Comment history

Proguing says...

And they told us that crypto and FTX was supposed to bring endless prosperity to the Bahamas...lol. And some people still claim that this is just a "blip", that nothing has changed

Proguing says...

There is some other interesting info in that article:

Appointed at FTX’s Chapter 11 filing last Friday, the seasoned bankruptcy chief said FTX saw at least $372 million of "unauthorized transactions" just hours into his position as the platform’s new CEO. The firm has since put blockchain analytics company, Chainalysis, on the case.

Last week, the WSJ reported FTX could be missing up to $10 billion due to the decision by former ftx ceo Sam Bankman-Fried and others to use customer funds to make payments owed by sibling trading firm Alameda Research.

As for taming FTX's balance sheet, that might not happen any time soon, according to Ray, who raised questions around the accuracy of the failed enterprise's financials, including ftx us, ftx, and Alameda.

"Because this balance sheet was produced while the Debtors were controlled by Mr. Bankman-Fried, I do not have confidence in it, and the information therein may not be correct as of the date stated," Ray wrote at several points in the document.

One reason is because there is little to no paper trail for key management decisions, the liquidator pointed out.

“Mr. Bankman-Fried often communicated by using applications that were set to auto-delete after a short period of time, and encouraged employees to do the same," he stated.

FTX “did not maintain centralized control of its cash” and failed to keep an accurate list of bank accounts and account signatories, or pay sufficient attention to the creditworthiness of banking partners, according to Ray. Advisers don’t yet know how much cash FTX Group had when it filed for bankruptcy, but has found about $560 million attributable to various FTX entities so far.

"In the Bahamas, I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors. I understand that there does not appear to be documentation for certain of these transactions as loans, and that certain real estate was recorded in the personal name of these employees and advisors on the records of the Bahamas," Ray said, who also noted that the company didn't have appropriate corporate governance and never held board meetings. There was no accurate list of bank accounts and account signatories, as well as insufficient attention paid to the creditworthiness of banking partners.

Ray said the company did not have “an accurate list” of its own bank

Proguing says...

Damage is a lot more than $7-9 Billion. You also have to take into account the money lost by investors:

https://www.forbes.com/sites/chasewitho…

On Bahamian regulator probing FTX woes

Posted 11 November 2022, 7:59 a.m. Suggest removal

Proguing says...

Hmmm if I was Chinese I would not want my fate to be determined in a US court

Proguing says...

I still don't understand what the US courts have to do with Bahamar? If I get into a conflict with a Bahamian construction company, I can sue them in NY?

Proguing says...

and pirates...

Proguing says...

One more from Bloomberg:

FTX’s Financial Black Hole Leaves Binance Balking at Rescue Plan

Binance unlikely to complete takeover, person familiar says

Gap between FTX assets and liabilities may be in the billions

https://www.bloomberg.com/news/articles…

Proguing says...

More breaking news:

FTX Faces Probe From US Regulators for Lending and Client Fund Handling

https://watcher.guru/news/ftx-faces-pro…

and Alameda's website goes "private":

https://www.alameda-research.com/

Proguing says...

Breaking news:

Most of FTX’s legal and compliance staff have quit

https://www.semafor.com/article/11/09/2…

Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books

https://www.coindesk.com/business/2022/…

Proguing says...

Nice try to put some lipstick on the pig. Fact is FTC described as the second largest crypto exchange in the world went up in smoke in a few hours. This is unprecedented and it took place in our jurisdiction. Not the type of publicity we want to have, and it will have far reaching consequences.