Ahead of uh you know you know many Others within the broader world of Crypto uh just in the sense that since We're xrp Holders you know there there is no Question as to the legal status of our Our our Cryptocurrency but for others a lot of Question marks which I'm not thrilled About either to be honest with you Because I hold close to 30 different Cryptocurrencies and the SEC is Attacking a number of other coins that I Hold now I don't think it's going to go Well for them I'm very optimistic for The future but still um given that's the Case I love seeing the SEC make unforced Errors so here's what Ashley Prosper Wrote the SEC made a huge mistake in
Asking for an interlocutory appeal in The Ripple case not only did it torpedo Itself in that case but I suspect Coinbase Paul Greywell and Brian Armstrong will be using the ruling to Combat many of the sec's objections to a Judgment on the pleadings including the One below I have a feeling the Tores Ruling is going to be used for many Years to come here the SEC fails to Prove that purchasers were aware of a Token issuer's existence and instead Basically asked the court to assume it's True and so folks right there what he's Ref what's being referenced is obviously Ripple the SEC did not prove that that's What purchasers were aware of they now They asserted that they had an you may Recall they had an expert witness which Judge Tores end up thr not there there's This assertion that uh Ripple is the Reason that everybody was buying xrp but There was literally no proof and the Expert in question never asked a single Xrp holder this is admitted as as being The case never asked a single xrp holder Why they purchased xrp just had these Just wild assertions as to why that was The case so the SEC failed to prove that And that's what's being cited right There and then Ashley Prosper says this Didn't fly for judge Torres who made it Clear the SEC had failed to meet its Burden on several
Fronts if judge fa I'm not sure was it Faila I can't remember how to pronounce That one but anyway the judge uh takes The same position as judge Torres the Coinbase case should be over within six Months and folks if you've been watching The tone and I've been reporting on this As time has passed if you've been Watching the tone and the questions of The judge it's the same scorn that we Saw at times from uh from both judges in The secv Ripple case you can tell that The judges just aren't falling for it And that's why I saying at the outside Of the video it's the ego and it's just The audacity that's set forth because of The tremendous ego of these absolute Pricks these little H hell Spawns and so as it turns out as Disgusting as these creatures are They're damaging their own case if they Weren't so outrageous they'd actually Have a better chance now not that they Were they're on the wrong side of History no matter what I'm just saying They're making unforced errors here that They didn't need to make and so with This interlocutory appeal being denied Which was it's like duh do you think Judge Torres is actually she just took That as an opportunity uh to double and Triple down on previous points that she Made just strengthening the case and all Of this can be used and cited in the
Coinbase case absolutely and so take a Look at this headline from the daily Huddle SEC says crypto assets have no Inherent value in new court motion Against coinbase and I'm G to try and be Brief with this portion of the video but I just want to make a broad point on This this is it's one of the same bogus Nonsense BS Arguments that the SEC was making in the Ripple case they're they're arguing Something that has no implication in Terms of whether whether or not a Transaction is part of an illegal SEC Investment contract whether or not Something is a secuity transaction and What they're talking about here is Whether or not something has inherent Value that is not part of the Howie test You imiles how stupid could you possibly Be but they think that they can trick The judge they have to know it's not a Good argument but they can't help Themselves and it already failed in the Ripple case and they're still arguing it Here Too my God what is wrong with these People piece reads as follows the US Securities and Exchange Commission has Stated that digital assets have no Inherent value in a court motion filed Last week against coinbase the top us Crypto exchange by volume the regulatory Agency says that digital assets have no
