Gary Gensler’s Crypto Crusade | Roundup

Transcript

[Music] this episode is brought to you by velora velora is a self-custody mobile first wallet and the easiest way to send swap collect and purchase digital Goods on the cello blockchain download the app and start exploring today at valoraapp.com forward slash Empire all right everyone welcome back to another episode of Empire we have uh I thought we were gonna have a glass a glasses list Santi today but alas here we are just annoying I could go glasses because folks I don't read off the script which is probably explains how sometimes I just butcher these episodes but uh no for the most part I have a stigmatism which means I can I can't read on like when I can't drive at night without glasses it's

almost like you know like you're drunk uh you actually get fine like insurance doesn't cover me if I don't have my glasses and looking at a computer screen so it's like this light stuff that I can't it's just really blurry so anyways you got to give me a fresh pair of glasses man I've uh I've been wearing contacts since the first grade I have negative anyone who has bad bad eyesight will understand what this means but I have negative 7.5 eyesight which is really bad that's really really bad yeah well you know maybe in Austin uh I do have a this company that does it uh I always get my friends you got a guy you got a guy for that yeah I got it I'll always get a guy it's a bit mainstream but I got a guy I

got a guy love that you're not you're not shopping at Warby no more no Oliver Peoples used to no longer uh no Warby yeah I've gone through all of those what's the go-to glasses brand these days should we give someone a nice plug or no no free ads I love I love the lake Alpha in this particular case I will not no free ads baby how we uh how you doing uh big you know big week I wouldn't say there's a ton going on but there was some pretty interesting stuff uh yeah you know I've talked to a lot of folks recently um I'm feeling pretty good you know I'm pretty much unchanged from last week uh about some interesting developments how are you feeling uh feeling good we had blockworks beers last night fun event so we've been we we used so blockworks

started out as a company pre-media pre-newsletters pre-podcast any of that just by hosting our first ever thing that we did was host these 6 to 10 p.m happy hours in New York um and like that's how block work started and then like as we started to monetize them and like turn turn those into like a real conference business we um we started just hosting these things called blockworks beers for the community in New York and we stopped doing them in 2019 and I was with uh one of our sales guys uh this guy Max um in at East Denver and we were meeting with a bunch of folks and they were like look there's still there's like no New York crypto scene and there's like no like place for us to come together that's not a big conference I was like oh we used to do these things blockworks

beers and Max was like let's bring them back so we brought it back and it was cool we had like we tweeted it out once we had 250 people register and had like probably 150 people came out last night and good wow where was that by the way uh we rented out some bar and we rented some bar you can do these like weird deals with bars in New York I think everywhere where you're like well if we bring at least 100 people you give us the space for free it's a Wednesday night so you know you'll usually have minimal traffic yeah nice Galaxy used to do these uh back in the day like I remember going to these like 2016 Galaxy did them at uh at that at their office no oh okay well I'm thinking of a different one I'm thinking

of the ones that they did on like Thursday or Friday nights in New York where it was at the restaurant and it turned into the club I may have gone to one of those but no I think these were in their offices uh yeah oh man New Yorkers will know what I'm talking about I think novograts ended up buying the restaurant that they hosted them at not surprising yeah uh no but no it's a good it's a good event a lot of people uh to Empire there that was cool um got to meet a lot of the listeners and basically everyone just told me how much better our show is than uh than Mike's podcast on the margin that was kind of the consensus but we already knew that um Mike would feel for you but keep doing what you're doing you know we were

there at one point once we were there we were there uh I do have a good podcast news actually so we had this big announcement uh and like big podcast drop of another show called a thousand X which is hosted by Avi Feldman and Jonah um and we we launched it on the Empire feed and it's a show like four traders buy Traders and we did one episode and then the compliance teams came down hard on us and uh not not block horse compliance but some other compliance folks and so we had to pause the show but the good news is that a thousand X is coming back uh you can find it on the Empire feed uh fingers crossed for uh episode two first episode in a while of thousand X drops on Thursday so next

