Reaction To The Collapse of FTX and Sam Bankman-Fried

**Sam Parr** (0:00)
All right, there's this amazing book called Getting Everything You Can Out Of All You've Got. I read it a few years ago and it changed my life. And the reason I loved it was because it basically talks about how to get and make more money using things that you already have. Coincidentally, today's podcast is brought to you by Business Made Simple. It's a podcast by Donald Miller, who I'm gonna tell you about in a second, but he has this amazing episode that's all related to this book and the things that I learned in this book. It's called How To Make Money With What You Already Have. It's an incredible episode. It talks about all the stuff that I learned in this book. The host is Donald Miller. I didn't know who Donald Miller was up until recently, but over the last 12 months, this is totally by coincidence. It was all separate people. They said, you have to check out Donald Miller. He's amazing. So I'm happy that he's part of HubSpot's podcast network. You can check it out, Business Made Simple Podcast. It's where he coaches you on how to build your business like an airplane, where the cockpit is your leadership, the body is your overhead, the right engine is your marketing, the left engine is your sales. You have to check it out. This guy's amazing. It's called Business Made Simple with Donald Miller.
He predicts that Sam Bankman-Fried is going to get life in prison. And I thought that that was an incredibly interesting prediction.
Bernie Madoff got hundreds of years.
There's this other Ponzi scheme guy that I was reading about based out of Texas who also got like 150 years. And so it's not crazy that that could happen. People who commit these hundreds of millions and billions of dollars of Ponzi schemes, they get life in prison.
All right, we are live. Shaan.

**Shaan Puri** (1:38)
I'm in my official crypto hoodie.

**Sam Parr** (1:41)
What is that?
This is fine.
Oh yeah, that's wonderful. Perfect hoodie for today. This is all I've been wanting to talk about. I purposely haven't texted you about this, because this is all I want to talk about, but like maybe just give like a three to five minute background on what's going on. I think you're the guy that should be doing that. And then I want to tell you some of the more interesting points that I think maybe haven't been covered or are less covered that I think are either hilarious or interesting.

**Shaan Puri** (2:09)
Okay, great. And by the way, should we check if my, I have a $25,000 withdrawal that we will see. We'll see if FTX has any money left. I'm gonna check right now and see if it's come through.
What do you think? Yes or no? Did I get my 25 grand out?

**Sam Parr** (2:27)
I think you probably got it.

**Shaan Puri** (2:29)
I did it on November 9th. It's now November 14th. It said it would happen by today and it is not in the bank account. All right, there we go. Just another disappointment. Okay, so why don't I have my deposit? Actually, it's not even a deposit. They advertise with us and so they paid me inside FTX and I was just lazy and never went through it.
Okay, so basically what's happened, here's the what happened for those who aren't following it that closely. FTX, which is a big crypto exchange, it's a place to go to buy, sell different cryptocurrencies.
It was, I think the number two or three largest exchange in the world used mostly internationally because it was kind of like people all around the world want to buy, I think 90 plus percent of people buying crypto are international and so FTX is huge.

**Sam Parr** (3:21)
Basically, Coinbase, but bigger than Coinbase.

**Shaan Puri** (3:24)
Bigger than Coinbase, Binance is number one. I think there's technically something number two, but really it's like Binance number one, FTX two, and sort of like Coinbase and the others come after that. Okay, so FTX, which was this blue chip thing, and it was seen as this like mega success story. You would see top investors in the world that were investing in this. So Sequoia, which is like a preeminent VC firm plus like 50 others were investing in this. He's on the cover of Fortune Magazine and it says, you know, the next JP Morgan, because he's this young guy who becomes one of the wealthiest men in crypto. They say FTX at its peak was worth about $32 billion and this company is only like four years old, right? So it had this like crazy explosive growth in valuation.