Bitcoin Hit By Crypto’s Biggest Hack Ever — Transcript

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1. 0:02Welcome back
2. 0:04to Crypto's R Us. I am George.
3. 0:08We're all George.
4. 0:09Welcome to another market open stream.
5. 0:12Happy Friday.
6. 0:15[snorts] Is it happy Friday today?
7. 0:18Probably not.
8. 0:20Binance,
9. 0:22the largest crypto exchange on the
10. 0:24planet,
11. 0:26just had the biggest hack ever, over 6
12. 0:30billion dollars.
13. 0:32So, I know most of you guys already know
14. 0:33that, but it got I got a few other
15. 0:37stuff to talk about, some updates with
16. 0:39it. And then also, you know, US market
17. 0:42is completely red today due to bad
18. 0:45earnings. So, today's not a happy
19. 0:47Friday. It's a red Friday. But,
20. 0:52let's talk about it.
21. 0:53All right. Let's do it, guys.
22. 0:56Let's do it. Welcome. Welcome. Welcome.
23. 1:00So, unfortunately, you see we are
24. 1:02starting out the day right around
25. 1:04$77,000. And yesterday, we were, you
26. 1:08know, 80 81, right? On this grand scheme
27. 1:12of things, it's not so bad. But,
28. 1:15obviously, I've been saying, "Hey, you
29. 1:17know, holding 80K has been awesome."
30. 1:19It's a good psychological level to be
31. 1:21above. And unfortunately, we broke below
32. 1:24when
33. 1:26we had this big hack happen, right? And
34. 1:29it doesn't help that some of the other
35. 1:32macro things or earnings is bringing
36. 1:35things down as well. But,
37. 1:38uh today, we're starting out Oh, Nasdaq
38. 1:41was minus 700 minus 600 for Nasdaq. I'll
39. 1:44get to that in a little bit. Let's jump
40. 1:46right into this, though.
41. 1:48All right. So, yesterday,
42. 1:50in the middle of the afternoon,
43. 1:52I, I saw an ex you know, this, this site
44. 1:54I never seen before or this account I
45. 1:56never seen before reported that, "Hey,
46. 1:58according to our AI, something's fishy
47. 2:01with all these
48. 2:03hot wallets from Binance, which are, I
49. 2:06guess, the deposit wallets; they're
50. 2:07transferring all their crypto
51. 2:09somewhere."
52. 2:11Now, they didn't know if this is
53. 2:13malicious or Binance just moving some
54. 2:15funds.
55. 2:16And then after $2 billion was moved,
56. 2:20then everyone else started paying
57. 2:21attention and Binance said, "Yeah,
58. 2:24we're we're getting hacked." Um and that
59. 2:26number kept going higher and higher and
60. 2:30higher. Went to 5 billion and now the
61. 2:33overall number 6.3 billion dollars.
62. 2:39This is no joke. This this could be the
63. 2:42biggest
64. 2:44theft ever. Not just cryptocurrency
65. 2:46theft,
66. 2:47but like in terms of just theft overall,
67. 2:50could be the biggest
68. 2:53ever in history.
69. 2:55Um
70. 2:57Now, Binance Now, CZ is so funny about
71. 3:01CZ because he's no longer the leader.
72. 3:03He's not the CEO. He's not the leader of
73. 3:05Binance, supposedly.
74. 3:07Okay, but he's the one that everyone
75. 3:09looks at.
76. 3:10Um
77. 3:12you know, he was tweeting yesterday
78. 3:13about yeah, don't worry, you know,
79. 3:15we Binance will get covered even though
80. 3:17I don't work for Binance.
81. 3:19Like, okay. Um I guess he has inside for
82. 3:23information or he's still the chairman.
83. 3:25I don't know, but he's definitely still
84. 3:27with Binance. And I was wondering how
85. 3:31high does the number have to go before
86. 3:32they say, "Don't worry about it." Uh
87. 3:35probably they will never say that until
88. 3:36they go bankrupt. But,
89. 3:39they said their SAFU money, which is
90. 3:42secure asset fund for users, will fully
91. 3:45cover this. So, there's no problems.
92. 3:47Okay, they I don't know how much they
93. 3:49have in there. Could be tens of billions
94. 3:51of dollars.
95. 3:52But, still losing 6.3 billion is no
96. 3:56joke. Now, Tether and
97. 4:00Circle have frozen a lot of the USDT.
98. 4:05So, some of it will be recovered, but a
99. 4:08lot of it
100. 4:10will not.
101. 4:12Um and in terms of who did it, of
102. 4:15course, everyone's pointing to North
103. 4:17Korea, their Lazarus Group, very
104. 4:19sophisticated hacking group.