Thursday that was next coming back you can find it on the Empire feed very nice that's cool we'll save all the uh tips and trading advice uh which I'm never good at to those folks which are much smarter yeah exactly yeah the big big brain Traders um um let's start with uh let's start with uh Gary ensler uh sure yeah cool did you watch the okay so a little bit of background uh the house Financial Services committee hosted SEC chair Gary Gensler on Tuesday morning to discuss a whole bunch of stuff so we were obviously focused on the crypto side of things but they it was a bigger conversation around climate change and ESG and just like his what what what Gary and the SEC have kind of like done uh in a bunch of different like new and

emerging areas so they're discussing the agency's response to crypto regulation investor Protection security classification ESG mandates um there were uh some some pretty interesting uh and some pretty like whiffed on answers I would say that Gary had um but what was your take from either speaking to people who I know that you know or like kind of close to the scene there or just from from watching this what was your initial reaction so okay my first impression was obviously seeing what most people saw on Twitter crypto Twitter which is a few of the clips where he's being particularly asked to beat the security a number of times and he doesn't basically provide an answer then um there's an

um and there's another clip that was going around which basically you know he just has a bunch of yes or no questions he never answers and basically talks about how he's like you know uh you know Innovations going to China and he's not providing any Clarity a lot of the stuff that we've heard from a lot of folks and so when looked at that you would have thought Hey listen like you know it didn't go very well for for him and then surprisingly I spoke with another person that I consider to be one of the more ex kind of preeminent experts closest to what's going on and um they're taking interpretation was you know yeah like if you just look at those two clips it looks really you know like a win for crypto but by and large

I was surprised to hear that that wasn't their opinion that he actually was very calm even though he was shaking at times uh and you know he it was just part of his strategy so a dog candidly caught me off guard and I don't really we're gonna dig deeper into this probably in the next um week or two we're gonna have a regulatory segment uh kind of on a quarterly basis maybe you know more often depending on how things progress but I do want to that was all I heard and I didn't really probe much this person didn't have much time but um yeah I don't know if you felt that way because the consensus seems to be this was a huge win for crypto look how

regulator like you know Regulators or like congressmen really are pro-crypto and uh you know they're aware that he's not doing a good job and hasn't provide Clarity for the space which is really driving Innovation elsewhere so I don't know what you're if that's your take or if you heard anything differently um from folks outside of crypto I heard that it didn't so like my initial take was wow Gary really really whiffed on this like this was a complete botch um kind of like we got we got him but folks who I spoke to outside of crypto um just in kind of like traditional Capital markets World we're like yeah these things are usually snooze Fest this was more interesting than usual but like it was still a snooze Fest and like there was nothing really important that

that important that was said I thought some of the House Republicans um came down super strong on him and like did did a good job basically and like I think really pushed them and um I think it's abundantly my here's my one sentence takeaway is that if it wasn't clear before it's it's now abundantly clear that the SEC specifically the SEC under Gensler intends to clamp down maybe even shut down most crypto related business in the United States and this includes exchanges on and off ramps um real really anything that's I mean they he's just very anti-crypto I mean he

said that pretty he said that at nearly every token is a security uh completely waffled on on the eth response um I don't know it was pretty it was pretty frustrating like I was watching this and he had that one one response where uh someone asked him if he'd ever held crypto he said he's never held crypto he's never bought crypto and he's never used a crypto protocol and man that was just that was just a bummer to hear because he that's like that's like having a regulator in the 90s or the 80s say you have to use snail mail but then admit to never using email you know and it's like if you would just use this stuff like go make a trade on

uniswap go do it make a five dollar trade on unit Swap and see how cool of an experience it is um go buy an nft on you can see and you're like see what it feels like um yeah so yeah that is uh yeah I saw your tweet I mean that is very perhaps one of the most surprising things right he even thought of course in MIT I'm like guys like why even go to college at this point like I mean this is the whole problem that I had in college it's like how can someone teach you about risk or something of investing if they haven't invested themselves like I I feel like this is a common thing too among like economic professors Finance professors a lot of them certainly come from industry a lot of them are also just really so risk-averse that they haven't even like

touched the stock and I'm like well am I gonna really learn from these people let alone like how are these guys like in charge and and trying to drive some sort of policy making so yeah very disappointing candidly it also almost makes you question like how do these people actually get to office in the first place and the the interesting thing was I think when he first got um appointed um you know everyone in crypto was very encouraging it's like oh this guy like taught a course at MIT like he's going to be very Pro uh you know crypto and it's been nothing but right and so yeah yeah um I think I was gonna say it was a good

