FTX
Crypto Exchange · Collapsed Nov 2022
Case Summary
FTX raised $1.8B and became one of the largest crypto exchanges. Corporate governance was essentially non-existent — no independent board, no CFO for extended periods, audits by an unknown firm. When CoinDesk reported the Alameda balance sheet, collapse took 10 days.
Peak Signal Scores
Company Filings
10News & Events
8Funding
7Market Position
6Sentiment
5Workforce
4Signal Timeline
No independent board members. CFO role vacant.
Annual audit conducted by an unknown 5-person accounting firm.
Crypto market downturn. Competitor exchange failures begin.
FTX begins emergency investments in failing competitors — signs of contagion exposure.
CoinDesk reports Alameda balance sheet concerns.
FTX files for bankruptcy within 10 days of CoinDesk report.
What ERR Would Have Shown
By mid-2022, FTX’s corporate governance signals were anomalous. No independent board. No CFO for extended periods. Audits conducted by an unknown 5-person firm. When CoinDesk reported the Alameda balance sheet concerns in November, the collapse took only 10 days — but the governance red flags were visible for at least 6 months prior. ERR’s Company Filings dimension would have flagged the audit anomaly alone.
Current Portfolio Matches
No current portfolio companies match this pattern.