Dave and Pretty Much Everyone Else Thinks Sam "Binky" (Sam Bankman-Fried) Belongs in Jail

Dave went live with Jack Mallers yesterday to discuss the shitstorm that is the Sam Bankman-Fried/FTX situation that caught the crypto market with its pants down.

So how did Sam go from crypto's "chosen one" to Tweeting this?

Let's take a trip down memory lane, shall we?

The trouble started earlier this month when Coindesk did some Big J journalism and found out that SBF's trading business (Alameda Research) was propped up by shitcoins created by his crypto exchange (FTX). 

That was a big fucking deal in the crypto space, but at this point Tom and Giselle's checks from FTX were still clearing.

But it appears that one of SBF's enemies, Changpeng Zhao (aka CZ Binance aka the dude that's always spamming Dave's Twitter replies) woke up feeling dangerous…

The Water Coolest - Sammy Sht Coin ran face-first into a buzz saw named Changpeng Zhao aka CZ, the founder of rival exchange Binance. You see, Sam had ruffled some feathers in the crypto space by working closely with regulators.

And, apparently he had thrown CZ and Binance, which are a bit more "free-spirited," under the bus. CZ said he couldn't "support people who lobby against other industry players behind their backs" right before he threatened to unload all $580M worth of FTX's shtcoin (FTT) that Binance owned.

The power move sent the price of FTT plummeting and kicked off a "digital bank run" if you will. Investors lost faith in FTX more quickly than Elon lost control of Twitter, and rushed to pull out their money. The liquidity crunch brought FTX to its knees by Tuesday morning.

Just as quickly as he had been alphaed by his rival, Bankman Fried had to put his tail between his legs and beg for a bailout. In a stunning turn of events, yesterday [Tuesday] morning Sam took to Twitter to announce that a deal was in the works to sell FTX's non-US assets… to Binance. And just a few minutes later CZ chimed in to confirm the news and throw some shade at SBF. 

But, after CZ had a chance to look under the hood he went all "that's gonna be a no from me, dawg."

The Water Coolest - Just a day after offering to bail out FTX, Binance CEO Changpeng Zhao aka CZ has backed out of the deal. His rationale? Sh*t is so bad at FTX, it can't be saved. CZ didn't mince words: "the issues are beyond our control or ability to help."

And he's probably onto something. Sam Bankman Fried, FTX's founder, reportedly told investors that the company was dealing with an $8B shortfall and needed at least $4B immediately to remain solvent. Translation? The exchanges only option at this point appears to be bankruptcy… 

SBF took to Twitter today to "explain" what went wrong. And it kinda sounded like something Zuck would say when he was getting grilled by Congress after he sold your data on the black market.

Rumors have been swirling about what exactly went wrong, what happens next… and if SBF is on the run like he's Harrison Ford in 'The Fugitive'.

Now if SBF was just an idiot it would still suck for everyone involved. But the fact that he reportedly was doing tons of shady shit with FTX user's money (think: making incredibly reckless investments) makes it SO much worse.

If you want more, I hopped on to break it all down with the Barstool Finance guys…