Guy Who Oversaw Enron Says FTX Is Worse

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 18 November 2022

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Circle and Kraken. Today NLW covers two major updates in the FTX saga. The first is first-day declarations by FTX’s new CEO John J. Ray III that argue that, in short, FTX is worse run than Enron. The second are messages between Sam and a Vox reporter in which Sam lets the veneer of ethics down and reveals his true beliefs about power. - Nexo Pro allows you to trade on the spot and futures markets with a 50% discount on fees. You always get the best possible prices from all the available liquidity sources and can earn interest or borrow funds as you wait for your next trade. Get started today on pro.nexo.io. - Circle, the sole issuer of the trusted and reliable stablecoin USDC, is our sponsor for today’s show. USDC is a fast, cost-effective solution for global payments at internet speeds. Learn how businesses are taking advantage of these opportunities at Circle’s USDC Hub for Businesses. - Kraken, the secure, trusted digital asset exchange, is our sponsor for today’s show. Kraken makes it easy to instantly buy 185+ cryptocurrencies with fast, flexible funding options. You’re covered by industry-leading security and award-winning Client Engagement, available 24/7. Sign up and trade today at kraken.com. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is "Back To The End" by Strength To Last. Image credit: Greg Smith/Corbis via Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	These are not the thoughtful, considered beliefs of a man who has seen the world in all its
0:04.5	confounding agony and inconsistency.
0:06.9	It's freshman seminar nihilism from a boy who found it easier to justify his wanton ambition
0:12.2	by pretending that everyone else was just pretending to.
0:16.9	Welcome back to The Breakdown with me, NLW.
0:21.0	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:26.8	The breakdown is sponsored by nexus.io, Circle, and Crackett, and produced and distributed by CoinDess.
0:34.6	What's going on, guys? It is Thursday, November 17th, and today we're talking about how the guy who oversaw the demise and breakup and bankruptcy of Enron says that FTX is worse.
0:47.0	Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation, come join us in the Breakers Discord. You can find a link in the show notes or go to bit.ly slash
0:58.4	breakdown pod. Well, folks, the hits just keep on coming. Two big pieces of news in the FTX saga.
1:06.7	And unfortunately, that is where we will be focused for today. I will promise you again that starting on Monday, we are in Grateful for Bitcoin Week.
1:14.7	And to the extent that there are any mentions of this, it will only be in passing
1:18.6	it in the context of lessons learned.
1:20.8	All right.
1:21.2	So, as I said, two big pieces of news in the saga.
1:23.4	And the first has to do with revelations from the bankruptcy process.
1:27.0	As you well know at this point,
1:28.4	on Friday, FTX filed for Chapter 11. This has not been a straightforward process. In fact, there is a
1:34.6	jurisdictional battle around where the bankruptcy happens. On Wednesday, the Wall Street
1:38.9	Journal wrote that the Securities Commission of the Bahamas said that John J. Ray III, the new CEO
1:43.9	designated by FTX to oversee
1:45.7	the bankruptcy, did not have the authority to initiate a U.S.-based Chapter 11 proceeding.
	...

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