Don't really know.
Maybe the auditors should have found/revealed the link between Alameda and FTX? Or provided some sort of "caution/opinion"? I suspect the auditors essentially turned a blind eye to peculiar items for their fee.
8 Days in November: What Led to FTX’s Sudden Collapse
Quote:
Facts first uncovered by CoinDesk played a major role in the events of the past week. On Nov. 2, reporter Ian Allison published findings that roughly $5.8 billion out of $14.6 billion of assets on the balance sheet at Alameda Research, based on then-current valuations, were linked to FTX’s exchange token, FTT.
This finding, based on leaked internal documents, was explosive because of the very close relationship between Alameda and FTX. Both were founded by Bankman-Fried, and there has been significant anxiety about the extent and nature of their fraternal dealings. The FTT token was essentially created from thin air by FTX, inviting questions about the real-world, open-market value of FTT tokens held in reserve by affiliated entities.
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The story apparently led to a "run on the bank"
Quote:
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But sometimes straightforward facts are enough to trigger an entirely justified bank run. Seemingly because of their known close ties, worries about Alameda’s balance sheet translated into a rapidly accelerating mass exodus from FTX. The exchange saw $6 billion in withdrawals in the 72 hours before things reached a head on the morning of Nov. 8, according to internal messages seen by Reuters.
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