FTX Bankruptcy: New Shocking Details About FTX You'd Never Have Imagined!

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With so much drama around FTX’s crash, there have been new discoveries about the truth of what really went down in the organization. I bet you a million times over that you’d never believe the latest discoveries!!!.

  • Zero Structure: No Board Meetings, Work schedule, or job description

What’s an organizational structure without board meetings or management meetings? How exactly do you make decisions to move the company forward if there are no meetings to deliberate on these matters? How are “matters arising” supposed to be sorted if there are no platforms to table them?

Most entities in the FTX Group, particularly those in Antigua and the Bahamas, had inappropriate governance structures. Notably, most never had any board meetings. Attempts to compile a list of all employees have failed because many of them could not be located.
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  • Apparently, they thought it was okay to launder users' funds on FTX executives

Why am I not surprised by this one in particular? We’ve seen this happen too many times in big organizations, as well. Reports have it that some executives diverted funds meant for users to personal use. They were used to acquire homes, automobiles, and a ton of personal assets for executives without accurate documentation.

Related party loans at sister firm Alameda Research comprised loans of $1 billion, $543 million, and $55 million to SBF, FTX’s top executive Nishad Singh, and co-CEO Ryan Salame, respectively.
An earlier report also claimed that SBF withdrew $300 million from the $420 million FTX raised in October 2021 during the bull market.
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  • Again, Record-keeping is zero

Not only did they not have a proper cash-flow record, but there was also no precise record of the amounts that the clients deposited.

FTX Group companies stored private keys to customer assets in an unsecured group email account. The firm also used “software to conceal the misuse of customer funds.”
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Board meetings aside, they lacked a reliable record-keeping mechanism. There was no clear-cut job description and working hours for both employees and contractors to work with. Attempts to compile a list of all employees have failed because many of them could not be located.

  • How Were Requests Granted?

In addition to the fact that monies from users were used to buy residences for key executives. The cash flow wasn't properly documented. All FTX employees had to do to have their requests approved was send them over to the company's online chat channel, and the executive in charge would respond with an emoji. Still no proper record, just chats!

As a result, there was no adequate paperwork and no means to determine the precise amount they possessed at any one time. Heck, a business without accurate employee record information wouldn't exactly be able to keep tabs on how much cash they had!

Most decisions were made via chats, and FTX founder and former CEO Sam Bankman-Fried (SBF) reportedly encouraged employees to use apps that automatically deleted the messages after a while. Hence, the absence of lasting records of decision-making
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PS: Kindly refer to the source for more concrete details.

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