Reminds me of working for MCI-Worldcom. When you think you’re working for crooks, you probably are. Run away.
As others mentioned, unexplainable business models or money coming out of nowhere are major red flags. A few others to look out for if you are applying for a job:
1. Few or no internal controls. A medium-size or larger company not having a CFO is particularly questionable.
2. People in high positions, including the CEO, lack qualifications or experience. Often the CEO will hire inexperienced or incompetent people for high-level positions because they a) won't figure out what is going on or b) can figure it out, but are too grateful for the position to say anything. Or maybe the CEO never finished college in a field where everyone has a PhD (think Elizabeth Holmes).
3. History of experienced / qualified people joining the company and leaving soon after
4. Seemingly unexplained success.
5. Extravagant spending and inappropriate workplace behavior.
6. Cult of loyalty to the CEO and/or a "circle" around this person, including close interpersonal relationships.
I just had a meeting for a Job. Flags 2 and 4 were there already. Unclear business model. I have a PhD. While this does not make me necessarily smart, I have an insight and understanding of many industries. If I don't understand you business in a few sentences, you are either a fraud or are much much smarter than me.
I give you a few more red flags, but remember, this are red flags, not proof of fraud.
1. Operating over many jurisdictions.
2. Opaque payments/salaries. Either to good to be true or commission based.
3. People who don't understand numbers and often are off by a magnitude. The stock is worth 5 bucks, could go up 200 times and then ist 10k per stock. Company is worth now X billion, could be 200 times more. 200 times? We are taking market capitalization of the biggest players here, is this even possible for this specific industry?
4. Mentioning big names. Studied at MIT etc. (but very likely did not) Or for low lever frauds, build trust by assigning with law enforcement. (My farther works for the police, is a judge etc.)
5. If you know an industry you know the stuff, you know the numbers and you are never caught off guard by a question.
The pipeline into our collective understanding of tech is now:
scifi hype pitch -> VC flood of investment -> press releases across world -> governments worry -> disappointing IPO -> malpractice -> one or more execs arrested/sacked -> media elite across world convinced new invention will destroy the world
uber creates a taxi service, amazon an online mall, openai a ghost writer -- and we're all subject to an industry of VC hype men desperately trying to get those multiples above 20x by assaulting the popular consciousness with delusional BS
Really shows how he did it using the steps detailed above.
https://www.netflix.com/title/81466159?preventIntent=true
The Wolf of wall street film also shows the same pattern.
But really, anything to do with crypto or NFTs should be a red flag at this point.
If your gut says they might be criminals, they are probably criminals.
>> Worked in crypto and I got that vibe so left. Regret it. For every SBF there are hundreds who get away with it. Tons of talentless crypto millionaires still roaming free. Look at the Axie Infinite guys plundering a whole country. Token could collapse, but there’ll be no justice and they’re sitting on at least 8 figures individually
my understanding of this comment:
They worked in crypto, got the feeling they may have been working for crooks, so left and regret being part of it at all. They are upset that many scammers who made millions are still walking around and will face no justice.
vs what I think is a total misreading:
> Wait. Do you regret leaving? Because the fraud works out for some?
There are loads of people who successfully made millions and won't face justice, and they regret leaving before making similar money.
It worked great until regulators disallowed the Sprint purchase because it would have put too much of the long-distance market in one company. (And as we all know, we stress a lot about choosing our long-distance carrier these days.)
Then all of the somewhat shady side-deals became concerning, as WCOM was no longer growing like it was. Then people started looking more closely at the financials. Then it all went kerflooey.
It was ahead of its time because it's not that different from tech companies today, only replace business growth with user growth. Profits? Ha ha ha, don't be silly.