In a bankruptcy filing, FTX’s lucky emergency CEO — a veteran of the Enron bankruptcy, note — looks upon Sam Bankman-Fried’s works and despairs: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.” He added: “I award you no points. And may God have mercy on your soul.”
As Matt Levine notes, the filing makes clear that not only could FTX not be arsed to keep track of the bets it made with other people’s money, it’s not clear it even wrote down how much of other people’s money it had in the first place, much less where it all went. You may argue SBF and friends were decentralizers and disruptors, dude, not boring financiers. But you don’t need an MBA to grok the accounting concept of “don’t misplace the customers’ money.
‘Enforcement 40’ for 2020
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