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My point is not "FTX's books were in good shape"; with the benefit of hindsight they clearly weren't. Instead, my point is that an exchange saying that they pa
by jefftk 4y ago
My point is not "FTX's books were in good shape"; with the benefit of hindsight they clearly weren't.
Instead, my point is that an exchange saying that they passed a GAAP audit isn't the level of positive signal my parent seems to think it is.
- brazzledazzle 4y agoReading it doesn’t it say they have completed the requirements to pass but haven’t actually passed? Seems like the kind of word play that should send red flags.
- kevin_thibedeau 4y agoThey didn't say that they passed, just that they claimed to "complete requirements" needed to pass. The financial engineering version of lying with facts like "assembled in USA from foreign components".
- jefftk 4y agoThey claimed to have passed: 2021-07-21 "Yesterday, FTX became the first (?) crypto derivatives exchange to complete a GAAP audit!" -- https://mobile.twitter.com/sbf_ftx/status/1421354721911115776 https://mobile.twitter.com/sbf_ftx/status/142135472191111577... 2021-08 -26: "Both @FTX_Official and @ftx_us have passed US GAAP audits and plan to continue getting audits going forward." --https://twitter.com/SBF_FTX/status/1431087427154849795 https://twitter.com/SBF_FTX/status/1431087427154849795
- HideousKojima 4y agoHe doesn't seem to mention what third party completed the audit, and given what we know about FTX's accounting now that means it was either an internal audit or SBF was lying.
- jefftk 4y agoCoindesk seems to have obtained the audited financials and reported on them: https://www.coindesk.com/layer2/2022/11/18/a-complete-failure-of-corporate-controls-what-investors-and-accountants-missed-in-ftxs-audits/ https://www.coindesk.com/layer2/2022/11/18/a-complete-failur...
- throwoutway 4y agoI assume they were counting the FTT tokens as actually holding value when they were propped up