FTX used corporate funds to purchase employee homes, new filing shows

Re:FTX used corporate funds to purchase employee homes, new ... by muglug on Thursday November 17, 2022 @02:29PM (#33644304)

Yes, which is why the US Congress added a whole bunch of new regulations (Sarbanes-Oxley) to prevent future Enrons.

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Re:FTX used corporate funds to purchase employee homes, new ... by alfalfasprout on Thursday November 17, 2022 @03:13PM (#33644957)

Which require compliance with them. If you work at a company that cares to actually comply they will. I luckily work somewhere where it's taken seriously.

But it's shockingly easy not to and auditors couldn't possibly catch all of the instances of non-compliance

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Re:FTX used corporate funds to purchase employee homes, new ... by TuringNYC on Thursday November 17, 2022 @03:36PM (#33645288)

>> But it's shockingly easy not to and auditors couldn't possibly catch all of the instances of non-compliance

Regulations are usually backwards looking. So at least we never get Enron/GlobalCrossing/etc again.

Then another waves of crises happen, and we get new regulations.

So Fannie/Freddie happened in 2004-2007 and we got brightline guidance and application of FAS91 and EITF-9920.

So then AIG/Lehman/Bear happened in 2007/2008 and we got Dodd Frank. Again backwards looking but we end up in a better place.

The regulation stacks upon regulation, but I think this is good.

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Re:FTX used corporate funds to purchase employee homes, new ... by oblio on Thursday November 17, 2022 @04:17PM (#33645864)

> The regulation stacks upon regulation, but I think this is good.

The correct way to think about it is scammers versus law makers.

Scammers are both trying to scam and also to blend in.

So it's hard at first to draw lines.

Them the lines burst onto the scene, when scammers become obvious.

So law makers write that up, and scammers have to find something new.

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Re:FTX used corporate funds to purchase employee homes, new ... by datavirtue on Thursday November 17, 2022 @03:33PM (#33645258)

The banking, finance, and corporate accounting world and their practices would shock most devs to the core. Most people just assume that certain controls are being enacted with precision. Things like: customer account reconciliation, bank account reconciliation, etc.

Most of the time people just aggregate values and never inspect the detail. They record those aggregates in the GL and move on. I have never seen granular recon. That is why embezzlement is only discovered by accident years later.

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Re:FTX used corporate funds to purchase employee homes, new ... by andrekandre on Thursday November 17, 2022 @06:13PM (#33647312)

  > They record those aggregates in the GL and move on.

 what is gl?

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Re:FTX used corporate funds to purchase employee homes, new ... by c22 on Thursday November 17, 2022 @07:00PM (#33647801)

Perhaps general ledger?

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Re:FTX used corporate funds to purchase employee homes, new ... by zevra on Thursday November 17, 2022 @07:23PM (#33648028)

general ledger?

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Re:FTX used corporate funds to purchase employee homes, new ... by CharlieDigital on Thursday November 17, 2022 @04:26PM (#33645977)

I never look at laws and regulations as prevention just like a 55MPH speed limit sign or "Drug Free School Zone" doesn't prevent people from breaking said regulations.

It just means that GIVEN that there is a law, WHEN it is found to be broken, there are DEFINED rules of accountability and punishment.

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