Will not help. The forensic auditors are going to have an easy time with this. It seems the criminal activities were not obfuscated in an intricate way.
Rostin Behnam, the Chairman of the CFTC, had to have known what was going on ....
FOLLOW THE MONEY.........................
All we can hope for is the Clawback’s will be brutal.
We know these little shits have billions in crypto squirreled away on thumb drives.
“ accounting, audit, cash management, cybersecurity, human resources, risk management, data protection and other systems that did not exist”
That’s the beauty of cryptoscam - you don’t need all that stuff
He did everything right. The democrats all got their cut. Only Soros gave the democrats more cash. His mistake was bribing the Clinton’s and Obama’s to hang out “with the cool kids.” Their egos wouldn’t allow some snot nose geek to take on the “effective altruism” money laundering scams run by CLinton and Obama.
A failure of corporate controls? From what I have read, there were no corporate controls.
That horse boke out of the barn and died of old age.
Is this new CEO one of the upper echelon that had group sex with in the building during work hours led by the former CEO?
corporate controls are only for the non-woke!!!
if your woke, you can do anything
if your a republican they investigate until they find something you might be guilty of!
LOL. So does Ray know fraud, graft, and corruption when he sees it?
Bingo! They setting the stage for “poor good-hearted Sam” was an innocent victim when he was actually laundering money for the Biden Administration and Zelensky. Not to mention likely grand larceny, fraud and front-running.
The co-CEO of FTX, Ryan Salame, also made many millions of dollars of political donations.
EEMARKETWATCH.COM
Published: Nov. 17, 2022
By Nathan Vardi
10 crazy things detailed in FTX’s bankruptcy filing
1. Most of FTX’s digital assets have not been secured
As of Thursday, Ray made clear that while he now controls the various FTX trading and exchange platforms and Bankman-Fried’s crypto hedge fund Alameda Research, he’d “located and secured only a fraction of the digital assets” he hoped to recover. In fact, Ray said only some $740 million of cryptocurrency had been secured in new cold wallets. Ray cited at least $372 million of unauthorized transfers that had taken place on the day FTX and Alameda filed for bankruptcy last week, and the “dilutive ‘minting’ of approximately $300 million in FTT tokens by an unauthorized source” in the days after the filing. FTT tokens were created by FTX to facilitate trading on its exchange and made up a big chunk of Alameda’s assets.
2. Nobody knows who the biggest customer creditors are of FTX.
FTX.com and FTX.US had customers around the world who used its cryptocurrency exchanges and platforms. But Ray said he was unable to create a list of FTX’s top 50 creditors that included customers.
3. Alameda Research loaned $4.1 billion out to entities, including Bankman-Fried and his closest partners.
There have been reports that FTX lent out billions of dollars in customer funds to Bankman-Fried’s hedge fund, Alameda Research. But on Thursday, Ray revealed that Alameda had made $4.1 billion of related-party loans that remained outstanding at the end of September. This included a $1 billion loan Alameda made to Bankman-Fried himself, a $543 million loan made to FTX cofounder Nishad Singh, and $55 million borrowed by FTX co-CEO Ryan Salame.
4. FTX corporate funds were used to buy personal homes
Bankman-Fried lived in a luxury resort in the Bahamas, where FTX was also based. There, bankruptcy filings say, corporate funds of FTX “were used to purchase homes and other personal items for employees and advisors.” Ray said in his filing that there is no documentation for the transactions and loans associated with these real estate purchases, which were recorded in the personal name of employees and advisors.
5. Personalized emojis to approve disbursements
To demonstrate the lack of disbursement and appropriate business controls at FTX, Ray pointed out that FTX employees “submitted payment requests through an on-line ‘chat’ platform where a disparate group of supervisors approved disbursements by responding with personalized emojis.”
6. Alameda Research was one of the world’s biggest hedge funds
According to the bankruptcy filing, Alameda’s balance sheet showed $13.46 billion in total assets as of the end of September. That’s roughly equivalent to the assets managed by famous billionaire hedge fund traders like Bill Ackman, Paul Tudor Jones and Jeffrey Talpins.
8. Alameda had a secret exemption on FTX.com
Ray’s filing on Thursday indicated that Bankman-Fried’s Alameda hedge fund might have had a trading edge on the FTX.com trading platform. According to the filing, Alameda had a “secret exemption” from “certain aspects of FTX.com’s auto-liquidation protocol.”
9. Customer liabilities are not reflected in FTX financial statements
Ray expects that the FTX.US exchange and trading platform, which serviced American customers, will have “significant liabilities arising from crypto assets deposited by customers through the FTX US platform.” He believes the FTX exchange that was used by FTX clients outside the U.S. could also have significant client liabilities. But none of these liabilities are reflected in the financial statements that were prepared while Bankman-Fried ran FTX, Ray said.
10. Ray has no confidence in any FTX balance sheet
Time and again in the filing, Ray offers the same disclaimer after detailing FTX-related financial statements. He notes that many of the balance sheets at FTX and Alameda are unaudited, and that because they were produced while Bankman-Fried ran and controlled the company, “I do not have confidence in it.”