The Philip DeFranco Show - PDS 2.25 “RELEASE THE FILES!” Trump’s Epstein Files Controversy & Whats Really Going On with DOGE?

Episode Date: February 25, 2025

Subscribe for New shows every Monday, Tuesday, Wednesday, & Thursday @ 6pm ET/3pm PST & watch more here: https://youtu.be/WQ3Rr-Sebuc?si=KKdo1sAPedu3WMRa&list=PLHcsGizlfLMWpSg7i0b9wnUyEZWI-25N3&index=...1  Use code “PHIL” for $20 OFF your first SeatGeek order & returning buyers use code “PDS” for $10 off AND your chance at weekly $500 prizes! https://seatgeek.onelink.me/RrnK/PHIL Get an exclusive NordVPN deal here https://nordvpn.com/phil It's risk-free with Nord's 30-day money-back guarantee!   Don't miss out on your https://BeautifulBastard.com Feb Feelings Drop! 7 New Tees & Hoodies   – ✩ TODAY’S STORIES ✩ – 00:00 - Pressure Mounts for FBI to Release Epstein Files 03:17 - Chaos Over Musk Email Request & DOGE Accounting Has Serious Errors 13:23 - Sponsored by SeatGeek 14:21 - Fyre Fest 2 Set for Mexico 18:57 - North Korean Hackers Get $1.4B in Biggest Crypto Heist Ever 22:11 - Sponsored by NordVPN 23:21 - Judge Upholds White House Ban on AP but Urges Government to Reconsider 27:23 - Comment Commentary ——————————   Produced by: Cory Ray Edited by: James Girardier, Maxwell Enright, Julie Goldberg, Christian Meeks, Matthew Henry Art Department: William Crespo Writing/Research: Philip DeFranco, Brian Espinoza, Lili Stenn, Maddie Crichton, Chris Tolve, Star Pralle, Jared Paolino  ———————————— For more Philip DeFranco: Apple Podcasts: https://podcasts.apple.com/us/podcast/the-philip-defranco-show/id1278424954 Spotify: https://open.spotify.com/show/6ESemquRbz6f8XLVywdZ2V Twitter:   https://x.com/PhillyD Instagram:   https://instagram.com/PhillyDeFranco Newsletter: https://www.dailydip.co TikTok:   https://www.tiktok.com/@philipdefranco?lang=en ———————————— #DeFranco #JonStewart #JeffreyEpstein ———————————— Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:00 What's better than a well-marbled ribeye sizzling on the barbecue? A well-marbled ribeye sizzling on the barbecue that was carefully selected by an Instacart shopper and delivered to your door. A well-marbled ribeye you ordered without even leaving the kiddie pool. Whatever groceries your summer calls for, Instacart has you covered. Download the Instacart app and enjoy $0 delivery fees on your first three orders. Service fees, exclusions, and terms apply. Instacart. Grocer $0 delivery fees on your first three orders. Service fees, exclusions, and terms apply. Instacart, groceries that over-deliver. Amid growing calls to release the Epstein files, questions are now being raised as to why they haven't actually been released yet
Starting point is 00:00:35 since Trump got his attorney general in place. And she said five days ago that she had the Epstein client list on her desk. Fire Festival 2 is a go if you're willing to risk your money and or dignity. We've got North Korea's wild $1 a half billion dollar crypto heist. And we need to talk about what many have called mistakes, lies, and or misleading claims being said about Doge today. We're talking about all that and much more on today's brand new Philip DeFranco show. You daily dive into the news, how it's being covered, and how people are reacting to it, starting with this. Where are the Jeffrey Epstein files? That is a question a lot of people are asking right now for a number of reasons, starting with this. Where are the Jeffrey Epstein files? That is a question a lot of people are asking right now
Starting point is 00:01:05 for a number of reasons, starting with a call from Republican Senator Marsha Blackburn. With Blackburn writing a letter to FBI Director Kash Patel requesting that in line with his stated commitment to transparency, he release complete flight logs from Epstein's private jet and helicopter, Ghislaine Maxwell's little black book, as well as any other records she had that contained
Starting point is 00:01:22 the names of her or Epstein's associates, video surveillance footage from Epstein's Palm Beach residence, and any other documents or records related to these matters. With Blackburn then also writing, Over the course of many years, Jeffrey Epstein built a heinous global sex trafficking network that caused irreparable harm to countless women. But then adding, since Mr. Epstein's death in 2019, there is still much about this tragic case that is not known. And saying, This critical information identifying every individual who could have participated in Jeffrey Epstein's abhorrent conduct is long overdue.
