SHOCKING $662m Theft *TODAY* & Crypto FRAUD FTX Exposed

you cannot make this stuff up look at

this tweet that I sent yesterday I wrote

you have got to be effing kidding me

this by the way is like 14 000 likes

like thank you for liking and retweeting

this uh I'm at realme Kevin on Twitter

but look at this you've got to be effing

kidding me audits for FTX were performed

by the quote first ever CPA firm in the

metaverse it wasn't even that hard to

figure out look at this who audited FTX

Prager metis CPA was one of those who

performed audits on FTX and ftx.com in

the United States for fiscal 2021 you

just Google Prada Prager mattress Prager

mattress first ever CPA firm in the

metaverse you literally can't make this

stuff up and then I write the CPA firm

probably also had no incentive to

actually care because there's no

regulator supervising these audits fat

paycheck from FTX and clout and no

regulator easy to look away oh my gosh

so what's happening now let's let's talk

well folks it's happening not only is

FTX going bankrupt but now the leftover

money is being hacked and stolen away in

this video I want to talk about how that

could be happening okay so let's first

do a very quick recap we know that

binance suggests that they were going to

dump the finance token last weekend ftt

because of some abnormalities they were

seeing then FTX and their FTX token

plummeted in value and because FTX was

letting individuals borrow using the ftt

token as collateral you had this death

spiral of margin calls of customers who

were getting margin called because the

ftt token was plummeting and the more

people were getting margin calls the

lower the crypto Market was going and

the more the ftt token was dropped even

lower and so the more you had a death

spiral of one dropping lower leading to

margin calls here but then the

collateral dropping in value leading to

more marginal calls over here everything

just a complete disaster and that led to

a bank run on FTX where individuals were

possibly in the normal course of

business trying to withdraw their money

we're getting delayed on their

withdrawals and then all of a sudden

ftx.com

seized up with withdrawals now when this

occurred I made videos and I posted

tweets like crazy saying get out of FTX

us I used to be sponsored by FTX us

which is different from ftx.com but

those companies have common ownership so

we can't kid ourselves you are going to

see the same freeze-ups as at ftx.com at

ftxus and folks after five days of me

warning get out

FTX us filed for bankruptcy late on

Friday with the Bahamas seizing whatever

assets they can because this company is

based out of the Bahamas rumors

circulating that Sam bankman freed

either has an arrest warrant out for him

or that he's been arrested at an airport

these are unconfirmed rumors at this

point but there are rumors that are

circulating the SEC is investigating for

fraud Janet Yellen Janet Yellen is

talking about how this is why we need

regulation for cryptocurrencies uh

people are trending on Twitter fire Gary

Gensler for failing to regulate sooner

for taking too long to actually make

sure people were safe at these companies

and I feel terrible about it too and I

am completely sorry for not realizing

the failure that these companies would

go under I've always thought the stable

coin yields were pretty wild and I've

warned against those but I thought boy

don't invest then in the stable coin

invest in the seller of the pickaxes

right and rather than selling trying to

go find gold just invest in the pickaxe

seller yeah well the pickaxella went

bankrupt real bad and it sucks I lost a

lot of money I had invested in companies

like this that I sponsored was sponsored

by as well and I lost way more money

with my investment in those companies

and I ever got paid in sponsorships I

specifically for example in Block if I

invested four hundred twenty thousand

dollars

that's all gone

yeah anyway so what's happening now with

these hacks and how are they getting

away with this and for those of

individuals who are wondering does me

saying I lost money and being sorry

about having lost money somehow make up

for having pitched these companies no

and I'm sorry for that that doesn't

cover that failure I just want to make

that very clear I don't think anybody

saw this coming but I'm sure some people

did because well there were some people

who are just really anti-other crypto

exchanges so there's some competitive

Advantage but boy oh boy this is turned

into a disaster so how is this hack now

breaking down well let's take a look at

how this could happen because right now

we've got about

662 million dollars that potentially has

been hacked out of FTX there are some

estimates that that's uh 475 million a

different firm that's tracking uh

analytics on chain analytics is seeing

this but how can companies get away with

stealing this sort of money and then

Vanishing I mean isn't the bad benefit

of blockchain technology that you have

