Emoji for expenses, penthouses and slipshod accounting: The most damning details from new FTX CEO’s report. - CNBC
1. A total lack of financial and corporate controls
Ray opened his filing torching former management, including former CEO Sam Bankman-Fried, for the failure by leadership to catch and address a stunning, multibillion-dollar hole in the Alameda Research-FTX balance sheets. The losses for investors may reach as high as $8 billion. But with nonexistent or deficient accounting, auditing and disbursement systems, it will take Ray and his forensic investigators "some time" to uncover the truth.
Accurate financials are a key metric for valuing and investing in a company. Venture capital firms poured billions into poster child Bankman-Fried and his companies, valuing them in the tens of billions of dollars. Notably, Bankman-Fried's $40 million penthouse briefly hit the market in the aftermath of the bankruptcy. It has since been removed from public listing."The Debtors did not have the type of disbursement controls that I believe are appropriate for a business enterprise. For example, employees of the FTX Group submitted payment requests through an online 'chat' platform where a disparate group of supervisors approved disbursements by responding with personalized emojis.
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