Starting point is 00:01:49 The survivors of Mr. Epstein's horrific crimes want transparency and accountability, and they and the American people deserve nothing less. With Blackburn also condemning the previous FBI director, Christopher Wray, claiming he did not release information when asked. And Blackburn here also cc'd Attorney General Pam Bondi on that letter, which is notable because just last week, Bondi said during a Fox News appearance that Epstein's client list was sitting on her desk to review. So now you've some asking, okay, so where is it, right? When does the public get it? And why is there a holdup? With those questions notably not just coming from
Starting point is 00:02:16 people on the internet, but coming from a lot of conservative politicians asking not just for the Epstein files, but information on other high profile cases. With, for example, Florida Rep Anna Paulina Luna writing that there have been multiple requests to the DOJ about the Epstein files, but information on other high profile cases. With, for example, Florida Rep. Anna Paulina Luna writing that there have been multiple requests to the DOJ about the Epstein files, but saying the DOJ has not responded, reaching out on X because we can't seem to get a response from the AG. AG Pambondi, what is the status of the documents? These documents were ordered to be declassified. And this is there's also pressure coming from Democrats as well, with the likes of Representative Ilhan Omar tweeting this morning, the AG still not releasing the Epstein files is weird and raises the question of who she might be protecting,
Starting point is 00:02:49 with her implication there seeming to be President Trump. And you know that because there have been tons of reporting on Trump and Epstein's previous friendship, leading to tons of speculation about what he did or did not know. With that, of course, just being one of the many Epstein-related theories and rumors, but also this morning,
Starting point is 00:03:03 you had tons of people resurfacing reports of their ties, which you may have noticed if you hopped into the dumpster fire this morning, Epstein was the number one trending topic on X today amid these demands for the files to be released. Though also seemingly another reason why it was trending was because commentator, Bennie Johnson, posted a claim from a source who said that the FBI
Starting point is 00:03:18 is destroying files, including potentially ones related to Epstein. And while that clip has gone very viral, as of recording, no major outlet has corroborated it or even reported on it. So even though it's getting a ton of attention, I will say it is unverified. But notably, that hasn't stopped politicians
Starting point is 00:03:32 and Elon Musk from sharing posts about it. With this, as Musk has also tweeted in support of Marsha Blackburn's efforts and letter to the FBI. With, of course, all of this then adding to the online pressure mounting for Bonzi and other officials to follow through and release the files.
Starting point is 00:03:44 But for now, we're gonna have to wait to see how all this plays out on several different fronts. But then next up, it's your daily dose of doge. Starting with the fact that things have somehow gotten even messier and more chaotic with Musk's whole, what did you do last week email to federal employees? We talked about it on the show yesterday. Musk made a post on Saturday saying
Starting point is 00:04:00 that all 2.3 million federal workers would be sent an email requesting that they detail what they did last week. With Musk saying failure to respond will be taken as resignation, with then the HR arm of the Office of Personnel Management sending an email asking employees to write five bullet points
Starting point is 00:04:12 about what they accomplished last week, though notably it said absolutely nothing about Musk's threat regarding failure to respond, with it then just being utter chaos, right? Many of the agencies led by newly installed Trump appointees explicitly told their charges to ignore the email or that the response was voluntary. But then you also had other agencies telling their workers
Starting point is 00:04:27 that they had to respond still or strongly encouraged them to do so. Then Trump in a press conference yesterday afternoon falsely claiming that the only agencies that weren't complying were the ones that dealt with confidential matters of security like the FBI. With him then adding to the confusion by contradicting what so many of his appointees
Starting point is 00:04:41 had told their employees and claimed that the workers who didn't respond to the email would be sort of semi-fired or you're fired. But you're just gonna ask as an employer, what the fuck is semi-fired? But with it seemingly impossible to get any more confusing, it then somehow did. Because the Washington Post reported yesterday afternoon that OPM, the same agency that sent the first email,
Starting point is 00:05:00 told HR leaders of other federal agencies that their employees could ignore the email and they wouldn't lose their jobs. With that reportedly coming from three different sources who were familiar with the matter. And specifically, one of those sources told the outlet that this latest directive was given in a call midday yesterday.
Starting point is 00:05:14 With the second person briefed on the call adding that OPM wasn't actually sure what to do with the emails of employees who already responded, but claiming the agency had no plans to analyze them. But key thing here, the Post reported that the OPM call actually took place shortly before Trump made his confusing comments about workers getting sort of semi-fired.
Starting point is 00:05:29 And later in the day, after our Monday show was up, we saw Musk doubling down on his threat again, writing on X, subject to the discretion of the president, they will be given another chance. Failure to respond a second time will result in termination. But then, later that same evening, the OPM published a memo providing guidance on the what do you do last week email.
Starting point is 00:05:46 There the agency said that basically people should respond, but that decision is ultimately up to each agency. Writing, agency heads may exclude personnel from this expectation at their discretion and should inform OPM of the categories of the employees excluded and reasons for exclusion. Adding, it is agency leadership's decision as to what actions are taken against those who don't respond.
Starting point is 00:06:04 So based on the language there, it seems like people will not get fired for not replying unless they work for an agency that decides to require their response. Again, as we talked about yesterday, there are a lot of legal implications that could complicate that. Regardless, what we're seeing here is a situation
Starting point is 00:06:17 where you have the OPM, which should be the bottom line, saying one thing to agency leaders while Trump and Musk are saying something totally different to the public. So you have people wondering, you know, are these two just trying to spin this situation to make it look like they're firing more people than they really are, or is this a real threat?
