I almost can't believe how bad: FTX

  • FTX (some retarded cryptocurrency exchange shit) recently filed for bankruptcy and replaced its CEO with John J. Ray, III, someone who oversaw Enron's bankruptcy filing and liquidation. The previous CEO, Sam Bankman-Fried, had resigned following some very illegal events he had a hand in. This morning, the new CEO filed an affidavit in regards to the bankruptcy, in which he detailed just how bad management was in that company. He summarized the situation quite bluntly as "a complete failure of corporate controls and such a complete absence of trustworthy financial information" and noted that he had never seen something like this before.

    To be more specific, here's just a few things he noted in the affidavit:

    • Ray couldn't trust the accuracy of the financial documents he was provided, and many of which weren't audited at all
    • Executives (beyond Bankman-Fraud and his inner circle) were left in the dark about the situation leading up to the bankruptcy
    • Their human resources were so bad that they didn't even know who worked for the company and who didn't
    • They had a terrible disbursement system in place, with payment requests being made through some chatroom and approved with literal emojis
    • Corporate funds were often used to buy houses and other personal shit, and this was obviously not documented
    • An unsecured group email address had root-level access to things like private keys and sensitive data
    • They used software to cover-up misuses of customer funds
    • They didn't keep track of the investments they made
    • They didn't keep track of decision making and often did so using platforms that offered self-destructive messaging
    • Some of their auditors had a headquarters in the fucking metaverse (HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA)

    In other words, they had shitty (or even in some cases nonexistent) accounting, auditing, cybersecurity, money management, human resources, risk management, and data protection. What a shitshow. The first time I actually heard of them was back in July of this year when a friend of mine literally got an ad shilling this shit in their fucking fortune cookie. I swear you couldn't make this up.

    Here's the affidavit if you're interested: https://pacer-documents.s3.amazonaws.com/33/188450/042020648197.pdf

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