The whole world was in shock when the news broke out in November 2022 that the crypto exchange company FTX went bankrupt. But the latest revelations about how former FTX CEO Sam Bankman-Fried managed his company, left everyone stunned who has been following this drama.

FTX is a Bahamian cryptocurrency exchange company and was the second-biggest one in this field after Binance. This company has been linked to many famous sports organizations like the Mercedes F1 team, NBA’s Miami Heat, and the eSports organization Team SoloMid (TSM).

Being such a massive organization, FTX dealt with billions of dollars. So, none could believe the news of their bankruptcy. Further, the audience questioned what exactly went wrong with this multi-billion company. Finally, there are answers thanks to the newly appointed CEO at FTX.

How Sam Bankman-Fried led FTX to its doom

John J. Ray III has been appointed as the new CEO of the Bahamian crypto exchange after the founder Sam-Bankman Fried vacated his seat. Since Ray took the reins, he discovered many flaws in the company’s work, primarily no proper records of their finance.

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Ray shared with the House Committee on Financial Services, “They use QuickBooks” for their multi-dollar deals. It is an accounting tool that can help small and medium-sized businesses. But this is not suitable for large-scale crypto companies. Even Ray claimed it to be excellent accounting software, but FTX shouldn’t have used it.

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Using QuickBooks wasn’t the only major flaw. Ray further shed light that FTX employees exchanged invoices on communication platforms like Slack. These improper methods led FTX from the world’s second-biggest crypto exchange to a bankrupt company.

The world was shocked by the new CEO’s revelation

Everyone was in shock when the newly appointed FTX CEO shared how Sam Bankman-Fried used such methods to handle a multi-billion company. Even Twitch streamer HasanAbi couldn’t believe this and claimed even he has an accountant. Let’s look at some reactions.

Some Twitter users also compared this FTX drama to the American crime drama Breaking Bad’s scene, where Ted Beneke had his accountant pretend incompetent by stating she used Quicken, a similar software like QuickBooks, for accounting.

The latest reports suggest Sam Bankman-Fried has been charged with accusations like wired fraud and theft. What do you think about how Bankman-Fried ran FTX, which led to these circumstances?

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