segue because this week also to your point around I think it's abundantly clear his stance and his kind of intentions towards really clamping down on the continue to clamp down on the crypto industry what coinbase has done recently you know today announcing that they've uh acquired a license to operate uh in Bermuda they also I think Brian was in London meeting with um you know high-ranking UK officials to talk about his plans and plans of coinbase to kind of continue to operate in the UK and then you know there's a bill passed um uh in the European Union Parliament so we can talk about all of that in this broader context of what's going on in the regulatory world yeah I think coinbase had a really smart move

this week and I I want to get into that in a second but the I mean the Gensler hearing do you like when you see this do you think anything will end up for I think for us like in crypto land we see this and we're like man this was maddening this was I mean he completely botched the answer around uh like is ether security or commodity there were some like remarkable uh I think Tom emmer did a great job uh McHenry really grilled him um Emir kind of took against her to court in terms of like his favorable favorable approach to FTX the impossibly high cost of compliance that they put on the crypto industry uh the the lack of new rule making for crypto uh combined with these like 55 enforcement actions they've taken uh his kind of like Rogue

actions outside of congressional Authority like really took him to court here do you think that they're like well I guess we'll have to ask um uh travinsky and uh and and Rebecca Reddit when they come on the podcast soon but do you think this changes anything or this is kind of a nothing burger for you I don't know part of me wants to believe that perhaps two years ago three years ago we wouldn't have had this type of you know hearing where you know you had like Hester peers and maybe one or two other you know officials that were kind of really out there talking about crypto Pro crypto but now I think what's different now is

that you do have one it's getting a lot of attention whether people listen to it or you know or tuning into it probably not right um but nonetheless I mean I think you have uh elected officials a congressmen really paying attention to this stuff because their constituents care about it I I gotta believe that the reason why we have two three four kind of um you know elected officials really bring this to light and issue a motion to like you know kind of uh replace uh the chairman of the SEC um is largely driven by someone more Junior and his staff saying hey this is a really important topic for our

constituent base yeah so is it gonna matter I don't know I'm not a political expert I think it's going to matter more than it has before which is kind of a May answer but my hope is it in the like in the next election cycle it certainly Bears more weight yeah no I agree with you I mean you have Tom emmer coming down hard and I mean he's the House Majority Whip so yeah I mean that's a great point it's like not the fact that he's a whip I mean it's important right it's not like a random uh or less you know I think that carries more weight I'd say yeah it's um it's pretty remarkable that the political objectives of the chair of one of these three letter agencies can start to just

put companies out of business like they're I mean I want to talk about coinbase and they're pushed into like Bermuda and like where they're meeting into uh uh they were meeting with the UK like you mentioned but like what here's what doesn't make sense to me like how is it even possible for so so the SEC approved coinbase to go public and now they're coming back a year later or two years later and and saying that they're operating illegally right like that has implications not just for coinbase but for investors in the public markets right why are you allowed why did they let me buy coin stock for example but then but then now they're saying they're operating illegally right like how how how's that changed and why are why are we letting

the political agenda of the SEC chair impact these public companies yeah I think one of the more important statements from one of these folks was the role of the SEC should be to create and incentivize Capital formation and robust Capital markets and to your point just now that really is very concerning because it sets a precedent of not only let's forget about crypto here for a second just normal companies like some of the other topics that were discussed was ESG um I'm not particularly an expert on what Cancer's policies towards the ESG have been but that was also a big topic of discussion and in the sense that it's created kind of this you know it is it is harmed Capital markets and by that I think it's what the regulator should

really be focused on is being and historically what makes the US great is it's a it's a system that works it's predictable it is a rule of law that has multiple checks and balances and by and large that gives investors and and you know civilians and whatnot greater sense of security and certainty relative to other places in the world if that all of a sudden gets put in question then you're going to go elsewhere like the European Union or the UK are going to look at that and I think are looking at that and saying there's a big opportunity for us to be more relevant in the global scale on the Innovation front on attracting investors in capital formation and so you know I I look I mentioned this

before in this podcast and I would love to talk about it on in the regulatory pod in the coming weeks and the approval of the gold ETF uh you know I guess decades ago the U.S was very much against approving a gold ETF and European Regulators approved it first I believe and then the U.S saw that there was at a big disadvantage and then approved the gold ETF in local markets I wouldn't be surprised if the the same happens in crypto regulation and I think you're starting to see it just today where UK and EU regulators um are are providing a greater sense of

