Failed crypto exchange FTX's spectacular collapse was due to 'hubris, incompetence, and greed,' says first debtors' report
The debtor's filing was being released"in the spirit of transparency that we promised since the beginning of the Chapter 11 process," Ray said. 1. A lack of management and governance controls.
The company also didn't have an organizational structure and at the time of its bankruptcy filing, did not even have a complete list of who its employees were, per the filing.The report states that FTX relied on a small unnamed external accounting firm for nearly all of its basic accounting functions — and the accounting firm appeared to have no specialist knowledge of cryptos or international financial markets. The debtors did not provide further details of this appointment.
"These informal, ephemeral messaging systems were used to procure approvals for transfers in the tens of millions of dollars, leaving only informal records of such transfers, or no records at all," per the report.The report also alleged FTX failed to put in place"basic, widely accepted" security controls to safeguard its crypto assets.
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