Starting point is 00:06:31 And that, in part, because we've seen time and time again how much influence Musk has over Trump and how he actually administers policy. And so that is essentially the update to the email chaos, but then on the note of Musk potentially trying to spin all of this to make it seem like he's doing more than he actually is, we should also talk about the fact that there have been some massive errors with Doge's only public accounting of its work because over the last
Starting point is 00:06:50 week or so numerous outlets have reported a number of serious flaws with Doge's so-called wall of receipts Which is a new tracker of all the savings the agency is claiming that it's made through staff reductions lease cancellations and terminated contracts When Doge first made the tracker live, the website claimed that the agency had saved the federal government $55 billion. While there's been a lot of media coverage unpacking those claims, one of the most thorough and well-explained pieces came from the New York Times.
Starting point is 00:07:13 With the seeing the Times reviewing hundreds of federal contracts and interviewing both experts and the recipients of canceled contracts to reveal that the math behind Doge's numbers, quote, is marred with accounting errors, incorrect assumptions, outdated data and other mistakes. Now with this, one thing that I do wanna note here
Starting point is 00:07:27 is that since the Times published their story, Doge has since updated the tracker and is now claiming that it has saved the government $65 billion. But it appears that the Times' analysis still stands because it is based on systemic issues with Doge's accounting that haven't changed and have also been backed up
Starting point is 00:07:41 by numerous other reporters and experts. I wanted to mention that because one, there has been an update and two, because their analysis is based on the initial $55 billion figure, which is what we're gonna be drawing for for the purposes of this story. So with that said, diving into it, right off the bat,
Starting point is 00:07:53 arguably one of the biggest overarching issues here is that despite repeated promises of transparency, there's actually no way to account for the vast majority of the $55 billion that Doge claims to have saved. Even Doge itself explicitly says that the 1,125 contracts listed on Wall of Receipts at the time of this analysis
Starting point is 00:08:09 accounted for just 20% of their overall spending cuts, though the Times said that it could not reconcile those numbers. So you have the questions, you know, what's the other 80%? What is the bulk of the money they claim to have gotten? The simple answer is we kind of have no fucking clue. Doge claims that the remaining dollar amounts come from various efforts like fraud deletion, asset sales,
Starting point is 00:08:26 workforce reductions, programmatic changes, and more. But it then also provides zero data or specific estimates on those alleged savings. So you have the time saying it was not possible to independently verify that number or other totals on the site with the evidence provided. But beyond that, it appears that there are numerous fundamental flaws with the scant 20%
Starting point is 00:08:43 that Doge has actually accounted for. The limited dollar values Doge has actually accounted for. The limited dollar values Doge's posts for each contract come from data and a central tracking system for government contracts. But they are, at the time, spotting some issues with how Doge was doing its math. Something that they actually illustrated really well in one example where Doge says that it saved 5.4 million dollars by canceling a contract for DEI services for the Department of Homeland Security. Right, and to get that figure, Doge took the total potential value of the contract, around $7.5 million, and subtracted the $2.1 million that appears to have already been spent. Which, okay, seems simple enough,
Starting point is 00:09:11 but this isn't a word question for first graders. You know, we're talking about the incredibly complex system for allocating federal contracts. Literally nothing is simple. And you have experts saying that estimate is likely far too high for a number of reasons. Saying, first of all, data in the federal contracting system could be several months out of date.
Starting point is 00:09:25 So this figure could be an undercount of what was already spent. It also doesn't account for the added costs of terminating a contract that the government still has to pay out, like winding down staff, closing offices, ending leases and offloading equipment. One expert even saying that leaving out those figures,
Starting point is 00:09:38 it makes Doge's estimates a meaningless metric. And all of this as CBS news also found another type of error regarding Doge's accounting. Reportedly, the agency triple counted the $655 million maximum value of one contract for USAID with numerous subcontracts. And while Doge eventually removed two of the duplicate listings, the Times found that it still overestimated the savings on the remaining line item by at least $270 million. But that also was just one of several overestimates. In another example, Doge claimed that it saved $232 million on an IT contract for the Social Security Administration. But there, you had the intercept finding that the group actually only canceled a tiny part of the
Starting point is 00:10:12 contract that let users mark their gender as X. So the actual savings was just over half a million dollars. And in addition to stuff like that, there have also been much more obvious errors. Like with when the Wall of Receipts tracker was first rolled out, an $8 million contract for IT services to ICE, it had been mistakenly entered at the value of $8 billion, which, you know, would have accounted for almost half of the combined value of all listed contract cuts. And while Doge did eventually fix the problem, it also made some very misleading claims about the situation on X. So they're seeing the agency saying that the discrepancy was a clerical error that their team was aware of and asserting that Doge has always used the correct $8 million in its calculations. But then that post on Musk's own platform, it got community