clarity and process service providers companies investors whatnot to operate and that I think is going to matter significantly that might be really the Tipping Point of what really pushes the U.S in a more Pro crypto stance and when I say Pro crypto it's not that you know tomorrow they're going to come out saying like look nothing's a security or whatever it's more just the lack of certainty is really what's the biggest problem here and it's very I think uncharacteristic of the US because most of the time you have a lot of certainty in the U.S not in other places and in this particular case you're not and so that I

think is is a new whether you want to bucket that in a broader Narrative of like the US dollar debasement and the following like I don't want to get there I think that's you know too far far-fetched but um it certainly impacting today and you're seeing the you know coinbase is not a small company right it employs a bunch of people you know and and so it's going elsewhere yeah I mean you uh also today you had the the mica which is the landmark EU crypto regulation officially just passed uh the the plenary of the the EU uh Parliament so we will I think we will see that continue to happen on that point and I'm not an expert on this because I haven't uh there's great coinbase uh policy guy um that is covering this in particular

and he was supposed to come up with a threat I haven't seen it but when that goes I hope we'll link it in the show notes maybe we'll have them on as well to talk about this it feels like there's a lot of things that are still going to have to be defined in this bill but at least here's my understanding of the mic is that like we don't actually know what the regulations I think it's like step step one but like the TL the the one line summary of this is that one of the world's largest markets the EU is introducing regulations for crypto to protect users and support Innovation and this is I think what we're waiting for in the US now which is like folks are saying look if you want to introduce things that will kind of clamp down on crypto that that's fine that's totally

fine at this point just but but give us the hard line give give us the details basically so I think that's what the I think that's why this Mica bill um and and the European Parliament voting for it and pushing it through is is important is because like they're pushing through really clear guidelines that say this is if you're building a crypto company this is how you have to operate um and I think that's yeah um absolutely uh I don't know perhaps why not noticed by a bunch of folks but uh Hong Kong also now recognizes crypto's property and so that was an interesting development as well uh just goes to show you know places like Hong Kong Dubai have uh really I think recognize an opportunity to attract uh

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so download the velora app today at valoraapp.com forward slash Empire v-a-l-o-r-a app app valoraapp.com forward slash Empire all right let's talk about that coinbase news so this uh this week also coinbase secured uh was granted a license to operate in the offshore Financial Haven of Bermuda as it uh seeks to diversify its business outside the U.S uh coinbase is trying to establish an offshore derivatives Exchange in Bermuda which is a British territory to offer Perpetual swaps to offer perps which have historically been inaccessible in the US due to pretty tight regulatory restrictions so I'm curious uh here's

what you make of this push um yeah I mean I think whether they're going to fill a void that FTX uh used to have uh I don't know but um yeah it's pretty interesting that they're moving this direction and I think some people are speculating that they'll move entirely out of the US I don't know how that will actually happen but nonetheless I mean I think that's part of the lawsuit you know you got to think that they're hedging and and building multiple Avenues in case it really becomes difficult to operate in the US yeah so on Tuesday Brian Armstrong was at the innovate Finance Global Summit I think that's what it's called and someone asked him a question about relocating like could they relocate coinbase outside the US and he said look anything's on the table at this point

yeah yeah um have you heard anything specifically on the laws on the kind of the court date for this uh Wells notice that they received no I haven't but I heard that um I heard that the SEC is incred uh incredibly over I talked to someone who's very Junior there um but they did say that like they're they're very overwhelmed because they're very overwhelmed at the fight that both Ripple and coinbase are throwing at them um they're trying to stack stack some wins and like basically because Ripple and coinbase are fighting them so hard it's taking up all everyone who knows

about crypto at the SEC is now being put on the coinbase and ripple um like kind of task force so I'm sure they're overwhelmed with work right now well I mean to your point I do believe that because they also recently launched uh what was it a enforcement action or against Beatrix so this is like two years two two years late uh is like a complaint of sorts and so yeah I think they're slowly working their way through the stack um perhaps even trying to get easy wins but do you think this is a smart move for coinbase because on so on one hand the US is like openly at war with crypto right and it's kind of like what other

choice does coinbase have on the other hand this like offshore derivatives exchange is very like off-brand for coinbase I would say coinbase has been like kind of trusted reputable brand and when I hear like offshore purpose exchange I'm like oh that's like kind of bit mexy Vibes you know um it's not really a great like it's not really uh what I would think of when I think of coinbase they're like what what do you think of this move in general well first of all I think the U.S saying that the U.S at war with crypto is an unfair statement it's let's not confuse the stands of a particular individual with that of the US because you also you saw the Whip and I mean I think there's

