Eh, I still agree with Ben here. He said they are the worst financial documents he has ever seen, including Enron. And given he’s the guy who steered Enron after bankruptcy, that’s a concrete claim. And as the documents will surely all be submitted, he’d be putting his neck on the line to say such things if it weren’t clearly like the most egregious thing you could imagine. shrugs :/
There are a lot of degrees of freedom in “worst”. I’m not that familiar with Enron’s accounting, but my impression is their finances were careful and relatively normal looking, just intentionally over-complex and with ‘aggressive’ choices that made things look much better than they actually were? So if you think sloppiness is a very serious issue in this business (a sensible position to hold!) then you might not need very much before the state of documentation can be ‘worse’ than Enron?
Yeah, turns out there was not only sloppiness here though. Like Enron, things were labelled to look much better than they really were. Like, stocks of coins held in such volumes and accounted as their current exchange price such that it looked like billions in net worth, IIRC, but of course if they would have sold the coins, the value of the coins would have plummeted far before they got through their sale order, so there is no way they could have expected to gather that much USD for the coins they held. This might be normal for stocks valuation? But my impression from the tone is that it was handled differently/worse. Maybe there were other things too, tbh I didn’t look very closely. Plus there was SBF’s backdoor (that was real right?) and I’d bet other weird money movements I assume he has noticed by now.
Eh, I still agree with Ben here. He said they are the worst financial documents he has ever seen, including Enron. And given he’s the guy who steered Enron after bankruptcy, that’s a concrete claim. And as the documents will surely all be submitted, he’d be putting his neck on the line to say such things if it weren’t clearly like the most egregious thing you could imagine. shrugs :/
There are a lot of degrees of freedom in “worst”. I’m not that familiar with Enron’s accounting, but my impression is their finances were careful and relatively normal looking, just intentionally over-complex and with ‘aggressive’ choices that made things look much better than they actually were? So if you think sloppiness is a very serious issue in this business (a sensible position to hold!) then you might not need very much before the state of documentation can be ‘worse’ than Enron?
Yeah, turns out there was not only sloppiness here though. Like Enron, things were labelled to look much better than they really were. Like, stocks of coins held in such volumes and accounted as their current exchange price such that it looked like billions in net worth, IIRC, but of course if they would have sold the coins, the value of the coins would have plummeted far before they got through their sale order, so there is no way they could have expected to gather that much USD for the coins they held. This might be normal for stocks valuation? But my impression from the tone is that it was handled differently/worse. Maybe there were other things too, tbh I didn’t look very closely. Plus there was SBF’s backdoor (that was real right?) and I’d bet other weird money movements I assume he has noticed by now.