Is National CPA Firm Armanino, LLP the New Arthur Andersen After Representing FTX?

Is Nationwide CPA agency Armanino, LLP the New Arthur Andersen?

Visitor Publish by Bob Bishop

In the course of the 2008 Nice Monetary Disaster, the poster little one for fraud was Bernie Madoff, who precipitated an estimated $65 billion in losses over 4 a long time.  A key think about finishing up the Ponzi rip-off was CPA David Friehling.  He rubber-stamped audits that signed off that the monetary info Madoff and his firm have been offering was appropriate.  In 2009, Friehling plead responsible to securities and funding adviser fraud.

Armanino’s Novel Accounting Providers

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Armanino, LLP is the twenty-first largest CPA agency, in line with AccountingToday.  The agency was named within the FTX chapter submitting because the auditor of the FTX.US for its December 31, 2021 financials.  Apparently, the undisclosed audited monetary statements had a clear invoice of monetary well being.  Nevertheless, the 2021 tax return had a $3.7 billion loss; in different phrases, FTX was bankrupt and will solely survive if it attracted new Ponzi buyers.

The court-appointed New FTX CEO, John Ray, has a long time of expertise restructuring and liquidating bankrupt corporations, together with Enron.  His chapter submitting discovered the FTX conglomerate (102 entities) lacked monetary controls and governance.  This offered the chance, incentive, and rationalization for the historic FTX fraud; audit crimson flags.  The submitting (obtain right here) said that the stakeholders or the Court docket can’t depend on the audited monetary statements.  Armanino rubber-stamped FTX.US’s monetary statements like Madoff’s CPA. 

Armanino digs the outlet deeper

The agency has created the first-of-its-kind software program software referred to as TrustExplorer, which it asserts to be an unbiased accountant report in actual time for cryptocurrency buyers.  In line with its web site, crypto exchanges like FTX rent Armanino to carry out agreed-upon audit procedures, which it loosely calls auditing requirements.

The agency makes use of an software programming interface (API) that interfaces with the change’s cloud database, digital asset exchanges, and lending platforms to calculate the belongings and the change’s depositor liabilities to reach on the USD-equivalent worth of web belongings.  Theoretically, if web belongings are better, the coin change has reserves and is solvent.

TrustExplorer software program generates real-time dashboards for contracted exchanges calculating the market worth of belongings, liabilities, and web belongings utilized by the general public.  Additionally, the software program points an unbiased accountant’s report, an opaque info report.  Contracted digital exchanges use the software program to seduce digital buyers giving the impression that it’s independently audited.

For instance, Gateway Pundit readers can obtain the on-demand dashboard and auditor’s report for Nexo change HERE, suggesting web belongings are $2.6 billion.  Nevertheless, the web is buzzing that Nexo is the subsequent change to fail, which behaves like a extremely leveraged hedge fund.  Nexo’s value has declined 39% within the final month.  Armanino’s TrustExplorer is commercialized affirmation bias.   

“A idiot and his cash are quickly parted”

There are over 12,000 Cryptocurrencies, all minted with the creator’s click on of a mouse and haven’t any intrinsic worth, and are exchanged for {dollars}. Creators maintain a majority of cash of their wallets. As public buyers speculators drive up the value in a frenzy (i.e., Dogecoin), the creators’ dump their unissued cash in a rug pull.

Speculators who maintain their cryptocurrency on an change don’t have the suitable to regulate their belongings.  Any cryptocurrency saved on that change is stolen if the change is hacked.  Additionally, creators like FTX’s Sam Bankman-Fried can hypothecate clients’ holdings in associated social gathering scams inflicting catastrophic losses.  Politicians are actually calling for cryptocurrencies to be regulated to guard the fools.  Nevertheless, the general public speculators will in the end abandon the mania-like 70’s pet rock craze.

Bob Bishop is a forensic investigator who held a CPA license for over 30 years. His social media accounts are – YouTube, Twitter, and Linkedin

See additionally Bob’s work on the Clinton Basis under:

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