105. 4:22Right? They were the ones behind some of
106. 4:24the largest crypto hacks in the past.
107. 4:26Um
108. 4:28all the bridges that we saw the hack for
109. 4:30like 600 million or 100 million or
110. 4:32whatever.
111. 4:35So, all due to Lazarus, so uh
112. 4:39or at least we're pointing fingers to
113. 4:40them. I don't know. They They haven't
114. 4:41really come out on any of them and and
115. 4:43claimed credit. It's just that people
116. 4:46are equating to it.
117. 4:48Um
118. 4:50[clears throat]
119. 4:51Now, getting all that money out
120. 4:55is tough because now all the exchanges
121. 4:58are freezing, you know, all the stable
122. 5:00coin makers are freezing.
123. 5:02Uh a lot of things being freezing, the
124. 5:04frozen, but Binance
125. 5:07their hackers split 1.4 billion
126. 5:12of Bitcoin into 19 wallets that no one
127. 5:14can freeze.
128. 5:16But, they're just sitting there. Can you
129. 5:18ever cash it out? Can you ever spend it?
130. 5:21That's the question.
131. 5:23Right?
132. 5:24So,
133. 5:27don't know. Don't know.
134. 5:29Because, you know, in order to cash out,
135. 5:33you need to send that Bitcoin somewhere.
136. 5:35Or if you're going to try to spend it,
137. 5:37it's all going to be tracked. Right? On
138. 5:40chain. It's really hard. You have to
139. 5:42like try to mix it with Tornado Cash or
140. 5:44something, but when it's that many and
141. 5:47that much in amount, it's it's just
142. 5:49really hard to try to convert, swap, and
143. 5:53use Tornado Swap or any other swap to
144. 5:55like kind of mix it. Um
145. 6:00So, yeah, that's the thing. So, most of
146. 6:01it is just held in wallets.
147. 6:03It's not doing anything.
148. 6:05Right? But it's still there.
149. 6:08Uh obviously it caused a lot of fud.
150. 6:12Institutional investors probably uneasy,
151. 6:15probably some retail investors, you
152. 6:18know, a lot of people are feeling
153. 6:20uneasy.
154. 6:23Um
155. 6:25Yeah, I mean, when when a large hack
156. 6:28like this, even myself, I was wondering
157. 6:31is this something bigger?
158. 6:32Did they find exploit in a chain maybe
159. 6:35that
160. 6:37that would allow hackers to hack other
161. 6:39exchanges, right? Like I I was thinking
162. 6:42that too. So, I don't you know, it's the
163. 6:44right way I thought. I right now it
164. 6:47seems like it's just only limited to
165. 6:49Binance, but there was
166. 6:51exploit or this one
167. 6:55that may have amplified losses. So,
168. 6:57there's an improvement protocol on 7702
169. 7:00with Ethereum.
170. 7:02Um
171. 7:03they have
172. 7:05I guess
173. 7:06I don't know the technicals, but it does
174. 7:08allow wallets to be drained or could be
175. 7:12drained.
176. 7:15And this is this is the improvement
177. 7:16protocol. This is built in within
178. 7:18Ethereum. So, a lot of people thought
179. 7:19that this was the reason why a lot of
180. 7:22the alts and Ethereum was hacked from
181. 7:25Binance, but it seems like it wasn't,
182. 7:27but it could have amplified things. So,
183. 7:29like things like this
184. 7:31you know, makes you wonder should you
185. 7:32trust any of the exchanges at all?
186. 7:35Right? It's just It's just really tough.
187. 7:38And
188. 7:39and even Ave, you know, they were
189. 7:42affected. I think Ave themselves are
190. 7:43fine. They're they're
191. 7:45you know, their smart contracts is fine,
192. 7:48but
193. 7:50the hackers borrowed 44.6 million
194. 7:53through Ave with stolen funds.
195. 7:56Right?
196. 7:57So, yeah.
197. 7:59A lot of
198. 8:01bad stuff. A lot of bad stuff. Again,
199. 8:05we're in October.
200. 8:07People have reminded me that
201. 8:11last year
202. 8:14something similar happened.
203. 8:17Uh some of you guys remember that 10/10
204. 8:19day where we had this biggest
205. 8:22liquidation event ever.
206. 8:25Also led by Binance. I forgot the the
207. 8:29the situation, but something happened;
208. 8:32caused some kind of de-pegging, and then
209. 8:35it caused a whole lot of people to panic
210. 8:38sell, and then it
211. 8:41escalated from there. And I forgot
212. 8:43exactly all the details, but
213. 8:462 years in a row, something big happens,
214. 8:50and it's due to Binance.
215. 8:55You make your own opinion about that.
216. 8:59All right. Outside of this, uh the US
217. 9:02market also isn't helping the situation.
