Kevin Zhou, cofounder of Galois Capital, and Jesse Powell, cofounder of Kraken, talk about why FTX collapsed, the warning signs, and whether it’s a catalyst for self-custodial adoption. <h3>Show highlights:</h3><ul>
<li>the root causes of the FTX collapse, according to Jesse and Kevin</li>
<li>whether there were warning signs of all the risks that were to come</li>
<li>the importance of learning from mistakes, even for new people in the space</li>
<li>Kevin's response to the stuck funds in FTX</li>
<li>the debate about utilitarianism and SBF's effective altruism</li>
<li>whether the philosophy behind founders matter</li>
<li>Kevin's and Jesse's theories of how FTX and Alameda lost billions of dollars</li>
<li>how Alameda and FTX's books were commingled </li>
<li>whether people will start using self-custodial wallets</li>
<li>whether the fall of FTX vindicates BTC maximalism</li>
<li>whether regulation has been beneficial or harmful for American customers</li>
<li>the role of venture capital firms and their "mixed incentives"</li>
</ul><h3><a href="https://www.surveymonkey.com/r/unchained2022">Take Unchained's 2022 survey!  </a></h3>Unchained is doing its<a href="https://www.surveymonkey.com/r/unchained2022"> annual survey</a>. Tell us how you think we’re doing and how we could improve, whether it be on the podcast, in the newsletter, or in our premium offering. Looking forward to hearing your thoughts! Thank you to our sponsors!<a href="https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021">Crypto.com</a><a href="http://chainalysis.com/unchained">Chainalysis</a><a href="https://minima.global/">Minima</a>Kevin:<ul>
<li><a href="https://twitter.com/Galois_Capital">Twitter</a></li>
<li>Previous Unchained episodes:</li>
<li><a href="https://unchainedpodcast.com/how-traders-are-thinking-about-the-merge-and-a-potential-ethpow-chain-ep-395/">How Traders Are Thinking About the Merge — and a Potential ETHPoW Chain</a></li>
<li>
<a href="https://unchainedpodcast.com/why-kevin-zhou-believes-ethereum-will-have-3-forks-after-the-merge-ep-381/">Why Kevin Zhou Believes Ethereum Will Have 3 Forks After the Merge</a>.</li>
<li><a href="https://unchainedpodcast.com/the-chopping-block-kevin-zhou-on-why-he-knew-terra-would-crash/">The Chopping Block: Kevin Zhou on Why He Knew Terra Would Crash</a></li>
</ul>Jesse:<ul>
<li><a href="https://twitter.com/jespow">Twitter</a></li>
<li>Previous Unchained episodes:</li>
<li><a href="https://unchainedpodcast.com/jesse-powell-ceo-of-kraken-on-drawing-a-line-with-regulators-ep-61/">Jesse Powell, CEO of Kraken, on Drawing a Line With Regulators</a></li>
</ul><h3>Episode Links</h3>Previous coverage on Unchained of FTX:<ul>
<li><a href="https://unchainedpodcast.com/did-the-bahamian-government-direct-sbf-and-gary-wang-to-hack-ftx-ep-422/">Did the Bahamian Government Direct SBF and Gary Wang to Hack FTX? – Ep. 422</a></li>
<li><a href="https://unchainedpodcast.com/the-chopping-block-why-lenders-didnt-liquidate-alameda-when-it-was-underwater-ep-421/">The Chopping Block: Why Lenders Didn’t Liquidate Alameda When It Was Underwater </a></li>
<li><a href="https://unchainedpodcast.com/erik-voorhees-and-cobie-on-why-ftx-loaned-out-customers-assets-ep-419/">Erik Voorhees and Cobie on Why FTX Loaned Out Customers’ Assets</a></li>
<li><a href="https://unchainedpodcast.com/the-chopping-block-ftx-the-biggest-collapse-in-the-history-of-crypto-ep-418/">The Chopping Block: FTX: The Biggest Collapse in the History of Crypto?</a></li>
<li><a href="https://unchainedpodcast.com/sam-bankman-fried-on-how-to-prevent-the-next-terra-and-3ac-ep-403/">Sam Bankman-Fried on How to Prevent the Next Terra and 3AC</a></li>
</ul>FTX Collapse:<ul>
<li><a href="https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf">First declaration document</a></li>
<li>Unchained: <a href="https://unchainedpodcast.com/ftx-bankruptcy-overseer-says-companys-collapse-is-worst-hes-ever-seen/">FTX Bankruptcy Overseer Says Company’s Collapse Is Worst He’s Ever Seen</a>
</li>
<li>Unchained: <a href="https://unchainedpodcast.com/bahamas-regulator-directed-sbf-to-transfer-ftx-assets-to-government-wallet/">Bahamas Regulator Directed SBF to Transfer FTX Assets to Government Wallet</a>
</li>
<li>SBF tweet: <a href="https://twitter.com/SBF_FTX/status/1591089317300293636?s=20&t=-vNHzZ87-D26_DzK6BvkaA">FTX files for Chapter 11 bankruptcy protection</a>
</li>
<li>Vox interview with SBF: <a href="https://www.vox.com/future-perfect/23462333/sam-bankman-fried-ftx-cryptocurrency-effective-altruism-crypto-bahamas-philanthropy">Sam Bankman-Fried tries to explain himself</a>
</li>
<li>NYT: <a href="https://www.nytimes.com/2022/11/14/technology/ftx-sam-bankman-fried-crypto-bankruptcy.html">How Sam Bankman-Fried’s Crypto Empire Collapsed</a>
</li>
<li>Bloomberg: <a href="https://www.bloomberg.com/news/articles/2022-11-13/crypto-fund-galois-known-for-big-luna-shorts-confirms-40-million-ftx-exposure">Crypto Hedge Fund Galois Confirms $40 Million Exposure to FTX</a>
</li>
</ul> Learn more about your ad choices. Visit <a href="https://megaphone.fm/adchoices">megaphone.fm/adchoices</a>

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Jesse Powell and Kevin Zhou on How FTX and Alameda Lost $10 Billion - Ep. 423

Unchained