Why would it? FTX wasn’t playing by existing US regulations anyway.
Even the most basic regulations would have squashed FTX’s entire fraud from the start. They weren’t bothering to play by any rules because they knew they could get away with it.
Which require compliance with them. If you work at a company that cares to actually comply they will. I luckily work somewhere where it's taken seriously.
But it's shockingly easy not to and auditors couldn't possibly catch all of the instances of non-compliance
I never look at laws and regulations as prevention just like a 55MPH speed limit sign or "Drug Free School Zone" doesn't prevent people from breaking said regulations.
It just means that GIVEN that there is a law, WHEN it is found to be broken, there are DEFINED rules of accountability and punishment.
The banking, finance, and corporate accounting world and their practices would shock most devs to the core. Most people just assume that certain controls are being enacted with precision. Things like: customer account reconciliation, bank account reconciliation, etc.
Most of the time people just aggregate values and never inspect the detail. They record those aggregates in the GL and move on. I have never seen granular recon. That is why embezzlement is only discovered by accident years later.
I really doubt it - it was just a dumb unregulated offshore startup doing a bunch of stuff that's already illegal. SOX wouldn’t help since FTX apparently didn’t have anything resembling audited financials vs Enron, a public company that abused GAAP to generate misleading financials. It would be a much different story if FTX had gone public or if they had a reputable audit firm vouching for them.
>> Serious prison time for the executives involved would probably be more effective.
Top executives, especially well-connected ones never get prison time. Instead, you usually have Indian/Chinese scapegoats or someone equally disliked.
The entire flash crash was blamed on a lone indian man living with his parents: https://www.bbc.com/news/explainers-51265169
Nevermind Citadel, 2Sigma, Jane Street, Goldman Sachs
The 2008 scandal fell upon an Arab man: https://en.wikipedia.org/wiki/Kareem_Serageldin
He is notable for being the only banker in the United States to be sentenced to jail time as a result of the financial crisis of 2007–2008, a conviction resulting from mismarking bond prices to hide losses.[1][2]
If I were this guy, i'd be really really worried about now:
Side note: If you work for a shady company, and you're the only colored guy on the exec team, you are probably there for a reason, and the reason isnt good.
Not surprising no. Tons of Western companies have fucked up, what with leaking AWS credentials, and leaking personal info online.
God forbid if an Indian company does it (see yesterday's post on Infosys), and all the previously suppressed hate (I still don't understand Europe's mind. Whether this hate is racial, or religious, or a mix) starts gushing out. You see this everywhere in the West (often to a greater extent outside the Anglosphere).
Even the reporting on India is the same - a PM who's not compromised to the Anglophone elites of India gets elected, and what do the "liberated, enlightened" cretins of the occident do ? Rush in to support their colonial garrison, regurgitating the same old tropes that were used to rape and plunder the "devil-worshipping heathens". You see this even with countries like Japan (god, these bitchy 'expats' are unbearable).
most of big beneficiaries of the Madoff scam e.g. Picower (found dead the the bottom of his pool) and including Madoff's children, were dead within a couple years after the collapse.
Even the most basic regulations would have squashed FTX’s entire fraud from the start. They weren’t bothering to play by any rules because they knew they could get away with it.