FTX new CEO John Ray, who helped oversee some of the biggest bankruptcies ever, including Enron’s, said he’s never seen anything as bad as FTX 🤯 Here 8 shocking highlights:
(1) FTX lent co-founder & CEO Sam Bankman-Fried (SBF) over $1 billion for personal use. They also loaned their Director of Engineering Nishad Singh $543 million. $1.5B just like that 🌪
(2) FTX used customer (!!!) funds to buy houses for workers in the Bahamas🇧🇸. Employees and executives effortlessly put their names on homes purchased with company funds.
(3) FTX didn’t keep proper records of whom they employed and what those employees did. Their total employee count was probably fake.
(4) SBF made all business decisions on apps that auto-deleted everything after some time (Signal). He encouraged all employees to do the same.
(5) FTX had no cash management system. Nobody had any idea how much cash was on hand at any given time, or even where all their cash was.
(6) FTX didn’t keep any books or records of its digital assets.
(7) Digital assets deposited by customers weren’t even recorded on the balance sheet.
(8) The exchange built software to hide the misuse of customer funds.
FTX was supposedly worth $32 billion, it was backed by top-tier venture capital firms and grew into one of the biggest digital asset exchanges in the world.
Yet, now it appears it had far less documentation, structure, and organization than any fantasy sports league.
The worst part is that it really might be the biggest fraud case of all time.