Once again I need to poin tout the shocking truth that FTX had no CFO [1]. The CFO's experience and reputation is waht gives investors and regulators confidence that the financial statements that the CFO literally signs off on are valid.
Listed companies on the NASDAQ and NYSE have lots of requirements here (eg internal and external audits). Obviously these don't apply to FTX but the truly shocking thing here is the likes of Sequoia and other sophisticated investors did not require an adult in the room in the form of a CFO.
They literally handed billions of dollars to a 20-something with absolutely no supervision or accountability. I would not be surprised if this lack of oversight doesn't land them in court from customers and other investors. You may think they are shielded from this through limited liability and corporate structures but that doesn't innoculate them against tort claims and you could probably make the case they are recklessly negligent or even as far as being liable in conspiracy to commit fraud (before or after the fact).
SBF engaged in on-the-record messages with a reporter about this. This is how clueless this man is. He either doesn't have lawyers or he's ignoring them as any lawyer will tell you to STFU [2]. No good can come of this ans. SBF and his cohorts are facing the prospect of being on the run for the rest of their lives from US authorities or possibly even spending the rest of their lives in prison.
This blame game again. Look, the universe is a deterministic machine. SBF or his mom and dad are no more to blame than you were when you accidentally squashed a bug walking this morning! Should we start taking everyone to account for their actions? Where will this end?
Listed companies on the NASDAQ and NYSE have lots of requirements here (eg internal and external audits). Obviously these don't apply to FTX but the truly shocking thing here is the likes of Sequoia and other sophisticated investors did not require an adult in the room in the form of a CFO.
They literally handed billions of dollars to a 20-something with absolutely no supervision or accountability. I would not be surprised if this lack of oversight doesn't land them in court from customers and other investors. You may think they are shielded from this through limited liability and corporate structures but that doesn't innoculate them against tort claims and you could probably make the case they are recklessly negligent or even as far as being liable in conspiracy to commit fraud (before or after the fact).
SBF engaged in on-the-record messages with a reporter about this. This is how clueless this man is. He either doesn't have lawyers or he's ignoring them as any lawyer will tell you to STFU [2]. No good can come of this ans. SBF and his cohorts are facing the prospect of being on the run for the rest of their lives from US authorities or possibly even spending the rest of their lives in prison.
It's that serious.
[1]: https://www.ledgerinsights.com/ftx-warning-signs-no-cfo/
[2]: https://www.youtube.com/watch?v=sgWHrkDX35o