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The new CEO of FTX states that FTX had no accounting department. lol. > “The Debtors do not have an accounting department,” Ray wrote, stating he expected it w
by 55555 4y ago
The new CEO of FTX states that FTX had no accounting department. lol.
> “The Debtors do not have an accounting department,” Ray wrote, stating he expected it would be “some time” before reliable financial statements could be prepared.
- shakezula 4y agoI guess I’m not that surprised after seeing that balance sheet from FTX floating around.
- delusional 4y agoIt's not floating around, that makes it sound like it maybe wasn't real. It was published by the financial times. It's real. He's trying to sell that tire fire to investors.
- bluedevil2k 4y agoThis shouldn’t be surprising at all after seeing their balance sheet with round numbers like $5,000,000,000 in assets and $12,000,000,000 in liabilities. It looked like SBF made it in Excel while his LoL game was loading.
- bombcar 4y agoI want that XLSX file. I want to print out that spreadsheet for my bedsheet. It's a work of art; it should be hung in every office in the country as a reminder.
- emehex 4y agoHere it is! https://d1e00ek4ebabms.cloudfront.net/production/7ab64a3b-6ce0-47cc-96ac-5e2d2a8c5d6c.png https://d1e00ek4ebabms.cloudfront.net/production/7ab64a3b-6c...
- bombcar 4y agoThank you! That's the highest resolution PNG of it I've seen so far, but someday I hope to get the actual XLSX.
- HWR_14 4y agoYou can retype it. I don't there are any supporting sheets. It should take like 2 minutes
- weezin 4y agoExhibit A of the incompetence defense.
- notahacker 4y agoThink it'd be Exhibit A for the prosecution tbh. They were a financial services company run by ex-traders, not a mum and pop shop that might genuinely be running a legitimate business on napkin math
- belter 4y agoWill somebody please do a Benford's law on this one? I am too busy counting my virtual coins. https://en.wikipedia.org/wiki/Benford%27s_law https://en.wikipedia.org/wiki/Benford%27s_law
- bombcar 4y agoI don't think you even need Benford's law - "Hidden, poorly internally labled 'fiat@' account" has to trigger some more fundamental law.
- kwertyoowiyop 4y agoThis phrase will become legendary in business and accounting.
- agentdrek 4y ago
- lelandfe 4y ago> could be slightly off; there is also obviously a chance of typos etc
- whymauri 4y agoThrowback to when HN was praising FTX for running so 'lean' and 'efficiently,' only hiring the bare minimum to be successful.
- ValentineC 4y agoI couldn't find any such comments, but this one from August 2021 aged really poorly: https://news.ycombinator.com/item?id=28798944 https://news.ycombinator.com/item?id=28798944
- gruez 4y agoAged poorly in what sense? 1. "FTX is very well capitalized" - given that August 2021 was in the middle of the crypto bull market, that statement was probably true at the time. Sure, it became poorly capitalized later, but that wouldn't make the comment age poorly, any more than a statement like "the fed has inflation under control" in 2019 would age poorly. 2. "Can you show me even napkin math that shows FTX going under if USDT blows up in a realistic scenario" - FTX blew up for an entirely different reason
- bluedevil2k 4y agoIt was never well capitalized. They used their own made up token as an asset and assigned a fake inflated valuation to it.
- anotheracctfo 4y agoIt's wild to me that they can basically print counterfeit USD and put it on their SEC filings, and the Treasury is just okay with it.
- shawabawa3 4y agoSEC filings? They never made any SEC filings The vast majority of their business was based in the Bahamas and Antigua to avoid US regulators
- hotpotamus 4y agoI was under the impression that was a hastily prepared document for essentially marketing purposes when they were shopping around for a buyer/savior, and the fact that Binance looked at it and quickly nixed any thought of a deal speaks for how well it worked for that purpose. But I assume there are more detailed docs internally, though I'm sure those will be problematic too.
- xdavidliu 4y agoI don't think someone who splurged on Miami Heat stadiums and Tom Brady ads would lower himself to buying a gaming pc that has loading times
- ncpa-cpl 4y agoThat Balance Sheet is so unbelievably wrong. I would have gotten an F if I had done that in my first Accounting 101 quiz. Just to see it describing the financial situation of a company holding millions is just unbelievable.
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- frankjr 4y agoI wonder how that could have possibly worked. I mean they had more than a hundred companies in various countries - somebody must have occasionally filed documents / reports with the local authorities, right?
- mikeyouse 4y agoThey haven't named the firm, but the same paragraph goes on to say that they used an external accounting partner for their books.