The Company Had No Cash Management System
For most companies, a money management system is a pretty typical thing to have. They’re useful for tracking corporate cash flows—helping record the details for everybody the company is paying, how much it’s paying them, when, why—that sort of thing. According to FTX’s bankruptcy filing, however, the company just really did not try to do any of that stuff. I guess when you have an ungodly amount of money the attitude might be, ehhhh, do we really need to write all this down? The bankruptcy filing reads:
The FTX Group did not maintain centralized control of its cash. Cash management procedural failures included the absence of an accurate list of bank accounts and account signatories, as well as insufficient attention to the creditworthiness of banking partners…
Nice!
