2022-11-24 22:05:18

Why due diligence by investors can still fail to uncover red flags, corporate governance issues

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Channel NewsAsia
By Davina Tham

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SINGAPORE: Up until the moment that FTX started collapsing, the consensus view was that everything was generally fine with the crypto exchange, withformer CEO Sam Bankman-Fried a star of the corporate world.

That all changed earlier this month, with a chain of events which culminated on Nov 11 when FTX started bankruptcy proceedings in the United States, owing its 50 biggest creditors nearly US$3.1 billion (S$4.28 billion).

Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here, said new FTX CEO John Ray, hired to oversee the firm's bankruptcy after Mr Bankman-Fried's resignation.

From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.

Continue read on channelnewsasia.com

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