The Enron cleanup guy says FTX is worse than Enron.
I have over 40 years of legal and restructuring experience. I have been the Chief Restructuring Officer or Chief Executive Officer in several of the largest corporate failures in history. I have supervised situations involving allegations of criminal activity and malfeasance . I have supervised situations involving novel financial structures and cross-border asset recovery and maximization .
However, because this balance sheet was unaudited and produced while the Debtors were controlled by Mr. Bankman-Fried, I do not have confidence in it and the information herein may not be correct as of the date stated. Mr. Bankman-Fried claimed that, by the end of 2021, around $15 billion of assets were on the platform, which according to him handled approximately 10% of global volume for crypto trading at the time. Mr. Bankman-Fried also claimed that FTX.com, as of July 2022, had “millions” of registered users. These figures have not been verified by my team.
The FTX Group did not maintain centralized control of its cash. Cash management procedural failures included the absence of an accurate list of bank accounts and account signatories, as well as insufficient attention to the creditworthiness of banking partners around the world.I’m sorry, how is that even possible? Who was in charge here? What were they doing? Oh my god. So, uh, “because of historical cash management failures,.
How did FTX keep its books on digital assets? Trick question! They didn’t keep books at all! And somehow, improbably, the situation is worse than that, even?
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