Former crypto golden boy Sam Bankman-Fried’s disastrous time at his former platform FTX was even more random and ridiculous than previously reported. FTX’s Latest bankruptcy report Sunday adds additional fuel to still-burning questions about just how greedy and corrupt its former executives were before the cryptocurrency exchange’s eventual collapse.
The 43-page document notes that there are a lot of problems trying to get millions of former FTX clients and investors back their money because there is a “lack of proper record-keeping and controls” in finance, accounting, governance, and even cybersecurity. The company had to dig through past executives’ QuickBooks, Google docs, spreadsheets, and Slack logs to get any insight into where customers’ money went. When this bankruptcy journey began, the company “did not even have current and complete lists of its employees”.
The latest document provides a look at a company that was notorious for how it handled customer accounts. The company said that nearly 80,000 transactions made by the company were left as unprocessed entries in some QuickBooks accounts called Ask My Account. FTX’s hedge fund is Alameda Research’s record company Custody was so “poor” that one document described how employees had to “come up with a certain number, I don’t know” for some cryptocurrency valuations. Bankman-Fried, who often uses the SBF online, was quoted in internal communications as saying, “We’re only able to locate (Alameda) balances… We sometimes find $50 million worth of assets lying around that we’ve lost track of; that’s how life is.”
According to the filing, the people dealing with the cryptocurrency exchange’s bankruptcy said the exchange’s former executives were rookies who “stifled dissent, mixed and misused corporate and customer funds, lied to third parties about their business, and joked inside about their propensity to lose track of millions of dollar assets.” , causing the FTX group to collapse as quickly as it grew.” In addition, there was practically no oversight of any of the exchanges, and the SBF even called some of its finances “unauditable”.
Considering that FTX’s debtors list includes Netflix and AirbnbAnd DoorDash paymentsHe. She’It’s easy to see why FTX named its financials “commEngled. ” in launchJohn Ray III, the FTX CEO managing the company’s bankruptcy, said the FTX group was run by a handful of people who “showed little interest in establishing oversight or implementing an appropriate oversight framework”.
Ray and those running the bankrupt crypto company have hinted that they are also being frustrated by the active criminal investigations surrounding the FTX crash. Sam Bankman-Fried is They are still awaiting trial on federal fraud charges and a campaign finance offense. Executives as before Caroline Ellison is the chief research officer at Alameda And Former Engineering Director Nishad Singh She has already pleaded guilty to fraud charges in the US to FTX, meaning it is “not possible” to interview them while Bankman-Fried is under strict federal oversight.
The fillers also state that the exchange suffered a “massive cyberattack.” on the date of bankruptcya drain on FTX of approximately $432 million.
Ray has already called up former FTX executives at both companies Original bankruptcy filings as well as in Congressional testimony He described the cryptocurrency exchange as “an abject failure of corporate controls at every level.” FTX’s new CEO took former CEO Bankman-Fried to task over how his fellow young crypto fanatics were reported They bought real estate and gave themselves loans using the company’s money.
FTX is trying to cash out the billions of dollars that the company and its former executives have spent, though It had difficulty determining large swathes of its financial resources. Recent bankruptcy filings have shown that FTX has paid more than $3 billion to Bankman Fried and other executives Like Ellison and Singh.