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

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.

Show highlights:

the root causes of the FTX collapse, according to Jesse and Kevin

whether there were warning signs of all the risks that were to come

the importance of learning from mistakes, even for new people in the space

Kevin's response to the stuck funds in FTX

the debate about utilitarianism and SBF's effective altruism

whether the philosophy behind founders matters

Kevin's and Jesse's theories of how FTX and Alameda lost billions of dollars

how Alameda and FTX's books were commingled

whether people will start using self-custodial wallets

whether the fall of FTX vindicates BTC maximalism

whether regulation has been beneficial or harmful for American customers

the role of venture capital firms and their "mixed incentives"

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Kevin:

Twitter

Previous Unchained episodes:

How Traders Are Thinking About the Merge — and a Potential ETHPoW Chain

Why Kevin Zhou Believes Ethereum Will Have 3 Forks After the Merge.

The Chopping Block: Kevin Zhou on Why He Knew Terra Would Crash

Jesse:

Twitter

Previous Unchained episodes:

Jesse Powell, CEO of Kraken, on Drawing a Line With Regulators

Episode Links
Previous coverage on Unchained of FTX:

Did the Bahamian Government Direct SBF and Gary Wang to Hack FTX? – Ep. 422

The Chopping Block: Why Lenders Didn’t Liquidate Alameda When It Was Underwater

Erik Voorhees and Cobie on Why FTX Loaned Out Customers’ Assets

The Chopping Block: FTX: The Biggest Collapse in the History of Crypto?

Sam Bankman-Fried on How to Prevent the Next Terra and 3AC

FTX Collapse:

First declaration document

Unchained: FTX Bankruptcy Overseer Says Company’s Collapse Is Worst He’s Ever Seen

Unchained: Bahamas Regulator Directed SBF to Transfer FTX Assets to Government Wallet

SBF tweet: FTX files for Chapter 11 bankruptcy protection

Vox interview with SBF: Sam Bankman-Fried tries to explain himself

NYT: How Sam Bankman-Fried’s Crypto Empire Collapsed

Bloomberg: Crypto Hedge Fund Galois Confirms $40 Million Exposure to FTX

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