Starting point is 00:10:48 noted with users pointing out that we literally have receipts that show Doge's tracker, including the wrong number, and then updating it after numerous reports, as well as the fact that Doge's claim savings of $55 billion haven't changed despite the fact that multiple line items have been revised after errors were pointed out. And it's not like this is the only reported thing or time that Doge has made misleading posts about its alleged savings on X. Like last week, for example, they were tweeting a Treasury Department post saying that the IRS had rescinded a previously planned $1.9 billion contract and done so in connection
Starting point is 00:11:15 to the group's work, with Doge including a screenshot of a $1.9 billion contract with an unnamed vendor that had been marked as terminated. But then, when the Times contacted the vendor in question, they said that their contract had actually been canceled back in the fall, meaning that Doge was literally taking credit for something that the Biden administration had done. And it doesn't appear that's the only time it's happened. Another example, an environmental scientist in Michigan
Starting point is 00:11:35 also told the Times that Doge had included a federal contract that he had in its list of savings, despite the fact that the contract had expired in December. Now notably, with everything, these are just some of the findings out there by the Times and other outlets. But the last thing that I wanna hit on here is another misleading thing that Doge does
Starting point is 00:11:50 with its wall of receipts tracker. Because according to NPR, more than a third of the listed contracts posted online would actually not save any money if canceled. You know, that's not some huge secret. Doge itself literally lists those as saving the government $0. But it appears that they include them
Starting point is 00:12:04 so they can say that they canceled a higher amount of contracts, even if there's no real impact. And so ultimately you just have this confusing, chaotic, just messy, misleading situation. There's just a million things happening. And all of it is seemingly so ridiculous, they got my man, Jon Stewart, bleeding at his news desk.
Starting point is 00:12:20 Because on the Daily Show last night, you had Jon Stewart adding to the criticism and absolutely ripping into Doge. With him first arguing that the agency would be better served by going after cuts like $3 billion in federal subsidies to oil and gas companies that already turn billions in profit. As well as $1.3 billion from the carried interest loophole that hedge funds benefit from, right, that allows investment managers to slash their taxable income, and also $2 trillion to defense contractors for the F-35 fighter jet that, in his words, blows, with that being a critique of the jet's numerous setbacks, high costs, and safety concerns. But see, this is where the real money is. The real money, the money our free market-ish system uses to prop up corporate profit at the expense of the taxpayer. Pharmaceutical
Starting point is 00:13:01 companies get everything from our government. Tax breaks, research grants, patent extensions, worth billions of dollars. And what do we the people get for it? The highest drug prices in the Western hemisphere. And then my man, Jon Stewart, smashed his mug on his desk and accidentally sliced his hand open. With it still bleeding off camera, he concluded that the idea of Doge, that's not the problem,
Starting point is 00:13:23 but arguing that it's how it's going about it, saying. I want Doge to work. I want better efficiencies. I want to get rid of the alphabet agencies that don't do enough, make the Pentagon pass an audit. But we are Doge-ing in the wrong place if we want to really change the system. But that is ultimately where this Doge mess is going to end today, because there's gonna be another mess tomorrow and the day after if the trend continues. But hopefully at the very least, it makes a little more sense since there's just so much misleading bullshit
Starting point is 00:13:53 out there right now. And then we'll get to more news in just a moment. But first, you know, it's been really cool working with SeatGeek on the $500 weekly giveaway and seeing how you're using your winnings. From concerts and Broadway shows to sporting events, you beautiful bastards have been crushing it. And all of this is, keep in mind, the weekend, Beyonce tickets are available. There's a lot out there. So if you haven't entered yet, just do it.
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Starting point is 00:14:32 We're talking about possibly getting $500 in credit towards any of SeatGeek's 70,000 events. And again, if you're new to SeatGeek, just scan the QR code and add code Phil to get $20 off your first purchase. And again, for SeatGeek veterans, right? It's not your first time using SeatGeek. You can also add code PDS, which gets you $10 off any purchase purchase. And again, for SeatGeek veterans, right? It's not your first time using SeatGeek. You can also add code PDS,
Starting point is 00:14:46 which gets you $10 off any purchase, and you'll get entered for your chance at the $500 SeatGeek credit, no purchase necessary. But then next up in very different news, if you're looking for what some people have referred to as the absolute dumbest way to spend your money this summer, look no further than Fyre Festival 2. And yes, really, it's the reboot of that fire festival,
Starting point is 00:15:05 the one that fell apart spectacularly in 2017. Do you remember how it was marketed as a once in a lifetime ultra luxurious getaway with beautiful villas and a lineup of musical talent and models including Blink 182, Migos, Major Lazer, Kendall Jenner, and Hailey Bieber? Then when the guests who paid thousands or even tens of thousands of dollars for their tickets
Starting point is 00:15:23 arrived on the island, they found none of that. Instead, you had reports saying they were met with FEMA pop-up tents, wet mattresses, cheese sandwiches, no running water, no internet, no concerts. With that humiliating calamity earning itself two documentaries, a Broadway musical as well, as several lawsuits and a six-year prison sentence for its fraudulent organizer, Billy McFarland.
