Tuesday, 23 July 2019

ENRON ON THE BLOCKCHAIN?

The Wall Street Journal (WSJ) has suggested that Jeffrey Skilling, the former CEO of the bankrupt Enron Corporation, is considering launching another energy venture but this time on a digital platform following meetings with “…individuals who specialise in cryptocurrency, blockchain and software development.”

Just weeks after his release from more than 12 years of federal custody for convictions of fraud, conspiracy and insider trading, Skilling has also reportedly met with other former Enron executives with a view to raising funds for another foray into the oil and gas markets.

Largest Corporate Bankruptcy in U.S. History

Enron was a high profile Houston-based energy conglomerate that imploded within a short timespan leaving shareholders nursing heavy losses – the stock price fell from a high of over $90 in mid-2000 to less than 50 cents by November 2001.

By exploiting accounting loopholes Enron had managed to hide failed deals and projects that had resulted in the firm accruing billions of dollars in debt.

With an official count of $63.4 billion of assets, Enron was the largest corporate bankruptcy in U.S. history, although that unwelcome accolade was soon to be passed onto WorldCom when they collapsed the following year.

The demise of Enron and the resulting legal fallout also engulfed the company’s auditors, Arthur Anderson, who at the time were one the five biggest accountancy firms in the world.

A former prosecutor at the U.S Department of Justice, Peter Henning, is quoted by the WSJ as saying that Mr Skilling using an energy-focused digital platform could appeal to investors as “It’s an area without a long memory, and in the cryptocurrency space no-one is going to care too much about Enron.“


source: icoexaminer.com
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