a lot of political Capital that is behind crypto and sometimes it's difficult and I don't want to conflate it with I don't I fundamentally part of me believes and I'm optimistic that the US will change course because this country is just built on Innovation and and I think you know there's a reason why Silicon Valley thrived here and you know I think we'll look back at this as like two year three year blip where you know one particular individual one particularly like under a particular Administration it wasn't Pro particular you know crypto but that's I don't know it's a big generalization so but yeah I know you're look you're back to the more important Point um I don't think it's gonna hurt their credibility obviously people think about oh look FDX

was operating in Bermuda and Bermuda but like you know whether we want to like I feel like it's unfair to say that's gonna hurt coinbase reputation if anything they're taking advantage of a huge void in the market like we talked about another episode someone's going to come in and fill this Gap that FTX had what the what the purpose Market got yeah yeah yeah I mean look uh binance is doing this um there was talks now I mean if you if you wanna yeah like they're trying to relaunch FTX like tribe capital and a few of the existing investors look I've seen crazy I I don't want to dismiss like anything here because is it possible that they relaunch it and it works yeah like is it possible that we'll all get our money back yeah I mean

crypto's rallied right so like a lot of things are possible but let me ask you a question what would you rather where would you rather trade on a relaunched FDX with God knows which management or coinbase coinbase okay obviously yeah I mean yeah I I think this is great for the purpose market right like if it'll be I was I was thinking about what would happen to the to the market just to finance disappeared right and there's really no good options either you go kind of with the like buy bit okx crew or you go where kind of like the liquidity sucks which is like the bitfinex Dera bit bitmex um or like the kucoin crowd you know um

and you can go on chain like you could use Quinta um but you know good to have that cross chain collateral um I think it's just increasing their product Street and you know so you're Pro you're Pro this move this feels like an aggressive move uh also coinbase tweeted out we're more that they're going through this eight-week International expansion Drive yeah um I I think I think this is in many ways it's like no different than like uh if you look at it at a state level like gambling is illegal in some states but not others like it's to say that like one company expands into another state because one you know I mean it it you know you don't have you're basically saying if this is negative for coinbase

you're either thinking that because it went offshore every other company that's gone offshore all of a sudden is sketchy which is not true or that perps and these like products are inherently bad and toxic which also is not true in my opinion because it just adds to Market structure and robustness and liquidity like it allows for the form Capital formation that is important for this Market structure yeah that's it yeah um us Regulators politicians got to get it together uh I feel like they're just fumbling the bag pushing someone like coinbase offshore one of the I think has the opportunity to be one of the most historic companies of this generation and we're pushing them offshore so yeah

definitely fumbling the bag um other things that are interesting this week is definitely slow Newsweek uh flashbots launched Mev share so the highlight of this is um I mean I can just read the kind of news summary and then give my quick take which is that flashbots introduced the beta version of the Mev share protocol which is a permissionless matchmaking protocol it allows users and Searchers to collaborate together and for users to get paid for the Mev that they create uh maybe share if you got if you know me if you boost on it kind of Builds on Mev boost to just continue unbundling the transaction supply chain and my understanding of me V boost was that it kind of enabled this collaboration between the validator validators and the

builders and that Mev share does the same but for Searchers and users um key takeaway here is that I think this is going to be a big theme this year and we're just going to continue seeing like different ways to there are two ways to handle Mev there's like the Mev take which is that you should try to get Mev out of the system and like try to minimize Mev and then there's the mov take which is that you should try to just say that like okay Mev is a thing and we should try to figure out ways to get the Mev back to the user and Mev share is is the latter this is a this is a a protocol from flashbots that is designed to hand some of the power back to the users and my understanding is that now more and more Mev that's

generated by a user's transaction will be as much of that as possible will be returned back to them so yeah yeah pretty cool stuff what those guys are up to um should we talk about uh something I think is a few folks on ease which is um Tay from metamask uh recently or there's a there's a few threads that are going on on from her that is just uh there's an ongoing exploit um and the source of it is still unknown uh and has been targeting uh wallets across 11 different chains I believe and they don't really have they haven't really pinpointed the common denominators or attack Vector here um it seems like and we'll link to the

this uh thread I mean she initially posted over the weekend I think if you like listed a number of wallets and said hey if you have if if you're the person behind this wall get in touch with us and then of course they didn't escalated further and said look there's there's an ongoing like draining of these wallets it's happening it included OG's into space include people that are you know pretty beefed up on security um so unknown there's some speculation and theories that it could be related to LastPass which is that password manager you know if um basically if you've imported that or saved a copy of your private key and a password manager in this particular case LastPass was compromised then you know that might be one one cause the other one was these