Starting point is 00:15:41 But as far as McFarland, he told the Washington Post that while he was behind bars, he wrote a 50 page plan to parlay all that interest and demand and fire into new projects. So now we are getting Fyre Festival 2, which he insists is definitely totally real. With him saying, I'm sure many people think I'm crazy for doing this again,
Starting point is 00:15:58 but I feel I'd be crazy not to do it again. The adventure seekers who trust the vision and take the leap will help make history. And so reportedly this event will run from May 30th to June 20th on Isla Mujeres, which is an island in the Mexican Caribbean off the coast of Cancun. With its website promising an electrifying celebration
Starting point is 00:16:13 of music, arts, cuisine, comedy, fashion, gaming, sports, and treasure hunting. And with all this, if you are skeptical, you have McFarland reassuring us that he's not the one handling the details this time around. Instead, he's reportedly got a major Mexican festival producer as well, as partners for hotels, travel, and ticketing,
Starting point is 00:16:28 helping him make this happen. And importantly, you had NBC saying those partners actually confirmed that they are in fact partnering with them. So after a limited release of tickets back in 2023, the main release of 2000 tickets went on sale yesterday. And notably with that, there are four different passes that you can buy,
Starting point is 00:16:41 depending on how credulous you're feeling. First, there's the $1,400 Ignite General Pass, which actually grows to $1,600 after service and processing fees, plus travel and accommodations that you have to purchase yourself. Then there's the $5,000 Fuego VIP Pass, the $25,000 Phoenix Artist Pass, and the $1.1 million Prometheus Pass.
Starting point is 00:17:00 With that last one, promising a number of special perks, including onstage access to the water stage, fight team access of the fight pit, a curated itinerary of fire experiences, 24 seven private chauffeur service, dedicated onsite concierge, and access to the Prometheus Marina. You can also bring eight guests with you
Starting point is 00:17:16 and get flown from Miami to Cancun by private jet and then to the festival by helicopter. At which point, if everything is real and is happening, a dedicated chauffeur will take you to wherever you're staying, which depending on your choice, could either be a four stateroom yacht or a four bedroom villa.
Starting point is 00:17:29 Or hear me out, alternatively, with that money you could buy 28,947, don't be stupid, stupid shirts from beautifulbastard.com. And with those, I can 100% guarantee, none of those will actually be cheese sandwiches. But hey, with that, according to McFarland, at least one person has already bought the Prometheus package. But you know, it kind of just feels like a leap in the dark because as of right now, no lineup of talent has even been announced. But it's there,
Starting point is 00:17:51 seeing McFarland telling the Today Show that he's not in charge of booking, but then also having this interesting exchange with a reporter. So we're going to have artists across electronic, hip hop, pop, and rock. However, it's not just music. We might have a professional skateboarder do a demonstration. You might have an MMA champion teach you techniques in the morning. You say we might have. Are any of these for sure haves? Are they booked? So I think what makes FIRE so cool is that we are selling the experience of FIRE. I want to be one of the first festivals that can sell out with no artists. Is it a risk to buy a ticket to FIRE Festival 2? I think it's always a risk. You're taking a risk because I made a lot of bad decisions and messed up the first festival. Until it's experienced, there is a risk component to it. But also a thing that's popped up with this
Starting point is 00:18:32 story is you have some people saying that, hey, even if he somehow pulls this off, it's still kind of outrageous because the original festival's investors never got their $26 million back. Though there, you do have McFarlane saying that 10% of the profits from Fire 2 will go towards that, including a minimum of $500,000. And this, as he also promised on Instagram last year, that 1% of all the ticket sales will go directly to the family and friends of incarcerated people. I will say that this latest announcement appears
Starting point is 00:18:56 to make no mention of that pledge. But whatever the case may be, you have McFarlane seeming to have big long-term plans here with The Guardian quoting him as saying, "'Since 2016, Fire has been the most talked about "'music festival in the world.'" Obviously, a lot of that has been negative, but I think that most people,
Starting point is 00:19:10 once they kind of get under the hood and study the plans and see the team behind Fyre 2, they see the upside. And if it's done well, I think Fyre has a chance to be this annual festival that really takes over the festival industry. So I gotta ask, what do y'all think? Another scam? Is it real this time?
Starting point is 00:19:24 What is gonna happen? If we were gonna place bets, what do y'all think? Another scam? Is it real this time? What is gonna happen? If we were gonna place bets, what is gonna happen? But then next up, we need to talk about the fact that North Korea pulled off the single biggest crypto heist ever, worth $1.5 billion. Or with a seeing the exchange Bytebit disclosing that 400,000 Ethereum and related coins were stolen back on Friday.
Starting point is 00:19:42 You've got experts in the field saying that the way that the theft happened makes it pretty clear that this was done by the North Korean Lazarus Group. For example, they're known to quickly exchange stolen tokens for Bitcoin or Ether. And this is because other coins have ways to kind of freeze wallets that have stolen tokens, but Bitcoin and Ether don't.
