When John J. Ray the Third took control of FTX in November 2022, he told the bankruptcy court he had never seen "such a complete failure of corporate controls." Expense requests were approved with emojis, there was no accurate list of bank accounts, and yet the company had clean audit opinions from two firms. This case file walks through FTX the way an auditor would: the related-party tie to Alameda Research, the missing daily reconciliations, the secret exemption from auto-liquidation, what the bankruptcy examiner found about the audits, and what the courts have decided so far, including the 25-year sentence the Second Circuit affirmed and the petition now pending at the Supreme Court.

Allegations are attributed to the agencies and officials that made them. General information, not financial advice.

Sources: Declaration of John J. Ray III, Doc 24, Case 22-11068 (D. Del., 17 Nov 2022). United States v. Bankman-Fried, No. 24-961 (2d Cir., 12 Jun 2026). Report of Examiner Robert J. Cleary, Doc 15545 (D. Del., 23 May 2024). USAO-SDNY press releases (22 Dec 2022; 2 Nov 2023). DOJ Office of Public Affairs press release (28 Mar 2024). SEC press releases 2022-219 and 2024-133. CFTC press releases 8638-22 and 8669-23. U.S. Supreme Court docket No. 26-349. Armanino LLP Preliminary Report, MDL 3076 (S.D. Fla.). Wirecard AG management board statement (22 Jun 2020).

Narrated with a synthetic AI voice; researched and fact-checked from public records.

In October 2001, Enron's audit firm was shredding documents. Less than five years later, a jury convicted Enron's former CEO on nineteen counts, five of them for lying to auditors. This case file walks through Enron the way an auditor would: mark-to-market profits, the CFO's own partnerships, the Nigerian barge deal, and the independence problem at Arthur Andersen. Then it follows what the courts found, including the Andersen conviction that the Supreme Court reversed after the firm had already collapsed.Allegations are attributed to the agencies that made them. General information, not financial advice.Sources: U.S. Department of Justice press releases on the Lay and Skilling verdict (25 May 2006), the Fastow guilty plea (14 Jan 2004), the Fastow sentencing (26 Sep 2006) and the Skilling resentencing (21 Jun 2013). SEC complaint, SEC v. Andrew S. Fastow, and SEC Litigation Release No. 17762. U.S. Court of Appeals, Fifth Circuit: United States v. Arthur Andersen LLP (2004) and United States v. Brown, 459 F.3d 509 (2006). Arthur Andersen LLP v. United States, 544 U.S. 696 (2005). United States v. Lay, Memorandum Opinion and Order (S.D. Tex., 17 Oct 2006). Enron Q3 2001 earnings release (16 Oct 2001) and Forms 8-K (8 Nov and 2 Dec 2001). Powers Report, Enron Special Investigative Committee (1 Feb 2002). Congressional Research Service Report RS21120 (3 Sep 2002). CNBC, "Biggest Chapter 11 Cases" (BankruptcyData.com). The New York Times and the Associated Press.Narrated with a synthetic AI voice; researched and fact-checked from public records.