218. 9:06Okay, yesterday Amazon reported, Intel
219. 9:09reported, both came in lower than
220. 9:12expectations, and right now Intel's down
221. 9:16almost 30%. Amazon's recovering a little
222. 9:18bit, minus 2.8%, but still neither one
223. 9:22impressed
224. 9:24investors. So, that's what's
225. 9:26contributing, and Google had uh earnings
226. 9:29that wasn't good, so that's why Nasdaq
227. 9:32is looking so red right now. So, this
228. 9:34also isn't helping in the situation.
229. 9:36What's also not helping is
230. 9:39the war.
231. 9:41Iran just takes four tankers,
232. 9:45and the US, and you know, Trump still
233. 9:48deciding what to do.
234. 9:50Do something now, or wait until midterms
235. 9:52is over, which is only in a week, right?
236. 9:54I think we're going to wait, but still
237. 9:57can you just let them do whatever they
238. 9:58want right now, right? They're being the
239. 10:00US is being tested.
240. 10:04So, this also isn't helping things.
241. 10:11Yeah, we're still at minus 500. Oof.
242. 10:14Um all right. Moving on.
243. 10:18We did have a positive inflow yesterday,
244. 10:21plus 17 million, which
245. 10:23is a positive.
246. 10:25Uh not so much for ETH.
247. 10:27Not so much for SOL.
248. 10:30A little bit for XRP, but yeah, right
249. 10:32now the strength is in Bitcoin, for
250. 10:35sure. ETH and SOL have gotten a little
251. 10:37weaker, especially after yesterday. A
252. 10:39lot of alts
253. 10:41got weak. People sold off. I don't know
254. 10:43if the hackers were able to sell
255. 10:45anything. I think if they did, it would
256. 10:47be much worse.
257. 10:50But right now,
258. 10:52uh Bitcoin is still
259. 10:55holding the strongest.
260. 10:57Uh Binance reserve still holding. Yeah,
261. 11:00I like I don't know how much they really
262. 11:01have in their reserves.
263. 11:03Because a lot of people said that, oh,
264. 11:05you know, they have 100 something plus
265. 11:06billion.
266. 11:07You know, that that that's not their
267. 11:09crypto. That's like all the users and
268. 11:11institutions and stuff, right? So, it's
269. 11:13not like they can
270. 11:15just give out 100 billion worth of
271. 11:16crypto.
272. 11:18Uh
273. 11:18no, but I would like to know, I'm
274. 11:21curious to see like how much they have
275. 11:23in their
276. 11:25SAFU,
277. 11:26you know, reserve, whether it's like 10
278. 11:29billion or 20 billion.
279. 11:32Don't know.
280. 11:36Uh what else? Some good news and not so
281. 11:38good news. Strategy,
282. 11:41okay, is looking to buy
283. 11:46more Bitcoin, obviously. And more
284. 11:48strats. They just announced yesterday
285. 11:49the daily
286. 11:51daily dividend thing.
287. 11:53Um however,
288. 11:56I saw this. Their CFO just resigned.
289. 12:01Right after a quarterly
290. 12:04report.
291. 12:05Right? Normally, now.
292. 12:09Now, Andrew Kang said it's due to
293. 12:11personal reasons, but normally speaking,
294. 12:15when you have a high executive,
295. 12:17especially in
296. 12:20finance or controlling finances or
297. 12:23crunching the numbers like a CFO, when
298. 12:26they all of a sudden depart and it
299. 12:28wasn't announced ahead of time,
300. 12:30that's usually not a good sign.
301. 12:34Something is going on, right? Don't know
302. 12:38what it is,
303. 12:40but it's not a good look that he resigns
304. 12:44right after a quarterly report.
305. 12:46Like he could have waited a week, could
306. 12:48have waited a month, could have done it
307. 12:50a month ahead of time, but to
308. 12:52to resign right afterwards
309. 12:56is not a good look. So, I don't I don't
310. 12:57know what's going on. I mean, obviously
311. 12:59Saylor does and he's doing a lot of
312. 13:01complex leverage stuff with his
313. 13:03products, with his shares and strategy.
314. 13:07But uh
315. 13:10we'll have to see.
316. 13:12We'll have to see.
317. 13:13Uh what else? Coinbase bought another
318. 13:16643 Bitcoin. So far, Coinbase seems to
319. 13:19be secure, no hacking attempts,
320. 13:23nothing out of the the usual, which is
321. 13:26good because
322. 13:28you know what? Binance overshadowed
323. 13:31other hacks that happened.
324. 13:33Uh we're just getting hacked left and
325. 13:36right right now. Like it's it's actually
326. 13:39kind of crazy. Uh I'll get to I'll get
327. 13:41to that in a little bit, but uh we do
328. 13:44have
329. 13:45we do have good long-term holders.