Starting point is 00:19:56 And then on top of that, they use decentralized exchanges as another way to hedge against the possibility that their accounts would be frozen. With then also researchers from the blockchain analysis group Elliptic, also pointing out that there were a lot of efforts to layer the transactions, which is just a way to try and confuse where the funds are going. But due to the nature of blockchain technology, technically, it's possible to track. It's just very time consuming, which is probably why Bybit has now declared war on Lazarus and is crowdsourcing
Starting point is 00:20:19 efforts to track all of their 6,338 known wallets to try and freeze as much as they can. But you know, all of this, as many in the crypto space see this attack as possibly a defining moment in the industry because of how it bypassed the gold standard of safety. Right, and so this is a little inside baseball, but you know, it's super important for the story and I'll try to keep it simple. In crypto, people keep their coins in wallets.
Starting point is 00:20:39 And hot wallets are generally accessible from the internet with encryption and make transferring coins much easier. The drawback with that though, is that being on the web, it's a weak security point. And so then you also have cold wallets, which are not connected to the internet with encryption and make transferring coins much easier. The drawback with that though, is that being on the web, it's a weak security point. So then you also have cold wallets, which are not connected to the internet and they need encryption as well, theoretically making them extremely difficult to access
Starting point is 00:20:53 outside of physically being there. And Bybit reportedly only had enough coins on its exchange hot wallets to do day-to-day transactions. And the rest were kept in multi-sig cold wallets. So imagine a cold wallet, but it now needs multiple people to give their encryption keys to get access. Yet, somehow, these hackers were able to access these extremely secure cold wallets and move the money around. Now, currently, it is a bit unclear exactly how they managed to do
Starting point is 00:21:13 this, but the leading theory is that the cold wallets were, quote, manipulated by a sophisticated attack that altered the smart contract logic and masked the signing interface, enabling the attacker to gain control of the ETH cold wallet. Or in more layman's speak, the hackers managed to trick systems within Bybit to get access to those wallets during a routine transfer of coins. Also, one of the leading theories is that there was possibly a lot
Starting point is 00:21:32 of social engineering going on. Right, in Lazarus Group, they're known for spending a ton of time building up unique personas to try and get the trust of key figures in industry. And by doing this, they could possibly trick targets into giving them access through malware to things like the UI needed to get into the cold wallet.
Starting point is 00:21:45 So regardless of how this was done, this attack is causing people and companies across crypto to reevaluate how they do their security, which I will say, well, you probably don't need the levels of security they do. At the same time, right, this is probably a good reminder to change your passwords and don't click on random links and emails.
Starting point is 00:21:59 Because you know, well, you probably don't have $1.5 billion to lose, hackers won't mind taking far less from you. But with all that said, as far as Bybit and a small bit of at least, I guess we could call it good news. Bybit is claiming that even if they can't recover the money, they're solvent and everyone's coins
Starting point is 00:22:13 are still back one-to-one. With CNBC reporting that it replenished its reserves through a mix of emergency loans and large deposits. With them also reporting that a new proof of reserves audit conducted by cybersecurity firm Hacken confirmed that Bybit had successfully restored its reserves. Which if true is big and important, right? Because this wouldn't be the first time a crypto exchange has made this claim only to then go under after everyone started pulling their coins. But with all that said, especially if you're in the crypto space,
Starting point is 00:22:34 I'd love to know your thoughts in those comments down below, along with, you know, your wallet address and maybe even your key. Also, no, not really. That was a joke. Stop it. And then we'll get to more news in just a moment. But first, you know, governments are straight up blocking websites in certain regions, making it nearly impossible to get accurate news. And I like to think that we all care about accessing a free internet safely, right? I mean, not just for ourselves, but for our families too. And the way that I see it these days is that you need a VPN, period, for just a number of reasons. And I use NordVPN, who's also our fantastic sponsor of the show, to keep my digital life secure. And Linz and the kids love to access streaming content from all around the world. But also, again, more and more, I've become increasingly grateful to Nord, knowing that it's my best shot
Starting point is 00:23:13 at maintaining access to information. With NordVPN enabled on your devices, your data is encrypted and flows between the device and Nord's secure servers. So whether it's a cyber criminal intercepting your data or a state actor attempting to block you, Nord keeps you protected. Whether I'm at home, a coffee shop or traveling, I love NordVPN for its ability to keep me anonymous online. They mask your IP address, keeping your browsing private. With thousands of servers worldwide, you can access anything you need, stream your favorite shows
Starting point is 00:23:36 and enjoy fast, secure P2P sharing. So why haven't you gotten NordVPN yet? Especially because right now you can get a huge discount on a two-year plan, plus an additional four months free at nordvpn.com slash phil. That's nordvpn.com slash phil It won't take long to tell you Neutral's ingredients. Vodka, soda, natural flavors. So,
Starting point is 00:24:07 what should we talk about? No sugar added? Neutral. Refreshingly simple. Then, next up, we should talk about a judge just shutting down AP's attempt to get back into the White House Because if you don't remember, on his first day in office, Trump signed an executive order Ordering the U.S. Interior Department to change the name of the Gulf of Mexico to the Gulf of America
Starting point is 00:24:34 But then, the Associated Press, deciding that they were going to keep using the original name But acknowledged that Trump had changed it With them saying that their AP stylebook is used internationally And that this call was to ensure clarity with those international audiences. But Team Trump were not fans of that call and so they barred AP reporters from attending presidential events, which then grew to include not just meetings
Starting point is 00:24:52 in the Oval Office, but also other areas of the White House as well as Air Force One. With Trump even outright dismissing the entire AP organization as radical left lunatics and saying, we're going to keep them out until such a time as they agree that it's the Gulf of America.
