Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

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What's going on, guys? It is Friday, November 18th, and today we are once again looking

at contagion and fallout because that is where this industry is right now.

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

breakdown pod. All right, friends, as I said, we are closing out the week following, as we have

been all week, the recent contagion coming out of FTX. And I want to be clear that some

amount of this is speculation, conjecture, and I don't ever want the breakdown to be contributing

to rumors or fear or fud. But the reality is that right now, we've lived through too many

episodes of where there's smoke, there's fire, to write things off with best case scenario

planning. In fact, I think responsibly starting to think through scenarios that give people a

chance to imagine how it might impact them and their assets is within reason the only responsible

thing to do. So we're going to start with Genesis and DCG, as that is where everyone's heads

have been at for the last 24 or 48 hours. Now, to recap quickly, Genesis has had a rough year. They had a huge

amount of exposure to 3-0's capital, some $2.4 billion in loans. Their parent company,

DCG, took over those loans, and is now a $1.2 billion creditor of 3AC.

They had other losses with Babel Finance, their head Michael Morrow stepped down, and now they've

been caught up in FTX as well.

Initially, Genesis said they only had $7 million in exposure to FTX, but revised that

...