FTX Infinite Money Diagram | Accounting and Collapse Explained

In this video I cover the Accounting & Audit issues with FTX's Collapse
In a nutshell, FTX used its sister company Alameda in these illegal ways:
FTX lent Alameda its made-up crypto "FTT", which Alameda used to borrow money against (free money with a worthless collateral)!
Alameda was a major customer of FTX's FTT token, helping FTX prop up it's fair market value!!

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All views expressed on my channel are mine alone. Not intended as financial or professional advice

[Brooks]

I would love more coverage of live events like this. Good video!

[WIZCO]

I always find these topics interesting. Thanks for making a video covering it!

[victoriousjay]

I like the way you visually teach things and apply it to real world accounting and audit scenarios. Taking courses online and this is lacking with just doing discussion boards and quizzes.

[rodctenis]

Great video. A key point in this scheme is the fact that there were people lending money against FTT. The infinite money comes from there. Clear negligence if not stupidity. Regarding auditors, it is a topic for a full series of videos and not only for this case. Auditors have been at the center of several scandals over the years, but nobody is willing to touch the status-quo.

[JCChavz]

Great video. I have an accounting degree but left the industry a years ago, this definitely got the juices flowing again. Keep up the great work.

[GENIUSAA]

More to come on this. Will probably need a follow-up down the road. So fascinating.

[n.bcritical]

been waiting for this, an actual expert's explanation

[seren]

I love your videos and how you explain accounting and finance!

[xLumixx]

FTX lending FTT to Alameda and Alameda was using the lended FTT as a colleteral to borrow money, right? But which institution accepted worthless FTT as a colleteral?

[reeseanderson]

Awesome video!!!! To be fair to the valuation of FTT though, wouldn't Binance have provided a large (assuming multiple) arm's length transaction for the valuation?

[sunriseeternity]

Thank you for content #ftx #bankruptcy #Finance #banking #enjoylife

[mubarikkhadar]

What's incredibly to me is an audit company expressing it's enthusiasm on public and not see that as a risk of the imperiality of their opinion.

[omarcombet]

Excellent breakdown of the issue. I wonder what role their VC firms had in all of this. FTX's last round was early 2022 and I imagine this funny business had been going on by then. Why didn't the VC firms catch this in the Due Dilligence phase? Maybe I'm missing something here, but seems that these firms must have been aware of some strangeness at the very least. Maybe its another example of VC's blinded by the prospect of having found a unicorn and overlooking red flags?

[dianaverano]

Still having 2 companies interconnected with its finances is a disaster.

Ftx should have its finances independent with Alameda.

Monthly company sales report, external audit, monthly update to its investors is old school but never goes out of style.

[tarunj]

Great information, thank you for sharing!

[reng]

Can you explain the full accounting treatment for SaaS companies(Deferr revenue, actual revenue, AP taxes, Etc).

[wandaraeadams]

Hi Bill! I just found your channel and the information is just what I need right now. I was in accounting for 12 years at a major retail company. I worked my way up from accounting assistant to Sr Staff Accountant (9 years). I left to be home with my son and worked as a realtor. I worked as a realtor for 9 years because my son was diagnosed with autism and I needed a flexible schedule for his therapy appointments. Now I want to get back into accounting working remotely. What would your recommendations be to help get back into accounting? Should I start at the entry-level? Are there certain companies I should apply to and/or avoid? Your advice is much appreciated!

[GENIUSAA]

I wonder if the auditor(s) were paid in crypto?

[devarcooper]

In this case how would this affect Prager Metis now and in the future

[Rebeker]

sounds a lot like the FED and congress do or it's just my conspirationation?