Starting point is 00:25:04 And so we saw the Associated Press taking the problem to the courts on Friday, with the goal being to get a restraining order to prevent the White House from banning their reporters. With the AP arguing that this ban was a violation of the First and Fifth Amendments, and saying that the White House's retaliation here is a threat to freedom.
Starting point is 00:25:17 And you had the attorney for the AP during the hearing saying, get the lawsuit, it boils down to Trump and his staff punishing one outlet over another by keeping them out of these events. Events that they say they've been included in for over a century and cover on behalf of thousands of newsrooms and broadcasters around the world. With them adding that without intervention from the court, they will face irreparable harm, which would then be felt by their readers and member organizations. However, on the other side, you have the Trump administration's attorney arguing that the AP had not suffered that irreparable harm because they are still able to report on events that they weren't allowed to attend.
Starting point is 00:25:45 And that because they have access to the pool notes that are given to all members of the White House Correspondents Association. With the men going on to argue that just because the AP historically had special access, that does not mean, quote, "'Such access is constitutionally compelled in perpetuity.'" In saying that it's Trump's prerogative
Starting point is 00:25:59 to choose which outlets are allowed in special areas like the Oval Office or Air Force One. However, you had the AP pushing back there saying, "'The case isn't a matter of whether Trump has to speak to them, but about his decision to single them out. Their attorney saying, we're not arguing that the president of the United States
Starting point is 00:26:12 has to answer the Associated Press's questions. Saying the issue is that once he lets the press pull in, he can't say, I don't like you, you're fake news, get out. With all that said, at least at this point, a judge has cited against AP. The seeing US District Judge Trevor McFadden deciding against issuing the restraining order. With him saying that the AP's problem is quote,
Starting point is 00:26:28 "'Not the type of dire situation "'that would require intervention against the White House.'" And adding, he is quote, "'Not inclined to act precipitously "'on the executive office of the president.'" But he also then scheduled another hearing on the matter for March 20th for the AP to further argue its case. And this is he also offered a warning to Team Trump saying
Starting point is 00:26:44 that legal precedent from other cases where the White House banned reporters didn't look good for them. He even reportedly seemed sympathetic to the arguments against them, including the claim that the White House is apparently trying to coerce or punish the AP over a language choice,
Starting point is 00:26:56 something that he said amounted to viewpoint discrimination. But also, right, that warning, it did not put a damper on the White House celebration with the press office saying in a statement, as we have said from the beginning, asking the president of the United States questions in the Oval Office and onboard Air Force One is a privilege granted to journalists, not a legal right.
Starting point is 00:27:12 The men throwing up a map with the name Gulf of America on it and a big red victory stamp on the monitors in the briefing room. Also very notably here, you had the interim US attorney for DC, Ed Martin, saying on X before the ruling, as president Trump's lawyers, we are proud to fight to protect his leadership "'as our president, and we are vigilant
Starting point is 00:27:28 "'in standing against entities like the AP "'that refuse to put America first.'" Which is then something we saw the New York Times call an extraordinary statement that is suggesting that Justice Department attorneys are the president's lawyers rather than the representatives of the government. And Martin definitely added fuel to this fire
Starting point is 00:27:42 because we saw Democratic members of Congress quickly hitting back against him. With the seeing, for example, Virginia representative Don Beyer responding on X, Washingtonians deserve federal law enforcement who will protect their rights without violating the constitution and focus on fighting crime
Starting point is 00:27:55 rather than trying to censor the free press and political opponents. Basic understanding of punctuation would be nice also. With that punctuation bit likely being a dig at the misplaced apostrophe in Martin's statement. You then also had Senator Chris Murphy from Connecticut responding to Martin and saying, "'This is insane.
Starting point is 00:28:08 "'If you wonder why some of us think "'the rule of law is about to fall, it's this. "'The US Attorney for DC is not President Trump's lawyer "'and its job is not to protect his leadership "'nor prosecute people who refuse to put America first.'" But for now, regarding the heart of this story, we're gonna have to wait to see what happens at that hearing in March.
Starting point is 00:28:25 But then finally today, let's talk about yesterday and some common commentary brought to you by beautifulbastard.com, where last night we just dropped all this comfy goodness for you. With our villain and don't be stupid, stupid tees and hoodies selling the best. And of course all that's available in addition due to this year's best sellers so far.
