Good morning. FTX’s failures are rooted in “hubris, incompetence, and greed,” the crypto exchange’s new management team said in a report outlining scathing details about the lack of financial controls and record-keeping under founder Sam Bankman-Fried.

• What the report says: Mr. Bankman-Fried’s crypto hedge fund Alameda Research often had difficulty understanding what its positions were, let alone hedging or accounting for them, the report said. The FTX founder in an internal communication described Alameda as “hilariously beyond any threshold of any auditor being able to even get partially through an audit.”
• A lack of internal controls: At FTX Group, expenses and invoices were submitted on Slack and were approved by emoji. These informal, ephemeral messaging systems were used to approve transfers in the tens of millions of dollars, leaving only informal records of such transfers, or no records at all.
• Key decision-makers: The report reiterates that most decision making sat with Mr. Bankman-Fried; Nishad Singh who was director of engineering at FTX; and Gary Wang, the firm’s former chief technology officer. One executive remarked that if Messrs. Singh or Wang got hit by a bus, “the whole company would be done.” 

The WSJ Risk & Compliance Forum on May 9 will feature speakers including Assistant Attorney General Kenneth Polite Jr., Assistant Secretary for Export Enforcement Matthew Axelrod, Elizabeth Atlee, chief ethics & compliance officer at CBRE, and Sidney Majalya, chief risk officer at Binance.US. You can register here.

Goldman Sachs to pay $15 million to settle swaps business probe. 

Goldman Sachs Group Inc. agreed Monday to pay $15 million to settle regulatory claims that it obscured the cost of derivatives that clients purchased to bet on or against an index of overseas stocks.

The Commodity Futures Trading Commission said Monday that Goldman in 2015 and 2016 didn’t tell clients that it priced swaps in a way that put them in a disadvantageous position. The swaps contracts were tied to an index of stocks from Japan, Europe, Hong Kong, Singapore, New Zealand and Australia, the CFTC said.

Social-media platform Discord emerges at center of classified U.S. documents leak.

A federal investigation into a major leak of highly classified U.S. documents has cast a spotlight on a social-media outlet popularized by videogame enthusiasts.

On Discord Inc.’s online platform, users chat about games, investing and other topics in mostly private, invitation-only groups called servers. Like others in social media, the company has at times struggled to rein in bad actors. 

Discord has been accused of being used to share child pornography and playing a role in the Charlottesville, Va., violence in 2017. The company said its highest priority is to ensure a safe experience for users and that it investigates and responds accordingly to any policy violations.

• Two lawmakers reported trades in bank stocks last month as they worked on government efforts to address fallout from two of the largest bank failures in American history.

Mothers power new drive to make social-media firms accountable for harms.

Silicon Valley has for years brushed back attempts to make internet platforms more accountable for harm to young people. Online safety advocates are hoping to turn the tide with a new force: Moms.

Mothers who say social media devastated their sons and daughters are stepping up efforts to pass legislative remedies, including by making personal appeals to lawmakers and working with congressional aides to fine-tune legislation.

The power of the lobby of mothers was demonstrated in November, when about 10 women walked into Sen. Maria Cantwell’s (D., Wash.) office, demanding to know why they hadn’t been able to secure a meeting with the chair of the Senate Commerce Committee.

A little-known stablecoin gets big help from world’s largest crypto exchange.

The market value of a little-known digital token doubled in a month after the world’s largest cryptocurrency exchange, Binance, started to heavily promote the coin on the platform.

Binance removed spot bitcoin trading fees for TrueUSD in March, and the coin’s market value soared to $2.1 billion, an increase of about $1 billion, according to CoinMarketCap data. TrueUSD is currently the only stablecoin—a cryptocurrency pegged to the dollar—that Binance users can trade for bitcoin free.

Investors and analysts say Binance’s new move to diversify into TrueUSD, and potentially other stablecoins, makes sense due to stablecoin giant tether’s dominance on its platform.

• Three former Twitter Inc. executives sued the social-media company, seeking reimbursement for more than $1 million in legal expenses tied to a shareholder lawsuit and inquiries including from federal authorities.

• The WSJ’s Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of spying—charges the Journal and the U.S. government vehemently deny. Follow the latest coverage, sign up for an email alert, and learn how you can use social media to support Evan.
   
• The Pentagon is conducting an internal investigation of how purported secret documents detailing Ukraine war plans and intelligence on U.S. allies surfaced online in recent weeks, as the U.S. sought to soothe foreign governments whose countries were mentioned in the files.
   
• The Biden administration filed an emergency request Monday asking a federal appeals court to block a ruling that suspended approval of the abortion pill.
   
• Tax changes, regulatory enforcement and government policy shifts are posing a greater threat to corporate profits than they did a decade ago, according to a new study from the U.S. Chamber of Commerce.
   
• China’s military wrapped up three days of exercises around Taiwan, including a swarm of jet fighters launched from one of its aircraft carriers.
   
• A gunman killed five people and wounded eight others after opening fire at a bank in Louisville, Ky., Monday morning, officials said.
   
• A strong volcanic eruption in Russia’s Far East covered nearby towns and villages in ash early Tuesday, authorities said, with aviation officials warning of possible impacts for international air travel.