The attestation of embattled stablecoin TrueUSD’s Proof of Reserves was performed by the same team that once worked with Sam Bankman-Fried on the books for FTX.US.
As CoinDesk reported in March, The Network Firm was born out of accounting firm Armanino’s digital-asset practice.
Armanino stopped conducting crypto audits last year, underscoring the increasing difficulty for crypto firms to secure audits and reserve attestations from prominent accounting firms, with Mazars also halting proof-of-reserves work for crypto clients.
FTX was criticized for its lack of internal controls, with John Ray III, its new CEO appointed for bankruptcy proceedings, saying it “did not keep appropriate books and records or security controls”
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said in a November court filing.
Armanino’s audit for 2021 did not provide an opinion on the FTX.US or FTX Trading internal controls over accounting and financial reporting.
CoinDesk previously reported that in 2019, the Public Company Accounting Oversight Board highlighted deficiencies in Armanino’s…
