An internal report on what went wrong at FTX. Apparently its what you would expect.
"While the FTX Group’s failure is novel in the unprecedented scale of harm it caused in a nascent industry, many of its root causes are familiar: hubris, incompetence, and greed."
As we get into public policy - and especially regulatory policy - we'll note that over history these types of things have led to the passage of laws creating regulations.
- Click here for the report.
WILMINGTON, Del., April 9, 2023 /PRNewswire/ -- FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the "FTX Debtors") today announced the release of their first report, which identifies and discusses control failures by FTX Group's previous management team in critical areas, including management and governance, finance and accounting, digital asset management, information security and cybersecurity (the "Report"). The Report is based on the Debtors' review of terabytes of electronic data and communications, more than one million documents, and interviews conducted with 19 former FTX Group employees, among other information. This work was undertaken by the Debtors through a team of legal, restructuring, forensic accounting, cybersecurity, computer engineering, cryptography, blockchain and other experts.
The Report and related information can be found on the docket of the Chapter 11 cases and posted on the quick links section of the FTX Debtors Kroll site at https://cases.ra.kroll.com/FTX/.
John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, said: "We are releasing the first report in the spirit of transparency that we promised since the beginning of the Chapter 11 process. In this report, we provide details on our findings that FTX Group failed to implement appropriate controls in areas that were critical for safeguarding cash and crypto assets. FTX Group was tightly controlled by a small group of individuals who falsely claimed to manage FTX Group responsibly, but in fact showed little interest in instituting oversight or implementing an appropriate control framework. We are continuing our efforts to review the events that factored into the fall of FTX and to identify and recover as much value as possible for creditors."
