Overview The story of FTX is another "open and shut" fraud case, this time taking place in the digital world. Completing this activity allows you to continue building your knowledge of how fraud is detected, how evidence is collected, how fraudsters are prosecuted, and how fraud affects those involved. Prepare Review the video, The Trial Against Same Bankman-Friend: How Did We Get Here? Read the following brief case overview: A federal grand jury in Manhattan returned an indictment charging Samuel Bankman-Fried, aka SBF, 30, of Stanford, California, with wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations. In March 2024, FTX co-founder and CEO Sam Bankman-Fried was convicted of 2 counts of wire fraud and five counts of conspiracy after his crypto empire collapsed, defrauding investors in his bankrupt crypto exchange. He was sentenced to 25 years in prison. Instructions In a 1-2 page (not including cover and reference pages) paper: Examine how the FTX fraud was dismantled. Provide supporting details such as people, actions, and dates involved. In your opinion, how could a financial forensic investigation have detected fraud in the organization? Explain evidence to support your opinion. First, assess the economic losses that occurred to investors, creditors, and other stakeholders. Then, recommend a plan of action for the company to restore economic losses to investors and creditors. Use 3 sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 7RQSC

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Overview

The story of FTX is another "open and shut" fraud case, this time taking place in the digital world. Completing this activity allows you to continue building your knowledge of how fraud is detected, how evidence is collected, how fraudsters are prosecuted, and how fraud affects those involved.

Prepare

Review the video, The Trial Against Same Bankman-Friend: How Did We Get Here?

Read the following brief case overview:

A federal grand jury in Manhattan returned an indictment charging Samuel Bankman-Fried, aka SBF, 30, of Stanford, California, with wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations.

In March 2024, FTX co-founder and CEO Sam Bankman-Fried was convicted of 2 counts of wire fraud and five counts of conspiracy after his crypto empire collapsed, defrauding investors in his bankrupt crypto exchange. He was sentenced to 25 years in prison.

Instructions

In a 1-2 page (not including cover and reference pages) paper:

Examine how the FTX fraud was dismantled. Provide supporting details such as people, actions, and dates involved.
In your opinion, how could a financial forensic investigation have detected fraud in the organization? Explain evidence to support your opinion.
First, assess the economic losses that occurred to investors, creditors, and other stakeholders. Then, recommend a plan of action for the company to restore economic losses to investors and creditors.
Use 3 sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment.

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