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| less than a minute read

Hunting for needles....

An interesting comment during this case. I tend to assume that eliminating an evidence trail is likely to be pretty difficult given the abundancy of data being generated these days. One may think a lid is being kept on things, but there's just no accounting for the actions of those around you…..(the FT's article later refers to “a secret recording one employee made of an Alameda staff meeting”).

Of course, this pleases me as a corporate forensic accountant. We continue to incorporate and reconcile increasingly broad sources of data into our investigations. There is a particular focus at the moment on the significant growth of short form messaging by employees (WhatsApp, WeChat, Teams, Google Chat, etc.). In the FTX case, the FT also reported that Ellison communicated with Bankman-Fried "on Signal or through memos in Google Docs”. Often, all it takes is for one needle to be found which then helps to unpick the story, but you don't quite know where that needle might pop up…..

Nevertheless, Ellison said Bankman-Fried lectured his staff on the need to be “careful” about what records they left of “sensitive” discussions. “He said that putting things in writing was one of the primary ways that financial firms get in legal trouble.”