330. 13:49They're still staying strong
331. 13:52despite all the sell-offs, despite the
332. 13:56liquidations, right? Yesterday was one
333. 13:59of those big ones.
334. 14:011.63 billion.
335. 14:05It's one of the largest liquidation days
336. 14:07ever, once again.
337. 14:12And it's due due this hack, due to macro
338. 14:15conditions, due to earnings report. You
339. 14:19put it all together, you had a lot of
340. 14:22people lose a lot of money or all their
341. 14:25money. So again, when you play with
342. 14:27leverage, you got to be careful. But it
343. 14:30does The good thing is, normally when we
344. 14:33see something like this, when we see
345. 14:35like a wipeout,
346. 14:38a clearing,
347. 14:40okay? That sets us up for recovery. So,
348. 14:43normally speaking, that's what happens.
349. 14:49And if you're a chartist,
350. 14:51this is actually
351. 14:53pretty normal. Coming up from 2022's
352. 14:56bottom, after we had first hit like
353. 14:5934,000-ish or something or 30,000-ish,
354. 15:02we weren't able to break it.
355. 15:04And we actually went back down to this
356. 15:07100-week EMA as a support a couple times
357. 15:10before we finally broke through. And
358. 15:12that's exactly what happened. And some
359. 15:14people have pointed out that we probably
360. 15:16will hit it,
361. 15:17we'll probably retrace back down, and
362. 15:19that's exactly where we are. So, some
363. 15:21chartists will say this is completely
364. 15:23normal and why we're actually holding
365. 15:25where we are.
366. 15:29And
367. 15:30a reminder that every time
368. 15:33we do have a major collapse or reset,
369. 15:37right? Or a hack,
370. 15:40we then
371. 15:43recovered and made a new high
372. 15:46afterwards, every single time. So, this
373. 15:48goes to show you
374. 15:50Bitcoin is resilient. It does not care
375. 15:54about what's going on. It may be
376. 15:56affected short-term, but long-term, it
377. 15:59just keeps on going and going and going
378. 16:02and going.
379. 16:03And most people don't even remember
380. 16:05these.
381. 16:07All right. I do. I But I I forgot. Like
382. 16:10I forgot about Bybit, they were hacked.
383. 16:12It was huge last year.
384. 16:14FTX obviously fell,
385. 16:17right?
386. 16:19Binance again
387. 16:21Bitfinex, Mt. Gox. Oof.
388. 16:24The list goes on and on and on.
389. 16:26Uh yesterday also, Polymarket got
390. 16:29hacked. So, I saw some people say that
391. 16:32they lost a lot of money. Uh it's due to
392. 16:34some third-party breach. Some people
393. 16:37just got their their wallet drained and
394. 16:41uh their entire
395. 16:43you know, events got
396. 16:46got sold off or whatever. So,
397. 16:49yeah, so even Polymarket got hacked.
398. 16:52Maybe not fully, but I know a lot of
399. 16:54people were talking about they lost they
400. 16:56lost money on Polymarket. So, I don't
401. 16:58know what they're going to do if they're
402. 16:59going to
403. 17:00um
404. 17:02if they have reserves that they could
405. 17:03give out. I I don't know. But, yeah, I
406. 17:05mean,
407. 17:06people just overlooked this because of
408. 17:08what happened with Binance. But, like,
409. 17:10right now we're getting hacked left and
410. 17:12right.
411. 17:13Even Trezor
412. 17:15says that some of their hardware
413. 17:17wallets, you know, we talked about how
414. 17:19Ledger
415. 17:21the ones sold through Crypto Billies,
416. 17:22they had this hardware implanted. So,
417. 17:24people lost their money.
418. 17:27So, Trezor is also saying that maybe the
419. 17:30ones that sold
420. 17:32by Crypto Billies may also have it
421. 17:35inside. So,
422. 17:38if you're in like Asia and you bought a
423. 17:40Trezor Ledger not from the companies
424. 17:43themselves, you probably should and just
425. 17:45get to a new wallet. Don't
426. 17:49don't don't risk it. Okay? So,
427. 17:53yeah.
428. 17:56Yeah, today's just one of those days.
429. 18:00Not a
430. 18:02not a happy happy cheerful Friday.
431. 18:10All right.
432. 18:13Let's do some Q&A.
433. 19:06>> Well,
434. 19:07if you look at it this way, doesn't look
435. 19:09so bad.
436. 19:11We basically fell down.
437. 19:16We fell down to September level,
438. 19:20which kind of sucks,
439. 19:22right? We were definitely trying to
440. 19:24breach 87.
