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

Post by peanuty1 » Thu, Nov 17, 2022, 11:30 PM UTC

jandrese wrote: post #232

jerf wrote: post #54

Earlier quoted context omitted.

That's one theory. Of course, given the depth of financial depravity on display here and the incredible thinness of the financial defense, one must also entertain the theory that they did do the due diligence, they were aware of how dangerous this was, and they invested anyhow for other reasons. And that those reasons are probably not good. There have been many cases where companies go to great lengths to do accounti…

What blows my mind is that SBF is going to investors asking for money in his billion dollar "no you can't look at the books" crypto hedge fund while looking like he's playing hookie from his math class and playing video games during the pitch meeting and the supposedly very serious Wall Street types went "Wow! This guy is amazing! All the money he wants and more!".

Post by solresol » Thu, Nov 17, 2022, 11:36 PM UTC

adam_arthur wrote: post #319

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 was trying to reason through why somebody would step in as CEO specifically for the bankruptcy. How does he get compensated? I’m assuming it’s not simply a goodwill/hobby thing

Post by soperj » Thu, Nov 17, 2022, 11:39 PM UTC

UncleOxidant wrote: post #240

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…

And this is only after a few days that's he's had to examine the FTX books. There's likely a lot more bodies buried that will take a bit longer to find.

Post by mikeyouse » Thu, Nov 17, 2022, 11:46 PM UTC

ShamelessC wrote: post #326

w23j wrote: post #74

Those are some candid remarks by the new CEO. "I have over 40 years of legal and restructuring experience. [...] 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. From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of in…

Not from finance - what is meant here by “potentially compromised”? Is that just as vague in context?

Post by ncpa-cpl » Thu, Nov 17, 2022, 11:48 PM UTC

bluedevil2k wrote: post #10

55555 wrote: post #4

The new CEO of FTX states that FTX had no accounting department. lol. > “The Debtors do not have an accounting department,” Ray wrote, stating he expected it would be “some time” before reliable financial statements could be prepared.

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.