Starting point is 00:28:40 With it all just being the best and most comfortable way to wear your feelings, again, all at beautifulbastard.com. But like I said, let's talk about yesterday. Because in those comments, we largely saw a split. Comments and conversation around the psychiatric hospital story, and then, of course, Trump-Elon Musk. With us seeing many agreeing with Smokey, who said, For-profit psychiatric hospital is a terrifying combination of words. With some of y'all replying,
Starting point is 00:28:59 My jaw dropped hearing that. I am horrified to know that such a thing exists. Though others joking, Why? The for-profit prison system is flawless. With some then going further replying, I have to agree with Thomas Azaz for the most part. Saying involuntary commitment needs to be largely outlawed. Arguing there are institutions of abuse that largely do not help those forcibly admitted to them. And then saying even if someone is suicidal, involuntary mental health commitment will often make it worse. Being suicidal or mentally ill does not mean you lose the right to consent.
Starting point is 00:29:24 Which I will say, I know we covered a lot of new news today, and of course, I'd love to know your comments there, but I'd really love to know your thoughts regarding that comment. Or do you think that the system just needs reforms, tweaks, or do you think, you know, get rid of it? But then, in addition to that, there were a lot of conversations and a lot of comments about the Trump-Elon Musk reply or resign email scandal. We were seeing things there, like Power Gem writing, federal employee here, my agency told us to go ahead and respond to the email Monday morning. So I wrote up my five points,
Starting point is 00:29:48 got them approved by my supervisor and sent them to OPM. And then adding a few hours later, my agency tell us that it is voluntary. I'd be upset at the confusion if it wasn't so blatantly purposeful. Now I potentially have to worry about an AI deciding if my job is mission critical or not. But then several people responding to that saying,
Starting point is 00:30:02 you know, I responded to the email as well, saying things like I highly doubt any kind of real review will be done and the union would be able to file grievances if they decide to fire people or something like this. We also had 8-Bit Brutch, I'm probably mispronouncing that, saying, 17-year employee of the Department of Veterans Affairs here. OPM sent another email today saying that replying was completely voluntary, saying, this is nuts. These attacks are meant to wear us down and get us to either kiss the ring slash feed or quit. But adding, despite my mental health issues, I'm not quitting.
Starting point is 00:30:26 As long as the VA exists and I'm still breathing, I'll keep serving vets until I'm fired, retire or die. You know, something that I wanna add there is, while right now the numbers are kind of unclear, I'm very interested to see how many US veterans end up getting fired from these federal purges. Because they are most at risk for being disproportionately impacted by all the cuts.
Starting point is 00:30:43 And that's because I think like 28% of the federal workforce are vets. And while we're seeing things like the Interior Department saying, hey, from these mass layoffs, the veterans are exempt. One, consistency nor clarity have been words that you would associate with what we've been seeing or it'd be more chaos.
Starting point is 00:30:58 And two, as all of this is playing out, we're seeing things like Politico reporting that a number of Republican lawmakers are privately begging the White House to rehire some of the 1000 employees dismissed from the Department of Veterans Affairs. So then going back to yesterday, a bunch of you all were also joking that people should reply that everything that
Starting point is 00:31:11 they did on their five bullet points was classified. Though I would argue it'd probably be better to do nothing rather than try to poke the bear there. If not just because it would be easier to hire among those larger numbers of the unknown. But then the final comment that I want to hit on and what I want to say here, I almost wish that I could open up the show with this statement and it wouldn't kill watch time.
Starting point is 00:31:29 Because we had Jess saying, every day I look at the news and think I'm tired and the news shouts back, that's too damn bad. And what I'll say to that is if you need to take breaks, do it. It is a lot, there is just so fucking much happening right now that you cannot control. And I understand how like just demoralizing that can be.
Starting point is 00:31:44 But also I do believe that there is a way that you can consume the news in a way that you cannot control. And I understand how like just demoralizing that can be. But also I do believe that there is a way that you can consume the news in a way that is not overwhelming. I think that's really the kind of the point of the show that I'm trying to create here. All the other stuff I do on social media, right? I'm posting reels about the news, TikTok, shorts, all of that, all of that is in hopes of bringing someone
Starting point is 00:31:59 to the daily dump of this show. Or with the hope being that this can completely or very largely take over your news diet. Everything, people, apps, whatever, it is designed right now to just steal your fucking time. I don't talk like I'm on meth for no reason on this show. Your time is valuable and I try to treat it as such. And so you should also treat it as such.
Starting point is 00:32:17 But that, you beautiful bastards, is where your Tuesday evening, Wednesday morning dive into the news is gonna end with your good old buddy, Phil. Of course, remember, I got a brand new show for you every Monday, Tuesday, Wednesday, and Thursday at 6pm Eastern, 3pm Pacific. And you can also follow me on these socials. I post a bunch of stuff. Thank you for watching. I love your faces and I'll see you right back here tomorrow.

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