Court filings reveal the lack of internal controls at FTX
An alarming report produced as part of FTX’s ongoing bankruptcy describes failures in cybersecurity, internal controls, and asset management.
Cryptocurrency news by Protos · Protos
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Show Notes
FTX has filed a new report as part of its ongoing bankruptcy that discusses how failures of internal controls contributed to the firm’s collapse.
The report describes how FTX was led by Sam Bankman-Fried, with other executives almost universally deferring to him. The report also highlights unmanaged so-called ‘key person risk’ with one executive saying, “If Nishad (Singh, the firm’s director of engineering) got hit by a bus, the whole company would be done. Same issue with Gary.”
Listen to the article to learn how FTX lacked an internal audit team, many of its entities worked without key personnel including chief financial officers and chief risk officers and overall possessed questionable corporate structures and safeguarding procedures.
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