Real value as they cannot generate Profits on their own so I'll just pause Note this and this should be I'm not Going to go into great detail on this Because it' be too far outside the scope Of this video I I don't believe that There's any sort of inherent or Intrinsic value in crypto either I think Something if something is valuable People use it but it's rather subjective It's just it's not by the nature of Existing it suddenly is valuable so There's nothing intrinsic there but the Same is true for the other things that They site whether you're talking about Um a chinchillas or whiskey these have All been you know parts of security Illegal Securities transactions in the Past yes chinchillas and whiskey and and Oranges right but as far as whether or Not those are useful it's subjective not Objective and it's subjective because It's opinion based not everybody is Going to find a freaking chinchilla Useful I don't find a chinchilla useful Do you does it have inherent value to You what if there were no humans on the Planet would it still have inherent Value like what does that even mean and So obviously it wouldn't which means That it's subjective it's the same for Crypto so not only is it a bad Intellectual argument it also has Nothing to do with the Howie test but
Here they are making the same nonsense Claim here they wrote The Following real Estate has inherent value whereas a Crypto token will generate no profit Absent an ecosystem that drives demand End quote the SEC references the howi Test a legal criteria often cited to Determine whether a transaction counts As an investment contract or not to help Prove its Point according to the Howie Test an investment contract is a Contract transaction or scheme whereby a Person invests his money in a common Enterprise and is led to expect profits Solely from the efforts of the promoter Or a third party and so that that that's Correct where in that does it say that There must be or must not be inherent Value it doesn't but here they're Arguing this here's a quote from the SEC Any suggestion that the potential Utility of some of the assets somehow Changes the analysis is is wrong the Investment contracts and Howe involved The sale of an asset orange grow other Tangible assets sold as part of Investment contracts include beavers Whiskey caskets and chinchillas assets With inherent value crypto assets are Unlike the tangible assets sold in those Cases end Quote and again I already I don't want To go too far off the off the rails here And that it's it's I documented on the
Channel in more than one video my stance On like the idea of there being or not Being inherent value when it comes comes To crypto assets here but it goes much Deeper than that it's subjective so it Can't be it can't be an attribute that's Applied to those things if humans can Have opinions and disagree on whether or Not that is there is value or isn't Value it doesn't make it's it's an Incoherent argument but that's what the Sec's argue so on intellectual level They're way off the rails there too and Then on the embodiment Theory and this Was rather delightful there's an Attorney named Mike Cigue and he wrote the following a Couple days ago he said C C's response To coinbase's motion for judgment on the Pleadings argues that crypto assets have No innate or inherent value but embody Some underlying value of an investment Contract it follows that an asset May at Some point no longer embody this value And we're back to 2018 so folks that's Interesting think about that and I Hadn't heard it quite articulated this Way which is why I just thought wow That's an excellent illustration because Again what do they argue that there's no Inherent value so which the same thing Is saying there's no intrinsic Value in cryptocurrencies here but then What do they also say out the other side
Of their stupid little Mouth that that it does quote embody Some underlying value the asset itself Remember the embodiment theory in in the Secv Ripple case xrp embodies that whoa How does it embody it I thought there Was nothing inherent here what are you Talking about and then i' never seen Anybody quite word it like that and I Was just like yes exactly that's Brilliant way to word it and then he Said SEC the that all transactions and a Token are securities because the token Embodies the value of a security is Unusual Commodities sold in a Securities Transaction aren't carriers that Transmit the security status of the Transaction onto future transactions Under different facts yeah obviously and That's Spoton um so yeah the SEC kind of They've just been screwing themselves It's fantastic you'll love to see it You'll love to see it because these are Awful Humans I hat Pricks here's a headline From the daily hodle ftxs Insurance Fund Was an arbitrary madeup number according To co-founder Gary wayang I'll get to That um there's also what else did I Pull up here um here's a headline from Coindesk Gary Wang Caroline Ellison Looking at day five of Sam bankman Freed's
Trial um and then I got some stuff spe And actually what I found to be most Interesting is is some of the stuff from Caroline Ellison now and also worth Mentioning this is just as a friendly Reminder here Gary Wang and uh and and Caroline Ellison they both uh accepted Plea deals from the government and I Know that Caroline Ellison she was Actually facing if convicted on Everything she was facing up to 110 Years behind bars and now we don't know What's going to happen not at this Particular point in time and in theory She could see no time although I don't Think that's probable but uh she got This deal she's just speaking out Against scam bankman fraud Gary is is Doing the same thing here and the stuff That they're saying it just it's Outrageous it's just as bad as you might Imagine it would be knowing that they Were literally using customer funds for Everything under the sun for you know Political contributions real estate just Their lavish Lifestyles all that Crap so um let me jump Into uh yeah let me jump into this yeah I think this is where I want to start From coin desk uh Gary Wang Caroline Allison look at day five of Sam bankman Freed's trial this is some crazy stuff Check this Out FTX co-founder and former Chief
