ROLLUP: Redtober Is Here | AI Debt Fears | $102M Ledger Attack | Richard Heart Arrested

David Hoffman (0:04)

Bankless Nation, it is the third week of Downtober. We are, we are not getting uptober. It looks like October is not on the menu. Kind of was the same exact thing that happened last year. Happy one year anniversary, Ryan, this week of 1010 That happened one year and five days ago.

Wow, it's been a while.

Ryan Sean Adams (0:24)

You said this was like last year, but like last year was a lot worse than this. I just like to say, we were not that down that much. Like last year was like the end of crypto's fourth cycle.

David Hoffman (0:32)

October last year started with a hint of bullishness and then quickly rose to be very, very red. And so that is a repeat of last year.

Ryan Sean Adams (0:43)

We're turning red, aren't we?

David Hoffman (0:43)

Last year, Bitcoin started at like 120,000 and then ended at like 80 or 90,000 or something. And we started this month or even last month in 60,000s or ending 80,000s last month. And so the direction of travel is quite different.

Ryan Sean Adams (1:01)

Every month, we start out with the roll ups, saying the words, October curses the month. Okay. And it's bound to be a down tober instead. Or like a blood red tober.

David Hoffman (1:11)

It's not just us though, everyone in crypto does that. In addition to down tober in the crypto markets, we also got a flush coming out of the AI sector of the traditional stock markets, both in the United States equities markets, but also the Korean stock market, down 23% blowing back into the NASDAQ and the S&P. The AI credit part of the AI infrastructure build out starting to show some cracks and maybe is blowing back into Bitcoin, into crypto or maybe not. Ryan has a take.

Ryan Sean Adams (1:43)

I do have a take on that. I don't know if it's the best informed take, but I do have a take, David. Also, I have a take on the attack on the ledger wallet supply chain. Okay, somebody was implementing a spy sort of device inside of ledger wallets, the hardware wallets, you guys know, that would read your seed phrase during setup and beam it to some hackers that would then steal your funds. Over 100 million in funds stolen this way. How deep does this attack go? We're also going to talk about the Bank of America.

Apparently, they had been ignoring some suspicious activity, a little bit of terrorism, a little bit of drug cartels, money laundering.

David Hoffman (2:24)

It's a little bit of crime.

Ryan Sean Adams (2:25)

Yeah, five billion worth, and they were fined by FinCEN this week. CZ has some thoughts on that fine, actually, having been there before. What else we got?

David Hoffman (2:36)

Richard Heart, we have not talked about that name in a very, very, very long time. Good riddance as well.

Was arrested in Istanbul on an Interpol red notice. The law finally caught up to him. We're going to talk about the saga and how it all concludes. And I have a take about the Hexicans that I want to share with you as well.

Ryan Sean Adams (2:55)

That's great. Can't wait.

David Hoffman (2:56)

And we're also going to talk to Ryan about PaperTrade.

Ryan Sean Adams (2:59)

Yeah, what is this thing? What the heck is this thing?

David Hoffman (3:01)

I know Ryan has been just dying to get his hands on a way to go 1000X long in any particular direction.

Ryan Sean Adams (3:06)

Is that what we're doing?

David Hoffman (3:07)

So we're going to talk about what it's been like in PaperTrade 10 days in or so. But let's start in the crypto markets. Bitcoin is down 2.5% on the week to 82,500. I think we actually are recovering a little bit at the time of recording, at least some of the down market coins, but overall down 2% on the week. I think there was a lot of bullishness as the Bitcoin price broke through the previous May highs of this year into 85, $87,000.

We are now below the May highs, and so people are now worried about, I don't think we're worried about setting a lower low, but I think people are worried about setting a higher low, but going down nonetheless. Like the whole Ben Cowan, bearish until the midterms take seems to be coming back into focus, back into view.

Ryan Sean Adams (3:58)

And so- I thought he reversed on that though. He did reverse on that, right?

David Hoffman (4:02)

He didn't quite reverse on it. He said that he was wrong about getting new highs above the May highs, but he still like held out like room for like, the midterms could still be rough. I was just wrong about having like a new high set in this year.