> [1] The nature of their fraud is that they are grossly overvaluing their illiquid assets. Because they have never undergone an audit, they can get away with this - they can claim that their illiquid assets are worth <whatever value they want>, with no third party oversight.
Indeed, the attestations (not audits!) that they have the money backing it even explicitly have the note on them that the assets are marked at cost of purchase, instead of mark-to-market.
Indeed, the attestations (not audits!) that they have the money backing it even explicitly have the note on them that the assets are marked at cost of purchase, instead of mark-to-market.