4 ms·

FTX had many parts, did that audit actually cover all of them or was that just for a subset of companies?

jefftk 4y ago
It probably didn't cover all of them: all of the announcements I can find from the time just talk about FTX US and International. But if you're trying to decide whether to keep your money in another exchange, and they talk about how they have passed a GAAP audit "did the audit actually cover everything I care about" is still a live question.
- coffeebeqn 4y ago
  Basically if you want to keep your money in a regulated institution, don’t use a crypto exchange. You can be your own bank or just sell the crypto and buy some funds where you know some basic facts about where your money is and who can touch it. I can’t imagine why anyone would risk keeping their assets in binance. Do you know basic facts like which jurisdiction in the world they are even based in? Optimistically it sounds like a 50% chance they are actually fine and 50% chance they’re on the path of FTX. Big risk with no reward other than minor convenience
  - hgsgm 4y ago
    Coinbase and Gemini are regulated USA exchanges. Gemini had been fined for violating regulations. (Gemini Earn was a third-party fraudulent investment product, enabled by Gemini company. FTX was a fly-by-night international exchange like Binance. I don't understand FTX.us . It was US regulated? Did people lose money in FTX.us exchange?
- hef19898 4y ago
  No need to speculate, there were to seperate "audits", which were unrelated from each other, and only covered parts of the enterity of FTX. And Pager Matis' selling point seems to have been a Metaverse HQ...
dragonwriter 4y ago
> FTX had many parts, did that audit actually cover all of them or was that just for a subset of companies? No; this is covered in detail in the FTX et al. bankruptcy filing.
RC_ITR 4y ago
People seem to forget that the entire point of shell structures is accounting tricks. Sure FTX (the audited entity) really did have a piece of paper saying “magic beans company owes FTX $1bn in bitcoin” and all a GAAP audit would do is look at that paper and say “yep, this paper is worth $1bn (with maybe some repayment risk discount).” Maybe a good audit team tries to understand who really owns magic beans corp, but it’s easy to hide things like that. FTX the audited entity could be totally fine, but then the shells are where the problem lies.

It probably didn't cover all of them: all of the announcements I can find from the time just talk about FTX US and International. But if you're trying to decide whether to keep your money in another exchange, and they talk about how they have passed a GAAP audit "did the audit actually cover everything I care about" is still a live question.

coffeebeqn 4y ago
Basically if you want to keep your money in a regulated institution, don’t use a crypto exchange. You can be your own bank or just sell the crypto and buy some funds where you know some basic facts about where your money is and who can touch it. I can’t imagine why anyone would risk keeping their assets in binance. Do you know basic facts like which jurisdiction in the world they are even based in? Optimistically it sounds like a 50% chance they are actually fine and 50% chance they’re on the path of FTX. Big risk with no reward other than minor convenience
- hgsgm 4y ago
  Coinbase and Gemini are regulated USA exchanges. Gemini had been fined for violating regulations. (Gemini Earn was a third-party fraudulent investment product, enabled by Gemini company. FTX was a fly-by-night international exchange like Binance. I don't understand FTX.us . It was US regulated? Did people lose money in FTX.us exchange?
hef19898 4y ago
No need to speculate, there were to seperate "audits", which were unrelated from each other, and only covered parts of the enterity of FTX. And Pager Matis' selling point seems to have been a Metaverse HQ...

dragonwriter 4y ago

> FTX had many parts, did that audit actually cover all of them or was that just for a subset of companies? No; this is covered in detail in the FTX et al. bankruptcy filing.

RC_ITR 4y ago

People seem to forget that the entire point of shell structures is accounting tricks. Sure FTX (the audited entity) really did have a piece of paper saying “magic beans company owes FTX $1bn in bitcoin” and all a GAAP audit would do is look at that paper and say “yep, this paper is worth $1bn (with maybe some repayment risk discount).” Maybe a good audit team tries to understand who really owns magic beans corp, but it’s easy to hide things like that. FTX the audited entity could be totally fine, but then the shells are where the problem lies.