FTX Infinite Money Diagram | Accounting and Collapse Explained

YouTube video

In this video I cover the Accounting & Audit issues with FTX’s Collapse
In a nutshell, FTX used its sister company Alameda in these illegal ways:
FTX lent Alameda its made-up crypto “FTT”, which Alameda used to borrow money against (free money with a worthless collateral)!
Alameda was a major customer of FTX’s FTT token, helping FTX prop up it’s fair market value!!

Get 30% discount on the Controller Academy:
(link includes discount, but the promo code is ‘30offcourse’)

My Fraud Playlist:

Join me on Patreon and ask me your questions:

My other best selling courses:
🔥Take 30% off when you enroll in my online course “Night Before the Accounting Interview Guide” including All Levels Q&A🔥:

📈Get My “Controller KPI Dashboard” (Excel + Course) with the most important P&L and Balance Sheet KPIs:

Hang Out with me on social media:
📸 https://www.instagram.com/the_financial_controller/

DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!
All views expressed on my channel are mine alone. Not intended as financial or professional advice


ArabicChinese (Simplified)DutchEnglishFrenchGermanIndonesianItalianJapanesePortugueseRussianSpanishTurkish

Related Articles


  1. "Develop success from failures. Discouragement and failure are two of the surest stepping stones to success." –Dale Carnegie

  2. FTX lending FTT to Alameda and Alameda was using the lended FTT as a colleteral to borrow money, right? But which institution accepted worthless FTT as a colleteral?

  3. Can you explain the full accounting treatment for SaaS companies(Deferr revenue, actual revenue, AP taxes,Etc).

  4. I like the way you visually teach things and apply it to real world accounting and audit scenarios. Taking courses online and this is lacking with just doing discussion boards and quizzes.

  5. Awesome video!!!! To be fair to the valuation of FTT though, wouldn't Binance have provided a large (assuming multiple) arm's length transaction for the valuation?

  6. FTX borrowing against FTT is no different from the airlines borrowing against their sky miles programs. Made up, arbitrary value used as collateral.

Back to top button