Sam Bankman-Fried’s Written Testimony Notes Dec 12, 2022, is part of . SBF was scheduled to testify before Congress a day before his on Dec 12, 2022 in the Bahamas. So, these are the notes that he would have presented in front of Congress that we never actually got to hear. You can jump to any part . HackerNoon’s Legal PDF Series arrest here This is part 4 of 11. Feature Image: HackerNoon’s Midjourney AI, prompt “historical accounting quirks” What went wrong Alameda Research became insolvent when the economic environment changed (see ) here Failures of FTX’s internal controls FTX’s Dashboard: FTX’s dashboard for user positions did not display Alameda’s full position size on the platform, because of a historical accounting quirk. I now believe that Alameda’s position was over twice as large as what was displayed. My periodic assessments of the riskiness of our positions were often based on the dashboard’s numbers. Financials: FTX had annual audited GAAP financial statements, which to my knowledge were generally correct However, those were merely for FTX’s corporate financial state, not an audit of customer risk. Risk management: While FTX International had a team dedicated to financials, and to many other areas of the business, it did not have a team dedicated to risk management, or to user position monitoring I, as CEO, did not put adequate effort into monitoring risk on FTX Continue Reading Here

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SBF explained FTX's failure to display Alameda's positions on its dashboard as an 'accounting quirk'

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SBF explained FTX's failure to display Alameda's positions on its dashboard as an 'accounting quirk'

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Sam Bankman-Fried

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