folks have entered their private key on metamask or some other wallet and so that exposes the the price basically the private keeps has touched the cloud or the internet then you know it could be problematic um so yeah pretty weird I'd say um that we haven't gone to the bottom of it I think there's an ongoing team that is you know interviewing and collecting kind of diagnosing a lot of the affected users uh I think this particular uh attack has drained over five thousand each and it's been going on for a while apparently so I was uh up late last night

um reading one thread from a particular individual that you know said hey look I panicked I saw Tay's tweet and I was migrating some of my assets on arbitrum and was detailing how you know this person is very I would say sophistic like top five percent top one percent in terms of their security practices like air gap computer you know particular like separate computer just for um for crypto running an operating system not Windows not Mac I forget to keep I forget the exact name but you know pretty pretty beefed up and knowledgeable and uh I was you know I'm fortunate I think you lost a five eth but it seems like that uh and

he then admitted to it after uh was that he just kind of inputted like one of the addresses onto the Orbiter Bridge contract was whitelisted and so he kind of just flipped and didn't really check so it was his mistake not likely not related to this other attack that Tay's talking about um but yeah it was uh I'd say it's been to say that a few of us have been on edge is trying to understand what's going on is is a bit of an understatement I hope we get to the bottom of this fairly soon um and so the thing that we do know just to kind of wrap this up and let me know if you have other input here is seems to be like old wallets so maybe it's something related to key generation

of these particular wallets were created from in 2020 and 2021 right there are some that were uh so the folks getting hacked are like pretty crypto native pretty OG yeah yeah the scary thing yeah so anyways uh what to do is sort of the in these moments uh is probably the biggest question that folks have and um I retweeted one particular one which I I tend to agree with this kind of practice which is look don't panic if you are going to do something be very Vigilant on say for instance you assume okay maybe maybe there's zero day exploit in like the compromised

version of math as kit all these users at one point what do you do right if you first of all get a hardware wallet and you know if if you're not using a hardware wallet I think this is a good opportunity to then perhaps consider um you know buying a hardware wallet and and get familiar with how to use it there are a number of there out there in the market um and and then as an added step of security you can use like a gnosis safe which you know you could get multiple say three or up to I don't know say at minimum three Hardware wallets separate each with their own private key and you have to sign you know um two out of three or three out of five

or whatever logic and so in the event that one particular private key gets compromised you just your assets are still safe presumably if the other two or three private keys that have been generated in a secure manner haven't been compromised right and so you know that's Point number one point number two is I think this horcrux model that you guys have heard me talk about you know that I love Harry Potter you know horcrux just means you know Voldemort shredded you know split his soul in seven different horcruxes same with your wallet right you know you never want to have just all your assets in one particular wallet maybe consider splitting them uh in different places right and so yeah those are probably the two biggest uh you know things that I that I would

do right and so the last comment here I'll say is you know maybe what I'm thinking is a lot of these guys people that have been affected even though they created their wallets a long time ago and they're yeah ogs are supposed to be like really crypto native when you're creating a wallet back in the day like maybe you didn't think much right people that minted punks were like oh you know like I'll maybe I'll use a hot wallet and same with it a lot of people are trading their nfts for a hot wallet by the way I'm not suggesting you do but you know and I didn't think much of it and then five years later those 10 crypto punks are worth a pretty penny right and so I think you always need to go back and you know adjust your security parameters based on the value

that is being secure yeah you know so a lot there uh this is a particularly scary particularly scary one in my mind because this is it's people who have like every variable there's people who have touched multiple different so like uh this isn't just people on a Mac it's people on Mac and PC it's not just Android or IRS it's Android and iOS it's not just metamask users it's Ledger live my crypto Exodus electrum coinme coinbase wallet folks metamask it's not just people who store keys in cloud storage or password managers there were people who def who got hacked but definitely didn't store the keys in a cloud storage or password manager

um sometimes they had multiple accounts sometimes it was only one account so this is yeah this is definitely a concerning one I think the first thing to do by the way Santi before you go create the horcrux just create a new wallet first things first like if you hold a bunch of coin in one wallet just go create a new wallet it takes two minutes um and move your stuff carefully uh into that new wallet and minimize where you you send and store your your recovery phrase check your approvals check your approvals uh this happened and was important during the sushi contract to exploit um the new MasterChef that got deployed you know always you always got to check your approvals um well is it released you're creating a new wallet I would say create a new wallet under a new private key not in

