Bankruptcy

The FTX founder is accused by the U.S. Department of Justice (DOJ) of fraud, money laundering, and embezzlement. Now Sam Bankman-Fried is calling for the charges against him to be dropped.

Wirecard had commissioned the special audit when doubts about third-party transactions in Asia became known. The company collapsed in June 2020! Allegedly, the former Wirecard board led by Markus Braun had effectively blocked a special audit of the payment processor, according to auditor KPMG.

Her start-up Theranos promised a revolution in blood testing, but Elizabeth Holmes was convicted of being a fraud. Now she will probably have to serve her more than eleven-year prison sentence, although her appeal is still pending.

The deep fall of crypto exchange FTX is due to a mix of "hubris, incompetence, and greed," according to a new report from the bankruptcy trustee. The report sharply criticizes the chaos and lack of financial control and accounting mechanisms under founder Sam Bankman-Fried. Million-dollar expenditures were approved by Emoji.

The German subsidiary of the big four auditing firm EY must wait to undertake new audit mandates with public interest groups for two years. In addition, the state supervisory authority APAS imposed fined for EY and involved auditors.

Do Kwon, cofounder of the collapsed crypto scheme Terra-Luna, was charged with fraud by U.S. prosecutors shortly after local authorities arrested him in Montenegro. A grand jury in New York federal court charged Kwon with securities fraud, wire fraud and commodities fraud, the indictment shows. In February, the SEC already charged Do Kwon and Terraform Labs with fraud.

At the beginning of January, the Hamburg-based fintech Ruuky filed for insolvency. At the last minute, a buyer for the startup has been found. A press release said that a strategic investor wants to continue and expand the fintech, which has developed a banking app for young people.

It was a blow to the heart of the startup industry wit the potential to destroy thousands of startups and hundreds of VC funds: The sudden death of Silicon Valley Bank (SVB) and Signature Bank has sent shockwaves through the startup industry not just in the U.S., but around the world. Regulators in the U.S. and UK took action to prevent a super-GAU.

Germany's Federal Financial Supervisory Authority (BaFin) has established the compensation case for the clients of collapsed North Channel Bank. The bank is not able to repay its customers' deposits in full. The deposits of North Channel Bank's customers are protected under the Deposit Protection Act. The Bank is a member of the Entschädigungseinrichtung deutscher Banken GmbH (EdB).