GM, this is The Crypto Explorer, the spiciest newsletter in crypto town, we're so hot, even our writers are sweating!

But hey, we ain't complaining.

Here’s what we got for you today:

• 😳 8 shocking findings about FTX!

• 🧱 Around the block: Coinbase loses a Key member of their team

😳 8 Shocking Findings About FTX!

FTX's new management, led by CEO John Ray III, has released an interim report, and let's just say, it's not looking good.

The report discloses various findings about the company's inner workings, revealing practices that indicated it was ill-equipped to deal with large amounts of customer funds.

Here are some key takeaways from the report:

• The exchange's former CEO, Sam Bankman-Fried, disregarded advice to improve FTX's internal controls. (Even the wisest of men has advisors, come on SBF! 🙄).

• Key personnel, such as Nishad Singh(co-lead engineer) and Gary Wang (co-founder), had limited experience in risk management or running a business but controlled "nearly every significant aspect" of FTX.

• Most decisions were taken by executive-level employees, even if other employees were hired to do the same job. Regular employees had little to no decision-making power.

• It seems like FTX was being run like a group project in college where one person does all the work and everyone else just shows up to the presentation.

• The report also detailed that certain employees had unrestricted power over transfers of fiat money and cryptocurrency, and making hiring or firing decisions. (Alameda, which was given “extraordinary privileges,” routinely transferred funds to insiders for personal investment, political contributions, and other expenses marked as personal loans).

• FTX US President Brett Harrison resigned due to disagreements with Bankman-Fried and Singh over the unorganized delegation of authority, management structure, and key hires at the company.

• The report also revealed that FTX lacked an internal audit function and important subdivisions, such as financial risk, audit, or treasury departments, while relying on QuickBooks and a "hodgepodge" of Google documents, Slack, shared drives, and Excel to manage assets and liabilities.

• FTX failed to implement basic security controls to protect its networks despite handling significant funds. It didn’t enforce multi-factor authentication despite Bankman-Fried publicly stressing the importance of two-factor authentication.

The report indicates the depth of the issues within the company, you can read the full report here.

Sam Bankman-Fried currently facing 12 criminal charges and is awaiting trial in October.

 🧱 Around The Block: Coinbase Loses a Key Member

• 🆕 MetaMask's new feature: The new feature allows users to purchase crypto using fiat payment methods, such as debit or credit cards, PayPal, bank transfers, and instant ACH.

• 🏦 Gemini gets $100M: Winklevoss twins infuse Gemini with a $100M personal loan.

• 🥺 Coinbase loses a key member: Coinbase's head of exchange departs and plans to start a new crypto project

• 💸 FTX Lawyers: FTX’s bankruptcy lawyers and advisers pocket $32.5M in February

That's all we have for today.

We'd love your feedback.

In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.