Operating at the Intersection of Technology and the Capital Markets
Tag: fraud
I'm thinking of the venture capital community today as SVB Financial goes down for the count. I feel bad for the bank's employees, but could not care less about the bank's clients - the venture capital community at large. How did the FTX fraud come to be? There were two key components to the FTX … Continue reading Fraud Preys On A Lack of Due Diligence
We plan to publish content on companies we believe are fraudulent. We will focus on small-cap companies as it is easier to move the needle there versus mid-cap and large-cap companies. Case in point, when we did work on Cintas (CTAS) in 2017 nobody seemed to care that Cintas regularly overbilled customers to goose reported … Continue reading Corporate Fraud
They are rolling over at FTX. Sam Bankrun-Fraud gets to stay at his parents' house (what did they know?), for the time being, but with his co-founders rolling over and admitting guilt in the FTX fraud, I can't imagine Bankrun-Fraud not being locked up for the rest of his life. The real question is will … Continue reading Crypto Crumbles
...Not even for Sam Bankrun Fraud. Good to see that Sam Bankrun Fraud was arrested tonight around 6pm ET at his residence in the Bahamas. The U.S. Attorney for the Southern District of New York will unseal the indictment on Tuesday morning. You leave yourself exposed to fraud when you pass on due diligence. Fraud … Continue reading Fraud Usually Does Not Pay…
50/50 odds on Bankrun-Fraud's freedom. 40/60 odds on his long-term survival. Corzine got away with it. Will Bankrun-Fraud? Former Goldman Senior Partner Jon Corzine commingled funds at his hedge fund - MF Global - a decade ago losing $1.6 billion in customer funds (they were recovered), and got away with a slap on the wrist. … Continue reading 50/50 Odds On Bankrun-Fraud’s Freedom
Coinbase (COIN), is a walking bankruptcy absent an immediate, dramatic recovery in Retail customer sentiment. The probability of an imminent resurgence in Retail enthusiasm for Crypto is close to zero given 2022's various Crypto failures including the recent FTX fraud (FTX founder Sam Bankrun Fraud needs to be arrested ASAP). It hardly bodes well for … Continue reading Coinbase Is A Bankruptcy Waiting To Happen
Why the venture community invested in kids running crypto exchanges is beyond me. If the venture firms that put money into FTX did an ounce of due diligence they would have passed on the deal. Did anyone ask to confirm bank deposits and customer reserves? Did anyone ask about customer trading records and associated reporting … Continue reading Investor Due Diligence. You Get What You Deserve.
Here is our follow-up to our recent article Facebook Will Be Next. We have stated on a number of occasions that social media companies such as Meta/Facebook and Twitter overstate the number of active users given that the active user metric is a self-reported figure and given that no outside firm has the ability to … Continue reading Facebook and The Blockchain
With the Biden's Administration's forthcoming $1.9 Trillion in transfer payments will come a tidal wave of personal data theft & fraud. We experienced this once already with the Trump transfer payments of 2020. A Public-Private Partnership ("PPP"), that invests in Technology infrastructure across key industries would do much to mitigate these risks while bolstering the … Continue reading A Tidal Wave of Personal Data Theft & Fraud Is Coming This Year
On February 18th the House Financial Services Committee will hold a virtual hearing related to the GameStop (GME) fiasco. "Accountability" in a word is how the SEC may act to restore integrity to the capital markets. Jail time for scammers: Should you decide it is a good idea to execute a pump and dump scheme … Continue reading How To Restore Integrity To The Capital Markets
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