private key because people have access to your private key then you know it doesn't really matter um so so yeah you know I think um well we'll continue to pay attention to this um if Tate wants to come on and discuss further I'd love to have around I think she does incredible work for the ecosystem um the the important thing here is if you're gonna move stuff always always always verify the contract you're interacting with and the receiver so even if you have a hardware wallet um what happened to this particular person yesterday was he didn't care to he or she didn't check the two address send address and so this has happened a number of people that are

very sophisticated way back in the day it happened to Hue from Nexus right he had a compromised version of metamask you open an attachment new like corrupted version of metamask and then that swap the two address you didn't check he was using like a claiming transaction nothing and then boom you know like as well constraint so yep always always check the two function and when in doubt just take time breathe and like be calm I know it's hard so it makes you wonder like this these are the moments where you're like yeah like crypto's not easy and every once in a while like you have to really pay attention to this stuff and I certainly become more aware of what

happens in the cyber security community at large like you know people that are there's like a race and security upgrade across iOS like that apple had to patch and it was discovered by this like white hacker group um so you have to pay attention to all this stuff and sometimes it could be yeah it could be a bit stressful yeah we're not immune to stress it's it's uh it's pretty heavy over there something no man I mean I don't know what to say like I usually uh every time you think you've seen it all in crypto you're just like no no yeah definitely not yeah anything else man

um I didn't wanna I did want to mention something but I'm blanking right now don't think too hard were you uh were you trading Pepe were you uh no no there's like this whole discussion around like all these all coins I've sort of missed about on that to be honest I wasn't paying too much attention but apparently it you know I think it was a good indicator that the Marcos feeling a little Toppy and frothy and so uh I think the day after Pepe like the market just kind of like okay we've had enough of this irrational exuberance let's go down six seven percent yeah there was a uh there was a Searcher from uh with the ens address Jared from Subway Jared from

subway.eath made yeah made 12 000 transactions in a 24-hour span at one point Jared from Subway was taking up seven percent of all the ethereum block space it was on Wednesday I think it was yesterday that um uh this person had a trading volume of 700 million West or wheat whatever you I don't know how you pronounce it 200 million Pepe and 100 million wojak and there was one sandwich that I saw that made made a cool 30k one trade so good work Jared from Subway made made a million bucks on Tuesday wow yeah what bear Market um oh one other like minor tidbit now I remember so Tesla apparently is uh

holding what 300 and chain million and 300 million or so of Bitcoin uh in the first quarter because I think their earnings came out and they haven't uh touched a single one so they just kind of keep holding it so it's fairly interesting Tesla or microstrategy Tesla oh interesting I mean micro study holds like one percent of all Bitcoin right which is way more than that um but no Tesla has some Bitcoin in the balance sheet and uh they have they at least this quarter when the earnings came out that was one piece of uh interesting tidbit that came out true rap I think so short week uh but

sorry what are you doing this weekend I'm gonna try to run nice I run I just can go for a run give your thoughts nice what are you doing hanging hanging relaxing married life I guess nothing exciting I'm getting dumplings in Chinatown tonight tomorrow night New York has great dumplings don't they great dumplings yeah yeah did flushing Flushing Queens for some dumplings last week and this week uh going to Chinatown so so you like assessment yeah what's your favorite dumpling I like the soup dumplings but like what's the inside of the

dumpling uh like a like a good pork dumpling nice very nice when we're talking dumplings I know well I think this is a good way to wrap it up folks whether you like dumplings or not whether you're gonna go running or not have a great weekend um and uh we'll be we'll be here next week we have some good lineups next Monday we've got a banger oh no Tuesday Banger of an episode with uh doodle CEO uh Santi woke up and chose violence that day tough interview I'd say that that you you led their Santi you know talking at this point people uh I I think people appreciated some of the questions that we've been asking some of our guests there was a comment that we were District really all pro crypto and

bullish and we always like to keep a balanced discussion but sometimes you know you gotta ask normal questions and if those come across as stuff I'm sorry we're just trying to get to the truth here and oh you know push the space forward that's all we're really trying to do here folks see you Tuesday folks all right thank you everyone for listening have a great weekend foreign [Music]