Unchained Did the Bahamian Government Direct SBF and Gary Wang to Hack FTX? - Ep. 422
Nov 18, 2022
Wassielawyer, a lawyer specializing in restructuring and insolvency, provides a deep dive into the chaotic FTX bankruptcy. He discusses the complete failure of corporate controls within FTX, the troubling mingling of funds between Alameda and FTX, and the complicated legal battles between U.S. and Bahamian jurisdictions. The implications for FTX US customers seeking asset recovery are explored, alongside troubling revelations about former CEO Sam Bankman-Fried's attempts to save the company amidst an unraveling situation.
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FTX Bankruptcy Unprecedented
- FTX's bankruptcy is potentially worse than Enron, according to John Ray III.
- Ray cites a complete lack of corporate controls and trustworthy financial information.
Unrecorded Customer Deposits
- Customer deposits weren't recorded as assets on FTX's balance sheet.
- This means SBF likely didn't know the actual amount of customer funds.
No Account Separation
- Customer deposits went directly into Alameda's bank account.
- There was no separation of accounts, highlighting severe mismanagement.