441. 19:27That would have propelled us into the
442. 19:28'90s.
443. 19:32But on grand scheme of things, we're
444. 19:33still way better, way better than the
445. 19:36months beforehand where we were stuck in
446. 19:38the'60s, right? But
447. 19:41yeah.
448. 19:43Stocks not doing well. Man, man, if you
449. 19:46look at
450. 19:47Coinbase is down
451. 19:5012%.
452. 19:52Coinbase didn't get hacked,
453. 19:54but man, they're being sold off. I mean,
454. 19:57the US market's so ugly right now.
455. 19:59MicroStrategy is down 10%.
456. 20:02Robinhood is down almost 8%.
457. 20:06All right? Like Intel is down like
458. 20:10godly amount, 30%. Basically, all of
459. 20:13their gains have been wiped out. Like
460. 20:15all this wiped out.
461. 20:17Um
462. 20:18the US market is just looking so bad
463. 20:21right now,
464. 20:22and that doesn't help the situation. So,
465. 20:24now SOL is down about 6%today.
466. 20:30Bitcoin is down about 4 and 1/2, a
467. 20:32little bit less.
468. 20:48But, like I've been saying,
469. 20:52after every
470. 20:54liquidity event, after every dip,
471. 20:59every scary moment,
472. 21:03we recover.
473. 21:04We recover. We always do.
474. 21:07It's just that it sucks at the moment,
475. 21:08and of course we have to wait longer.
476. 21:11And it does seem like there's no chance
477. 21:15of us turning green for October. Unless
478. 21:18things flip really fast between now and
479. 21:21tomorrow.
480. 21:22So, it may We may have to cuz
481. 21:25continue the tradition of a red October,
482. 21:28when normally it's green. Last year we
483. 21:31had the same thing. We had a huge
484. 21:32liquidation event. This year we have a
485. 21:35huge hack.
486. 21:36Both from
487. 21:38Not from, but Well, no, it is. I think
488. 21:41both from
489. 21:43Binance.
490. 21:44Um
491. 21:46and that's uh that's unfortunate. So, I
492. 21:48guess we'll just have to wait until
493. 21:49November, see what happens leading up to
494. 21:53midterms and what happens afterwards.
495. 22:21Uh George, you did warn about keeping
496. 22:24all crypto hot wallets after this hack.
497. 22:26It's best
498. 22:27to [snorts] move more to cold wallets
499. 22:29and hot wallets. Yeah, I mean cold
500. 22:31wallet is always going to be the best.
501. 22:33Okay, but there are
502. 22:36there are things you need to worry
503. 22:38about, too, right? Obviously your your
504. 22:40secure your your private
505. 22:43private key or your recovery phrase.
506. 22:45Those are the most important, not the
507. 22:46password.
508. 22:48Um
509. 22:50and you got to make sure that you don't
510. 22:51have a device that was sold by
511. 22:53third-party, which also is concerning.
512. 22:57So, as long as you play it safe and you
513. 23:00do it right, keep it offline. That's why
514. 23:03it's called cold wallet. And your phrase
515. 23:08secure, you're good. You're good, right?
516. 23:10It's still going to be better than
517. 23:12exchange.
518. 23:13Um I mean this case, if you're going to
519. 23:16trust exchange,
520. 23:18you trust the bigger ones because they
521. 23:20have do they do have reserves and they
522. 23:22can,
523. 23:23you know, pay people off, but still,
524. 23:26you know, they Binance stopped
525. 23:28withdrawals. So, if you wanted to
526. 23:30withdraw, you can't. If you wanted to
527. 23:32spend it, you can't. Some people have
528. 23:36had their accounts suspended.
529. 23:39You know,
530. 23:42there are
531. 23:43trade-offs, right?
532. 23:54Well, Josh just sent me this.
533. 23:59Don't know what this is about.
534. 24:05Elon, for some reason, trolling a
535. 24:07multi-billion dollar hack and CZ's
536. 24:09threatened to full stack dump his share
537. 24:11that helped him buy X.
538. 24:34>> Well, Elon didn't really troll, but you
539. 24:36know, Elon is what Elon is.
540. 24:40So, CZ says that, you know, this is one
541. 24:44of his tweets. CZ said that losses will
542. 24:46be a little bit higher, but we'll cover.
543. 24:49And then, of course, people can't help
544. 24:52but equate CZ with SBF. And there was a
545. 24:56lot of trolling like that and
546. 24:58and pictures and stuff. And then, Elon
547. 25:00did his little smiley face.
548. 25:03Cuz I think Elon just thought that was
549. 25:04funny. And then, CZ
550. 25:07got pissed off.