Technology Officer Gary Wang began Testifying in Earnest last Friday in Sam Bankman Freed's trial uh FTX is Insurance Fund this is out you just got To listen to this ftxs Insurance Fund Was calculated by taking the total Volume of Trades over the past 24 hours Multiplying that by a random number That's around 7,500 and dividing that figure by 1 Billion the prosecutor asked if the Number had anything to do with the Actual number in the Insurance Fund to Which the answer obviously was no so They just completely fabricated this Thing that's how sloppy and ridiculous They were they're just like Well these are not brilliant people These are not masterminds these are Incompetent idiots and they're obviously Also terrible people because what they Were literally doing is taking the the Funds of their customers FTX and then Doing all sorts of like I just said a Minute ago buying outrageously expensive Real estate they Were you know literally taking millions And millions and millions of dollars in Fact there's I'm not going to read this Article it's an old article from uh December of last year I was just reading Through some of the older stuff before I Recorded the video here was December 15 2022 here you go Sam bankman freed
Donated over $40 million in the 2022 Election cycle where did it go and so so If you had your funds your hard-earned Money in FTX it went to political contributions Which you might not necessarily agree With but that's what happened these are Terrible people they deserve to be Frankly all of them should be behind Bars for the rest of their lives as far As I'm concern but plead deals are plead Deals and they're trying to take down The kingping which is scam bankman fraud So I I get it that's just how stuff goes But anyway pieace continues FTX customer Balances were approximately equal to What was in the company's hot wallets Except there was an Alam sub account With a balance around minus8 billion That was excluded from the list of Customer balances and of course I'll Just remind you Alam is basically Investment arm of the same firm like a Sister company if you will then they Wrote in hindsight we knew this but FTX And bankman freed were tweeting that FTX Was fully liquid and funded after Coindesk reported on the balance sheet Even while FTX ran out of funds to honor Withdrawal requests FTX was not fine and Assets were not fine because FTX did not Have enough assets for customer Withdrawals Wang said the defense began Cross-examining Wang on Friday but judge
Lewis Kaplan cut attorney Christian Everdell off a few minutes prior to the Scheduled in time after yet again Warning the lawyer about repeating Questions that have already been Answered Tuesday should see everell and His team complete the cross Examination um defense attorneys may try To poke holes in Wang's assertions that Bankman free directed or controlled a Lot of what happened with Al Med's use Of FTX customer funds okay but let's get Into some stuff from Caroline Ellison so Here's a piece also from Coindesk Caroline Ellison former CEO of Alamer research testified that she Committed fraud at the direction of her Ex-boyfriend and former colleague FTX Exchange founder Sam bankman Freed Ellison 28 is the government's Highly anticipated star witness in the Six week trial of bankman freed she was The CEO of alam research the hedge fund Prosecutor say stole billions of dollars From customers of its sister company The Cryptocurrency Exchange FTX prosecutors Began their questioning of Ellison by Asking her if she committed crimes and If so who she committed them with Ellison who pleaded guilty to fraud and Conspiracy charges last year said she Had and that the and that she had Committed them at the direction of Bankman freed I sent balance sheets at
The direction of Sam that made alam's Balances look less risky to investors She said also testifying Alam had taken Funds from FTX to make its own Investments yeah so I'll just pause a Note here This I mean I I this is crippling to to Scam bankman fraud so we'll see how this All shakes out here but there's you Understand like you can see Transactionally when money did what so That in conjunction with this this you Know these obviously correct true and Correct claims you you put it together I Mean you have a full and complete Picture of exactly how this stuff went Down and again so I think she's awful as Well but SPF is in a lot of trouble Here peace Continues I sent balance sheets at the Direction of Sam that made Al's balances Look less risky to investors um Her proximity to bankman Freed's Business and personal live lives is Almost certain to give the jury its Closest look yet at the decision making That led to ftxs Epic collapse last November she has been cooperating with The government since at least December When she pleaded guilty to an array of Financial crimes stemming from her time At Alam Allison also spoke about alam's Borrowing FTX customers funds bankman
