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How are large transfers like $400 Million not double, triple, quadrupled checked by multiple people before it's made? This boggles my mind.

deleted 4y ago
[deleted]
bogomipz 4y ago
Or reconciled via periodic book keeping? This mistake was made 3 weeks ago. The fact that the internet is doing accounting for crypto.com should be a huge red flag.
- jjeaff 4y ago
  Is it the case that they hadn't caught the error until the public found out? Or just that they hadn't made any statement about the error until they had to? Because if they didn't actually correct the error until it was called out, that makes me think that surely there is something nefarious going on. Like an internal attempt to steal something.
  - bogomipz 4y ago
    Yeah, unsure. I just reread the article. It's not entirely clear to me. The CEO's Tweets from today seem to be a feeble attempt at "full transparency" which never seems to work well after the fact. It is also rather light on any meaningful detail around time lines. The last Tweet from him reads very much like "move along, there's nothing to see here." Between this latest oversight, the connection to Ensogo and Wirecard, this CEO seems like just another huckster.[1][2] [1] https://www.thedailybeast.com/cryptocom-ceo-kris-marszalek-had-messy-past-before-staples-center-renaming https://www.thedailybeast.com/cryptocom-ceo-kris-marszalek-h... [2] https://www.coindesk.com/markets/2020/06/25/cryptocoms-card-issuer-wirecard-files-for-insolvency/ https://www.coindesk.com/markets/2020/06/25/cryptocoms-card-...
hanklazard 4y ago
Exactly. Thus it was probably not a mistake. It’s very hard for me to believe such a ridiculous explanation.
MacsHeadroom 4y ago
There's a rumor making the rounds that this $400M transfer was not an accident, but an intentional part of a scheme to defraud auditors. The rumor is currently unconfirmed.
- caminante 4y ago
  > defraud auditors Huh? Why would you take money from auditors? What's the scheme?
  - therein 4y ago
    Exchange A has an audit, asks Exchange B to temporarily send some large amount of funds while the Exchange A captures a snapshot of their reserves for the audit.
    - caminante 4y ago
      Ah! Not quite, but similar to "check kiting".
jnwatson 4y ago
They are not double checked for the same reason why the FTX CEO got leverage numbers wrong due to poorly labelled accounting ledgers: these folks are making it up as they go, and don't want to pay adults to look over things.

deleted 4y ago

[deleted]

bogomipz 4y ago

Or reconciled via periodic book keeping? This mistake was made 3 weeks ago. The fact that the internet is doing accounting for crypto.com should be a huge red flag.

jjeaff 4y ago
Is it the case that they hadn't caught the error until the public found out? Or just that they hadn't made any statement about the error until they had to? Because if they didn't actually correct the error until it was called out, that makes me think that surely there is something nefarious going on. Like an internal attempt to steal something.
- bogomipz 4y ago
  Yeah, unsure. I just reread the article. It's not entirely clear to me. The CEO's Tweets from today seem to be a feeble attempt at "full transparency" which never seems to work well after the fact. It is also rather light on any meaningful detail around time lines. The last Tweet from him reads very much like "move along, there's nothing to see here." Between this latest oversight, the connection to Ensogo and Wirecard, this CEO seems like just another huckster.[1][2] [1] https://www.thedailybeast.com/cryptocom-ceo-kris-marszalek-had-messy-past-before-staples-center-renaming https://www.thedailybeast.com/cryptocom-ceo-kris-marszalek-h... [2] https://www.coindesk.com/markets/2020/06/25/cryptocoms-card-issuer-wirecard-files-for-insolvency/ https://www.coindesk.com/markets/2020/06/25/cryptocoms-card-...

hanklazard 4y ago

Exactly. Thus it was probably not a mistake. It’s very hard for me to believe such a ridiculous explanation.

MacsHeadroom 4y ago

There's a rumor making the rounds that this $400M transfer was not an accident, but an intentional part of a scheme to defraud auditors. The rumor is currently unconfirmed.

caminante 4y ago
> defraud auditors Huh? Why would you take money from auditors? What's the scheme?
- therein 4y ago
  Exchange A has an audit, asks Exchange B to temporarily send some large amount of funds while the Exchange A captures a snapshot of their reserves for the audit.
  - caminante 4y ago
    Ah! Not quite, but similar to "check kiting".

jnwatson 4y ago

They are not double checked for the same reason why the FTX CEO got leverage numbers wrong due to poorly labelled accounting ledgers: these folks are making it up as they go, and don't want to pay adults to look over things.