551. 25:11Uh
552. 25:14Our SpaceX shares from our 500 million
553. 25:17investment in your Twitter to take over
554. 25:19are worth more than a billion. Would
555. 25:21appreciate it if you show a little
556. 25:22support.
557. 25:24So, CZ's not really threatening to dump,
558. 25:27but saying, "Hey, without me,
559. 25:31right? You would have never been able to
560. 25:33buy Twitter
561. 25:34and then never been able to
562. 25:42I don't know, never, but without that
563. 25:44investment, he probably would not have
564. 25:46been able to buy Twitter.
565. 25:48Because Elon needed to borrow a lot of
566. 25:50money for that. And then, obviously,
567. 25:51that led to XAI, then merged with
568. 25:56SpaceX.
569. 25:59But basically, CZ is like,"Stop it.
570. 26:02Stop it.
571. 26:04I'm not a normal
572. 26:07normal person, I guess, right? I'm
573. 26:10actually a large investor in your
574. 26:11company.
575. 26:19But see, you see you see how it's
576. 26:21worded, our SpaceX shares?
577. 26:25So, is that Binance's or his? Because CZ
578. 26:29still maintains that he's not
579. 26:31with Binance. He's no longer in control.
580. 26:35All right, when he went to uh prison for
581. 26:384 months or however many months, he said
582. 26:41he had nothing to do with Binance again.
583. 26:44Uh
584. 26:46and then all of a sudden when he got
585. 26:47released, he is with Binance again. I I
586. 26:50don't know. Like I don't know his real
587. 26:52relationship. Obviously, he's the man
588. 26:55that everyone looks at, but like his
589. 26:56true power probably probably he still
590. 26:59has all the power. He's just trying to
591. 27:01downplay it.
592. 27:03I'm guessing.
593. 27:44Uh the part about the hack that about
594. 27:47the part about the hack was bypassing
595. 27:49Binance signatures that approve
596. 27:51transfers.
597. 27:52I don't know. There's still a lot of
598. 27:54there's still a lot of speculation on
599. 27:56what what happened. So, I guess we don't
600. 28:01dev laptop that was
601. 28:06that was used or his credentials was
602. 28:08used and whether the private key
603. 28:11you know, because there was many many
604. 28:12many many wallets hacked. It wasn't just
605. 28:14one.
606. 28:16So, was it like
607. 28:18did they share somehow a key to all
608. 28:20these wallets, which I don't even think
609. 28:23it's possible, but
610. 28:25um
611. 28:28Yeah, yeah. I don't know. There's just
612. 28:30there are just a lot of
613. 28:32speculation on what what happened. So, I
614. 28:36guess we'll have to see when the full
615. 28:37investigation is over
616. 28:39and they report it.
617. 29:14Today is still looking pretty
618. 29:16pretty nasty.
619. 29:21Oh, they even reported this on CNBC.
620. 29:23[laughter] What I just showed you guys.
621. 29:37Sometimes just seem though Elon does not
622. 29:38give a about anything. He'll just
623. 29:40comment on everything without really
624. 29:42thinking about it.
625. 29:44[snorts]
626. 29:45Which is good and bad. I mean,
627. 29:50Elon says a lot of on X, which
628. 29:52people love, right? And he like fights
629. 29:54with everyone.
630. 29:56Uh but the the the the one thing you got
631. 29:58to respect Elon for if you're even if
632. 30:00you're not a Elon fan
633. 30:02is the fact that he will allow his own
634. 30:04enemies
635. 30:06to use his platform.
636. 30:08That's the thing. It's like, no matter
637. 30:11what, no matter who he hates,
638. 30:15he still allows them to use X, right?
639. 30:18Like, for example, Sam Altman of OpenAI.
640. 30:21Elon hates him. Hates him.
641. 30:25But Sam is still tweeting out all the
642. 30:27time and
643. 30:29ChatGPT and Codex, you know, their team
644. 30:32members are on X all the time, right?
645. 30:36So, that's the one thing that you really
646. 30:39got to respect Elon for is like even the
647. 30:42people that he hates, his enemies, he
648. 30:44allows them to use his platform.
649. 30:47Which is
650. 30:49which is crazy.
651. 30:51Josh said, "I don't know I don't get how
652. 30:53Elon apparently works so much
653. 30:55and how he tweets so much." Yeah, I
654. 30:57mean, he he you know, he must be so
655. 30:59addicted to his phone. He he like
656. 31:01randomly tweets and replies to random
657. 31:03people about all things.
658. 31:06There's no need for him to do that.
659. 31:08I mean, X is doing well.
660. 31:11Uh I know he wants to like push it
661. 31:13further, but
662. 31:15yeah.
663. 31:19He normally just comments on AI stuff
664. 31:20now. Like all things AI, not really
665. 31:23crypto or doge or anything anymore.
