FTX used corporate funds to purchase employee homes, new filing shows

Post by kranke155 » Thu, Nov 17, 2022, 7:39 PM UTC

DebtDeflation wrote: post #75

unmole wrote: post #15

Earlier quoted context omitted.

> The FTX Group received audit opinions on consolidated financial statements for two of the Silos – the WRS Silo and the Dotcom Silo – for the period ended December 31, 2021. The audit firm for the WRS Silo, Armanino LLP, was a firm with which I am professionally familiar. The audit firm for the Dotcom Silo was Prager Metis, a firm with which I am not familiar and whose website indicates that they are the “first-ever…

>Armanino LLP, Oh look, the same one that "audits" Kraken.

Post by camjohnson26 » Thu, Nov 17, 2022, 7:40 PM UTC

texaslonghorn5 wrote: post #175

moneycantbuy wrote: post #28

how did ftx successfully raise so much vc money recently? do these top vc firms do no due diligence?

lots of the money came in 2021 and 2022. the audits done in july 2021 were by armanino and prager metis, both of which are trying to expand into the digital asset space and would stand to benefit from continued growth and success by ftx. the implication i am making is that there was no way for the audits to be unbiased. if the audits weren't junk, the company probably wouldn't have been big enough to cause such a mes…

Post by SV_BubbleTime » Thu, Nov 17, 2022, 7:42 PM UTC

bombcar wrote: post #77

moneycantbuy wrote: post #28

how did ftx successfully raise so much vc money recently? do these top vc firms do no due diligence?

Nobody wants to admit that a vast majority of VC due diligence is just assuming that the other VCs did due diligence.

Post by jbverschoor » Thu, Nov 17, 2022, 7:49 PM UTC

whymauri wrote: post #49

bluedevil2k wrote: post #10

Earlier quoted context omitted.

This shouldn’t be surprising at all after seeing their balance sheet with round numbers like $5,000,000,000 in assets and $12,000,000,000 in liabilities. It looked like SBF made it in Excel while his LoL game was loading.

Throwback to when HN was praising FTX for running so 'lean' and 'efficiently,' only hiring the bare minimum to be successful.

Post by SoftTalker » Thu, Nov 17, 2022, 7:53 PM UTC

gdw2 wrote: post #126

boh wrote: post #114

In a separate article Ray also said: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” And this is the same man who oversaw the liquidation of Enron. "Ray said he had found at FTX international, FTX US and Bankman-Fried’s Alameda Research trading company “compromised systems integrity”, “faulty regulatory o…

I wonder if this could result in another round of costly SOX-like regulations?