BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

FTX Boss worth $32 billion didn’t have an Accountant

by Chiwuike Owunwa
Nov 18, 2022 - 12:00 am
in Blockchain
FTX Boss worth $32 billion didn't have an Accountant

Following the dramatic FTX meltdown, Aleksandra Huk revealed that recent bankruptcy documents showed that the company once valued at $32 billion, did not have an accountant.

BREAKING: Recent bankruptcy documents reveal, that the company once valued at $32 billion, didn’t have an accountant ☠️

— Aleksandra Huk (@HukAleksandra) November 17, 2022

On Thursday, November 17, 2022. Johnny.eth put out a post on Twitter summarizing his readings from the 30 page FTX Bankruptcy court filing, showing a lot more interest in the FTX’s Chapter 11 First Day Affidavit

I just read FTX's Chapter 11 First Day Affidavit.

In it, the appointed restructuring CEO John Jay Ray III, who oversaw Enron's bankruptcy proceedings, calls FTX's case the worst of his career.

Its contents are shocking.

Here are the highlights:

👇

— jonwu.eth (@jonwu_) November 17, 2022

How bad were FTX’s internal controls?

The appointed restructuring CEO John Jay Ray III, one of the most experienced restructuring executives in the world who oversaw Enron’s bankruptcy proceedings, calls FTX’s case the worst of his career,

He states, “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”.

In sections 46 and 50 there seemed to be no corporate governance, “The FTX Group did not maintain centralized control of its cash” and apparently, they didn’t even keep a running list of all their bank accounts.

FTX did not have the type of disbursement controls appropriate for a business enterprise. For example, employees submitted payment requests through an on-line ‘chat’ platform where a group of supervisors approved disbursements by responding with personalized emojis.

One of their most pervasive failures is particularly the absence of lasting records of decision-making. Mr. Bankman-Fried often communicated by using applications that were set to auto-delete after a short period of time and encouraged employees to do the same.

Corporate funds were used to purchase homes and personal items for employees and advisors which there was little to no documentation or account. FTX did not keep acceptable records, or security controls, regarding its digital assets.

Mr. Bankman-Friedman and Mr. Wang controlled access to the digital assets of the main businesses. Which leaves a couple of questions. Why did $372 million in unauthorized transfers happen on the date of the FTX “hack”? These balances exclude cryptocurrency.

In summary, this could be the most disastrous financial fraud in history. Very well worse than Enron.

Join the BTC-Pulse community on Telegram

Tags: FTX
Chiwuike Owunwa

Chiwuike Owunwa

Chiwuike is a frontend programmer and writer with 3 years experience in the Web3. He's meticulous researcher, enthusiastic about Blockchain and the future of crypto, DeFi, and the Metaverse.

Related Posts

Exterior view of the Czech National Bank building in Prague, symbolizing the institution’s financial strategies and innovation.

Bank of England Governor Says Stablecoins Could Reduce Reliance on Banks

October 1, 2025

Andrew Bailey says stablecoins could reduce UK reliance on commercial banks by separating money from credit, signaling a...

blockchain

Spacecoin Executes First Blockchain Transaction Through Space

October 1, 2025

Spacecoin has achieved the first-ever blockchain transaction through space using a nanosatellite, marking a milestone for decentralization and...

The headquarters of the Autorité des Marchés Financiers (AMF) Investor in Paris, France, the regulatory body warning investors against ByBit.

French Officials Pressured Telegram to Censor Moldova Election Posts: Durov

September 28, 2025

Pavel Durov revealed French intelligence pressured Telegram to censor Moldova election content in 2024, which he refused, citing...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Bitcoin skepticism fades as nations gear up for adoption, says Samson Mow

September 28, 2025

Samson Mow predicts nation-states will move from skepticism to rapid Bitcoin adoption, fueling global FOMO and a rush...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service