666. 32:16Uh blockchain game dev asked, "Every
667. 32:19cycle has a black swan. Do you think
668. 32:21this is it?" Yeah, I would say so. If we
669. 32:24somehow have a worse
670. 32:27event than this
671. 32:29from now to the end of the year, man,
672. 32:30then it's just not our year.
673. 32:33This is the biggest hack in crypto
674. 32:35history. And luckily,
675. 32:38luckily,
676. 32:40it's with exchange that seemed to be
677. 32:42able to pay it,
678. 32:44right?
679. 32:45Um or withstand it, I should say, better
680. 32:47word for it. That they have the reserves
681. 32:49to actually cover it.
682. 32:51If this happened to some exchange that
683. 32:55that was not able to, this would have
684. 32:57been a lot worse, a lot lot worse.
685. 33:00Right? But it is Binance.
686. 33:03But for sure,
687. 33:06if you guys haven't picked up on what's
688. 33:08been happening,
689. 33:10hacks
690. 33:11are only going to get worse. I've been
691. 33:14covering that. It's the good and bad
692. 33:17about
693. 33:18AI, I guess.
694. 33:20Um
695. 33:22you know, these hackers are using AI and
696. 33:26you know, how I don't know how many
697. 33:27agents they're running at all times to
698. 33:29find vulnerabilities and to hack
699. 33:30systems.
700. 33:32Uh we're we're seeing changes get hacked
701. 33:34left and right. We're seeing wallets get
702. 33:36hacked left and right in crypto. And
703. 33:39there's going to be more targeting
704. 33:40crypto because crypto you can instantly,
705. 33:43if you get through, you can instantly
706. 33:45take
707. 33:47you know, the value out of it, right?
708. 33:50Um
709. 33:51but we also saw hacks with
710. 33:54traditional hacking with uh web two
711. 33:56companies like
712. 33:58like database companies and front end,
713. 34:00back end companies.
714. 34:02Um
715. 34:04ones that millions and millions of
716. 34:05people use. I mean, you're seeing them
717. 34:07left and right.
718. 34:09And this is only going to accelerate as
719. 34:10better models come out.
720. 34:13So,
721. 34:14all these companies, everyone in crypto,
722. 34:18you know,
723. 34:20hopefully they are on top of it or
724. 34:22trying to stay on top of it, utilizing
725. 34:24AI to counter these hacks or to make
726. 34:29their products better because it's going
727. 34:32to get worse.
728. 34:35It's going to get a lot worse.
729. 35:03>> When stocks become tokenized, will
730. 35:05hackers be able to steal them from
731. 35:06wallet? Yeah.
732. 35:08Yeah.
733. 35:09Tokenized stocks are just crypto.
734. 35:12So, if your wallet gets hacked or
735. 35:15exchange gets hacked,
736. 35:17they could definitely be stolen sold
737. 35:19off.
738. 35:19>> Right.
739. 35:53>> I got 1,600 people in here. I know it's
740. 35:55it's not for good reasons.
741. 35:58But, uh seems like the hack is over.
742. 36:026.3 million is the
743. 36:05million billion is the damage.
744. 36:09Caused by Lazarus.
745. 36:11And uh and they're still investigating
746. 36:13how it happened. And hopefully, they get
747. 36:15to the bottom of it.
748. 36:18And stop
749. 36:20and share it really to all the exchanges
750. 36:22to make sure that this doesn't happen.
751. 36:24We wouldn't want to see this happen to
752. 36:25another exchange like Coinbase or Kraken
753. 36:29or Gemini
754. 36:31or I don't know what else crypto.com or
755. 36:34Robinhood, you know, any of these other
756. 36:37exchanges or brokerages. We certainly
757. 36:39don't want to see them get hacked.
758. 36:42Binance, we could kind of just accept
759. 36:44because I think most people know they
760. 36:45could cover it no matter what but other
761. 36:48exchanges I'm not so sure they can.
762. 37:02How about Elon buying Binance? He
763. 37:05doesn't have enough cash for that.
764. 37:06Binance is
765. 37:08If you were to to value Binance
766. 37:11it would probably be a trillion dollars.
767. 37:14Like that's how big they are. Um
768. 37:19So
769. 37:21Yeah.
770. 37:23Anything positive today? Not really. I
771. 37:26updated Frontline more but I don't know
772. 37:28if anyone here really wants to
773. 37:31see that
774. 37:33But I have been updating Frontline and
775. 37:37and working on Clash World CWD and FPS
776. 37:41so
777. 37:42There is that but
778. 37:44uh
779. 37:45Yeah, I don't I don't know if there's
780. 37:47anything else positive.
