SBF's Legal Woes Continue | Leo Schwartz | TMR

Sam Bankman-Fried's legal problems are just beginning.

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CHECK OUT MORE from the MR crew:

Matt Binder DOOMED

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Check out more from the MR crew:

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Brandon Sutton THE DISCOURSE

Emma Vigeland ESVN

Matt Lech LEFT RECKONING

It is a pleasure to welcome to the program the very patient Leo Schwartz. the reporter at Fortune Magazine. I'm here with Emma Vigeland. Leo is welcome to the program. Thanks for having me. all right so let's get remedial here. I am not good at Finance both personally and maybe in terms of understanding these things. Let's start and then we will work our way to the hearings that took place a week ago. But let's talk about FTX. like what function does it serve and did it serve and is it now I guess? but what function did it serve? like it seems to me it's sort of like an E-Trade if you will for crypto? So within crypto if you want to buy something like Bitcoin or Ethereum or any of the different coins usually you go to a centralized exchange to do so where you pay with fiat currency then you get the crypto token exchange and they host it for you.

so a queer example is Coinbase, a public company in the U.S another one is Kraken finance is the biggest one right now. It's an offshore company. What FTX did was a little bit different so you could go on and buy Bitcoin or ether like on any other exchange. but it was also a derivatives trading platform. so you could do more advanced types of trading. the kind of stuff that's become more commonplace with Robinhood I would say. If you want to do options trading, if you want to do margin trading where you're borrowing Bitcoin, you don't have to bet on the future price of it. and that was one of the reasons it wasn't actually based in the US. It was doing a lot of unregulated types of Trades that were either for very Advanced Traders or people who probably shouldn't be engaging in that type of trading. so Coinbase I have some experience with that because at one point we had this program on Steemit I'm not even sure if it's still around anymore and you remember that and it was like it was developing steam dollars and they converted into Bitcoin. and so like you know I have a couple hundred bucks there and I go and just watch to watch the graph to basically fall. and is that it is Coinbase if I have a thousand dollars in at Coinbase and I've got a thousand dollars worth of bitcoin that's not FDIC insured right? I mean that it can just go away in any fashion whatsoever it seems.