Dear report on FTX control errors published by debtors

Dear report on FTX control errors published by debtors

On April 9, FTX Trading and his affiliated debtors published their first report on the control errors on the competitive stock exchange.

It describes the lack of risk management, inadequate records, poor cyber security and the exaggerated role of Sam Bankman Fried in every decision -making.

According to the announcement, the report is based on the examination of the debtors of Terabytes of electronic data and communications and more than one million documents. Among other things, it contains interviews with 19 former FTX employees, added.

On April 10, the industry researcher Colin Wu found that the technical director Nishad Singh "changed the code base so that Alameda can deduct unlimited amounts of crypto-assets from FTX". A week later it was said that he had changed "to take Alameda from the automatic liquidation".

ftx believers published the first report in which mainly the reasons for the failure of FTX were described, including: SBF has the last word for all important decisions; Shortly after the university degree, core staff has no risk management and operational experience;

-Wu-Blockchain (@wublockchain) 9. April 2023

down into the FTX Rabbit Hole

In addition, according to the report, there was a great dependence on only a few managers. One said: "If Nishad [Singh] were approached by a bus, the whole company would be done. The same problem with Gary [Wang]." Gary Wang was Chief Technology Officer. Both are currently cooperating with the authorities after they are guilty of the indictment.

diagram of the account balance of Alameda Wallets (January ’18 - June ’20)

The blue dot is when Nishad Singh changed the code base so that Alameda can withdraw unlimited amounts of crypto from ftx pic.twitter.com/agxjvqwqq7

- conor (@jconorgan) 9. April 2023

The report also blame Alameda, the research and investment department of FTX. In internal communication, SBF, who is still under house arrest, had previously said that Alameda was essentially "not checkable", and referred to a lack of information and understanding of her balances and transactions.

John Ray III, CEO of FTX, noticed that the FTX Group "failed to implement appropriate controls in areas that were decisive for the protection of cash and crypto-assets before adding:

"The FTX Group was strictly controlled by a small group of people who incorrectly claimed to conduct the FTX Group responsibly, but actually showed little interest in the introduction of an supervision or the implementation of an appropriate control framework."

at the end of March, Cryptopotato reported that the European Department of FTX had resumed withdrawals for customers.

outlook on the cryptom market

The cryptoma markets made and kept marginal profits at the weekend. The total capitalization was $ 1.23 trillion during the Asian trade session on Monday morning.

Bitcoin tapped $ 28,500 a few hours ago before it went back slightly, and Ethereum unchanged at the time of writing this article on this day at around $ 1,850

The cryptoma markets have traded most of the past month in a narrow channel.

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