781. 37:50Positive. Can you make a option of cell
782. 37:52phones work with real voice
783. 37:53communication? Probably not. No, I'm not
784. 37:56That's too sophisticated. I could do it
785. 37:59but I'm not going to.
786. 38:02You could just chat with people. I could
787. 38:04build in like Telegram and Discord
788. 38:07within the game so you could chat with
789. 38:09people.
790. 38:11Um
791. 38:11you know.
792. 38:13Maybe I can make it so that you get text
793. 38:15messages from the game.
794. 38:18If you want to enable that, you know,
795. 38:21stuff like that would be easy to do.
796. 38:29[snorts]
797. 39:02>> Uh the US.
798. 39:30Maybe Lazarus will come for Clash Pad. I
799. 39:33I doubt it. It wouldn't be worth their
800. 39:34time.
801. 39:36It really wouldn't.
802. 39:38Uh I think they're going after billions,
803. 39:41okay? Billions upon billions. There are
804. 39:43a lot bigger
805. 39:45fish to go after.
806. 39:51If you get arrested in Clash world, will
807. 39:53the police have body cameras? No, it's
808. 39:55not that sophisticated, okay? It's just
809. 39:57like playing GTA. If you get arrested,
810. 39:59you get killed, and then you start over.
811. 40:02That's it. Not going to be making so
812. 40:04that you go to jail or something.
813. 40:22How can this happen after all the
814. 40:24security, Spicy Tuna? I think you're
815. 40:26just wondering, how does a big company
816. 40:28like this still get hacked? Well, that's
817. 40:30the the billion-dollar question, right?
818. 40:33People are trying to figure it out if
819. 40:35this was a protocol level
820. 40:37vulnerability or
821. 40:40Binance made a mistake and left their
822. 40:43private keys on a laptop or something
823. 40:46else. Like, we just don't know. It may
824. 40:48never come out. Even if it comes Even if
825. 40:51they discover they may never
826. 40:53like actually publish it.
827. 40:56Because if it was just like a big goof
828. 40:57up, it would make them look extremely
829. 40:59bad. But if it is something that is
830. 41:04like something that's very urgent that
831. 41:06other exchanges need to patch, hopefully
832. 41:09they do
833. 41:11just, you know,
834. 41:12uh release and tell all the exchanges
835. 41:14ASAP. Like, "Hey, this is what happened.
836. 41:16You guys are probably going to be
837. 41:18affected, too.
838. 41:19Uh patch this now, right?"
839. 41:22I think they're going to do that. But if
840. 41:24it's something like really stupid, like
841. 41:26a developer's laptop got hacked and all
842. 41:29the private keys was taken from it, and
843. 41:32that's how they were able to do this,
844. 41:33like
845. 41:35I don't think they're going to release
846. 41:36that.
847. 42:03All right, guys.
848. 42:05That is it.
849. 42:07Unfortunately, it's just bad news today.
850. 42:10Bad news. Even Circle is selling off.
851. 42:11Circle's down 10%.
852. 42:14All the crypto stocks are down huge
853. 42:17today.
854. 42:19But this is what happened.
855. 42:22Hackers steal 6.3 billion from Binance,
856. 42:25the biggest crypto theft ever.
857. 42:28I would say it could be the biggest
858. 42:29theft ever, not just crypto. I can't
859. 42:32think of a theft
860. 42:34that is bigger than that. Other than if
861. 42:35you count like Madoff's like Ponzi, but
862. 42:38that's not That's not That's a different
863. 42:39kind of theft. Um but it's huge. Binance
864. 42:43said they'll be able to cover it. They
865. 42:44got enough reserves, so no worries
866. 42:46there. I think their withdrawal still
867. 42:47might be
868. 42:49closed at this point.
869. 42:51But yeah, this is what happened and
870. 42:53obviously this triggered a lot of
871. 42:55sell-offs,
872. 42:57uh liquidations, you know, panic, fud,
873. 43:01all this stuff, right? And Elon is
874. 43:04trolling, sort of, and CZ doesn't like
875. 43:06that. There are a lot of things going
876. 43:08on.
877. 43:09But try to stay positive.
878. 43:12This is no reason to leave crypto. We
879. 43:15have seen
880. 43:18situations like this before, bad hacks,
881. 43:21bad black swan events, banks that's
882. 43:24going belly up and stuff, and changes
883. 43:26that go under.
884. 43:28But we get through it every single time.
885. 43:31Bitcoin picks itself back up and makes a
886. 43:35new high. So, stay strong, my friends.
887. 43:38Have a good weekend. Go check out Clash
888. 43:41Bag, go check out Frontline, go Clash
889. 43:44check out Clash Picks, all in the
890. 43:46description. All right? Have a good one.
891. 43:49Take care.