Freed said to use FTX funds but to keep Money on FTX to meet customer withdrawal Requests she said and so folks that's That's that's the Crux of the matter Right there as we we've known this for Almost a whole year now that's literally What happened have enough so that Withdrawals can be covered but of course Once it was discovered that uh FTX Wasn't good for it a bankr kicked in and They didn't have enough funds to give Out to everybody because they took Customers money anyway piece continues a Lot of this money went to loans made to Members of bankman Freed's Inner Circle With funds going toward investment and Political donations Ellison said According to Ellison bankman freed Thought the political donation strategy Was highly effective and that's a quote Offering very high returns in terms of Political influence at a modest Cost but I didn't feel good about it she Said of the loans made to insiders it Might look like Alam sort of funling Money to FTX Executives as for her on and off Romantic relationship with bankman freed Allison said it created some awkward Situations yeah I'll bet it did Alison Testified that she reported to bankman Freed even after being appointed CEO of Alme research despite the appearance That bankman freed was stepping back
From the hedge fund he started to focus On running the FTX exchange I would Always ultimately defer to Sam She Testified she said she had no equity in Alam despite asking for it bankman freed Decided it would be too complicated and Didn't make sense for her to get a stake In the hedge fund though she did have a Sliver of equity in FTX he thought it was important to Separate Alam and FTX more optically Allison said of bankman freed Allison Also spoke about the essentially Unlimited line of credit Alam had at FTX Bman freed was the one who set up these Systems she said a big part of Allison's Testimony focused on bankman Freed's Desire to secure loans for Alam Sam was directing us to borrow as much Money as possible she said this is Something he talked about a lot her Testimony shed new light on why ftxs Exchange token ftt made up such a large Portion of the Alam balance sheet to Coindesk a coin desk obtained last November an award-winning scoop that set Off the unraveling and bankman Freed's Empire and so folks ftt token as Collateral uh which you know what's it Really worth what was it really worth Even at the time here and it's their Token that they control and then what What types of loans were the getting Answer a result not good not
Good Sam uh Sam had said that he wanted To buy more ftt because he didn't want To put any of our loans in danger Allison said Tuesday it was a little Potentially misleading to put the ftt Tokens on the balance Sheet um and by the way for those of you That care to look at your screen look at This beautiful sketch beautiful sketch It's so lifel likee this this is a Sketch of Caroline Ellison testifying in Court a spitting image of just it looks Just like Her you know what they might as well Have hired me I could have drawn a damn Stick figure that looks as convincing so I don't know I just I got a kick out of It I'm just Saying um and then I'm not sure I think It was set in this article maybe it was Let me scroll if I can find it I don't Need to cover those are the the biggest Parts of it um if it's not covered Here well that's okay I already Mentioned it earlier in the video but uh I was I was going to see if I could find The exact quote but uh yes according to Caroline Ellison Sam bankman freed um Actually thought that he could be President of the United States of America he thought and he attributed From what I'd read a 5% odds of that Actually happening oh my God So uh I don't see him being president of
The United States ever I can't even Imagine that But I can see him behind bars for the Rest of his life that sounds pretty good That sounds a lot better than him being President of anything frankly but isn't That outrageous it just goes to shows Like some of the mindset here like the Ego of this and he just thought he could Do whatever he's just a disgusting awful Person hiding behind this uh you know The say what uh Altruism oh yes well he even he even Admitted um after the collapse of FTX That it was basically a facade it just It sounded nice you could pitch it to People look at what we're doing Effective altruism blah blah blah blah Blah but meanwhile he's just a thieving Cucumber eatting son of a them's the Breaks I'm not a financial adviser you Should not buy your sell anything Because of anything I say or right that Would be a very very very bad idea until Next time to the Moon Lambo