transparency well yes and no see

blockchain technology enables

transparent transacting but what it

doesn't enable is knowing exactly whom

is conducting those transactions and

that's the problem see you could for

example if you were an employee at FTX

or maybe you're Sam bankman freed who's

you know in the past allegedly uh based

on other rumors co-mingled funds between

FTX and Alameda his his investing

company just so you know quickly how

that would work and then I'll show you

how these potential hacks could work FTX

could potentially lend Alameda which is

Sam beckman's freed investment fund

money and so you you give a loan so

basically Alameda says okay I owe you

money back and we're taking the loan

over here this is very commonly done

between business says all the time but

when it becomes questionable is when you

have common ownership and what are the

terms of that loan what if Alameda

doesn't pay it back what if Alameda

takes a billion dollar loan from FTX

reserves then Alameda goes bankrupt now

all of a sudden there aren't enough

reserves so that IOU is worthless and

then when there's a bank run on FTX FTX

goes bankrupt after alameda's already

gone bankrupt well that could be exactly

what's happened and this is actually

just like really really poor management

and borderline unethical actually I

would just straight up call uh you know

call a duck a duck right uh it's

unethical and fraud so it's it's really

really bad especially since you're using

customer funds potentially to do this

sort of stuff now we're still waiting to

get more information on exactly all the

things and how they're breaking down but

this is what it looks like so how do you

in the transparent ecosystem of

blockchain Technology still real money

if if all transactions are so

transparent well let's say you're an

employee at FTX so you're over here at

FTX and you're like wow we're going

bankrupt okay we have the FTX wallet

nobody knows who actually has control

the private keys for those wallets

because for crypto for cryptography you

need a private key to to essentially

unlock a wallet to be able to transact

with that wallet so you can decode the

hash

the cryptography could be a topic for a

totally different video but anyway with

the private key which this is why we

have public transactions we could see

all this without anybody actually having

your private key with the private key

you can do whatever you want with the

wallet so let's say FTX over here has

662 million dollars in in cash left now

they technically owe people potentially

six to eight billion dollars and the

employees who are left at FTX and I'm

not trying to slander or shade them they

could be somebody else okay maybe maybe

somebody broke into FTX maybe this is

somebody you know in the Bahamas or

somebody who flew to the Bahamas and was

like I'm gonna go steal that stuff and

so they find the private key taped to

the bottom of a desk whoever it is

doesn't really matter we probably will

never know how can they get this money

out of here so they might say okay well

FTX is bankrupt because we're not going

to pay six to eight billion dollars and

nobody wants to bail us out sure there

are companies like Tron that are like oh

yeah we're talking about maybe a

multi-billion dollar bailout but it's

all subject to to to due diligence and

really I think some sometimes when you

get these talks about oh yeah tron's

going to come in and bail out FTX I

really think what sometimes these CEOs

like even the binance CEO whom I think

is kind of a shady character you can

watch my video on why I think that uh

just type in meet Kevin binance and it's

one of my videos from last week but yeah

there's like a whole 15-minute

explanation about why I think he's Shady

so if you're like new cheesy is the good

one he's one of the ogs if if you think

that then at least at least get my

perspective in that video but anyway

so so uh you know why would companies

temporarily maybe want to prop these

things up by saying oh yeah we'll we'll

just uh we'll buy them subject to due

diligence well you provide temporary

stability in the market and maybe as you

provide that temporary stability in the

market you're secretly like dumping

certain crypto you're secretly trying to

elevate your reserves and then you're

like yeah just kidding I don't actually

want you it's giving you it spot you a

little bit more time so I when I hear

companies like Tron saying they're going

to buy FTX I think FTX is so far

underwater they would be moronic to do

so just like I think it would be moronic

of binance to do so and then they did

end up indeed pulling out uh so I just

want you to be aware of that like you

can you can join joink there's a new

word uh this market and really screw

with people but anyway so let's say

you've got the 662 million dollars

sitting in in you know the crypto wallet

for FTX and you're like well crap the

bank company's going bankrupt anyway

you're a bad person you're like you know

I'm just gonna steal this and live a

