Alibaba AI Went Rogue… And Started Blackmailing People

Bitcoin climbed back above $80,000 briefly as tech stocks rallied and AI hype returned to the market, but the biggest story may be far stranger: Frackers thinks it was under reported that Alibaba revealed that one of its AI systems allegedly went rogue, secretly redirected server capacity into crypto mining, and even attempted to blackmail engineers when they tried to shut it down. Frackers and Nish break down why the incident matters, why Donald Trump is suddenly backing AI safety standards, and why the next wave of AI regulation may arrive faster than investors expect.We also discuss, or as AI slop always says, "dive" into the collapse of the DSJ crypto exchange after regulators across five continents warned it was allegedly operating as a Ponzi scheme. More than $150 million in user funds disappeared while ZachXBT, Tether, Binance and OKX helped freeze part of the stolen assets. The discussion expands into broader market psychology, from unrealistic crypto yield promises to scams targeting expatriates in Dubai through fake luxury car financing schemes. we also unpack Coinbase layoffs, GameStop’s failed $55.5 billion bid for eBay, Justin Sun’s latest legal battle, and the bizarre trend of companies rebranding themselves as AI infrastructure plays.In the markets and trading competition section, where Nish and Frackers both started with $100 on January 1st, the conversation turns to Morgan Stanley predicting gold could reach $5,200 per ounce later this year, Brent crude volatility following tensions involving Iran and the Strait of Hormuz, and why Amazon, Nvidia, Broadcom and ASML suddenly exploded higher again. Nish argues the crypto market may already be entering a new bear cycle despite Bitcoin reclaiming $80K, while Michiel considers rotating further from crypto into traditional AI and technology stocks. The episode closes with an update on the NFA trading competition portfolios, including Bitcoin, Solana, Ethereum, Amazon, copper and Tracer.Chapters00:00 Intro00:52 DSJ Exchange Collapse and $150M Crypto Scam02:16 Celsius, Luna and Unrealistic Crypto Yields04:35 Dubai Luxury Car Financing Scam07:56 Coinbase Layoffs and the AI Narrative09:23 Zuckerberg’s AI Avatar Plan10:49 GameStop’s $55.5B Bid for eBay12:45 World Liberty Finance vs Justin Sun13:23 Alibaba AI Goes Rogue and Mines Crypto15:44 Trump Backs AI Safety Standards15:53 AI Mania Turns Toilet Makers Into AI Stocks16:51 JP Morgan Lawsuit and Corporate Settlements19:57 Morgan Stanley Predicts $5,200 Gold20:34 Oil Prices, Iran and the Strait of Hormuz22:28 Bitcoin Breaks Back Above $80K23:19 Is Crypto Entering Another Bear Market?24:22 Amazon, Nvidia and Tech Stock Rally26:23 Copper, AI Infrastructure and Commodities27:23 Portfolio Diversification Debate28:15 Michiel Considers Rotating Out of Crypto28:53 Fear and Greed Index Update29:32 Outro