Call us now:
The enclosed first day Affidavit and article (https://lnkd.in/eUhmysXz) say everything about the state of FTX at the time of the filling for Chapter 11.
FTXs appointed liquidator John Ray III, who also oversaw the unwinding and liquidation of Enron, admits that 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.
Reading the Affidavit it describes just about everything financial and organizational that could go wrong with corporates governance, did go wrong. It reads as a litany of errors and failure of oversight. With money being moved around the balance sheet with what appears to be no control, affecting creditors. It also raises questions over the due diligence carried out by investors in FTX and the oversight they performed on behalf of their shareholders.
Rarely do you hear the words ‘Never in my career have I seen such a complete failure of corporate controls’ at such an early stage of an investigation.
One suspects that FTX will go down in history alongside Enron and WorldCom. Raising questions 20 years later as to how such a collapse could occur. It doesn’t look to hopeful for investors and creditors. One can only assume that regulators now have enough information to regulate the crypto market.
Ted Dziekanowski Gerry Kennedy
#crypto #cryptocurrency #accontingfailure #enron #securitiesandexchangecommission
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