great life and I'll share it with like

one other employee or something like

that right well we're gonna go live in

in the Cayman Islands let's go from

Bahamas that okay mng tough life anyway

so you take the 62 million dollars and

what you do is you put it into the

Vortex of usually an erc20 or the

ethereum network and uh there used to be

this thing called a tornado cache but uh

which but tornado cash got shut down but

there are so many alternatives to

tornado cash I'll give you a brief

explanation but just an example there's

uni join uh there's coinomize Min BTC ZK

money zero X Monero Cyclone protocol

mr87 spinner they're all basically

tornado cash Alternatives now tornado

cash got like globally shut down because

it was just totally money laundering and

everything and all of these other

features are probably doing that as well

and you shouldn't use these because

these are probably going to get you in a

lot of trouble but if you're a criminal

what could you do so what you do is you

take your 662 million dollars and you

dump it into tornado cash or these other

platforms when you dump it into this

what you have is a giant Vortex of

thousands to potentially millions of

transactions going in so you'll see okay

a 662 million dollar transaction is

going into this tornado but then on the

other side what you'll find is you'll

find maybe if one million transactions

came in maybe you'll find 20 million

transactions coming out and the 20

million transactions coming out here

we'll use we'll use a small blue pen to

signify coming out the 20 million

transactions coming out are all 1 000 or

let's just call it because ethereum is

almost a thousand dollars let's call it

one eth transactions and some of these

are legitimate some of them are bad but

what you do is you basically take money

out of the tornado in little one

ethereum increments so what you do is

you just repeat this withdrawal process

662

000 times and all of a sudden one

ethereum is coming out 662 000 times but

it's not just that it's combined with

all the other single ethereum

withdrawals people are taking out so you

could be taking out 662 a thousand

transactions of one ethereum which think

about it every time you do a transaction

it's like getting one ethereum like a

thousand bucks I mean worth the time you

could sit there all day long and do that

right and you spread that out into like

maybe 200 different wallets of yours so

you go into that platform you're like

hey you know what take uh uh 10 ethereum

transactions at one ethereum each put

them into this wallet put 10 into this

10 into this 10 into this and you have

control of all of those little micro

wallets there's no way anybody's ever

going to be able to track down where

that 662 million went because it's all

coming out as one ethereum transactions

and your goal is to just use the most

popular one that exists so there are

instead of just 662 000 one ethereum

transactions coming out there are maybe

a hundred million transactions coming

out with one eth people doing this over

and over and over and over again and so

now you've effectively taken one wallet

with a lot of money and potentially

turned it into hundreds uh if not you

know hundreds of thousands of wallets

that you'd have to track down and

somehow connect a bad actor to that's

really really difficult now you might be

wondering well how do you know how many

times you could go to that tornado and

take a thousand out well when you put

money in you basically get little coupon

codes like the sixty percent off coupon

code linked down below for the programs

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down below uh that expires obviously the

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soon but uh you know you basically you

deposit your money and for every

transaction you deposit you get some

form of coupon that you then use to

redeem a certain amount of ethereum from

the tornado so let's say you get 662 000

coupons and then you go stand at the

other side of the tornado and you're

like cool I'm going to redeem 10 here

send it to that wallet okay I'm going to

redeem 10 here send it to that wallet

okay I'm gonna redeem a thousand here

send it to that wallet all that money

disappears and that money could be your

deposited money in either FTX us or

ftx.com it's terrible it's so bad it's

it's so absolutely bad that this money

can get stolen and the person who steals

it or people who steal it might never

end up getting discovered so again even

though blockchain's transparent it's not

transparent enough for us to actually

know who's doing bad stuff we just know

that somebody is doing bad stuff and

this whole idea that oh but you know

they've got licenses to sell crypto in

the United States the whole licensing

process for crypto doesn't mean they're

actually heavily regulated they're

barely regulated and as I said at the

beginning of the video

they were audited by a metaverse CPA

firm you can't make this stuff up