State’s top accountant under fire for $3.5B error, refuses to resign

Published

2 years ago

March 17, 2023

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close video South Carolina wants new residents ‘to pay their fair share’: Sen. Stephen Goldfinch

Sen. Stephen Goldfinch, R-S.C., says the state’s ‘Yankee Tax’ would help pay for necessary infrastructure to accommodate a rising number of new residents.

South Carolina lawmakers began efforts Thursday to fire Comptroller General Richard Eckstrom after a $3.5 billion accounting blunder. The move comes one day after Eckstrom was strongly advised to quit or be fired.

The 74-year-old seasoned public accountant told senators in March he unintentionally exaggerated the state's cash position by $3.5 billion by overstating the amount sent to colleges and universities for approximately a decade, according to The Associated Press.

Eckstrom has been in his position for 20 years and spent four years during the 90s as the state treasurer.

Though the error was not in actual cash, it affects the way the state reports its balance sheets and could negatively impact South Carolina's credit rating. The error has also eroded confidence that many lawmakers across party lines had in the seasoned accountant, The AP reported.

ACCOUNTING ERRORS TO COST EXECUTIVES THEIR BONUSES UNDER SEC RULE

FILE – South Carolina Comptroller General Richard Eckstrom holds up a book he wanted to present to his new Chief of Staff James Holly during his introduction at the Budget and Control Board meeting, Aug. 13, 2009, in Columbia, S.C. (AP Photo/Mary Ann Chastain, File)

"At least for a decade we know that he has signed his name, Richard Eckstrom, CPA, on our state's closing financial document and every year he has been wrong," said Republican Sen. Larry Grooms.

Grooms is the sponsor of a resolution introduced in the state legislature Thursday seeking a two-thirds vote from the House and Senate to trigger a state constitutional provision that would allow Gov. Henry McMaster to remove Eckstrom for "willful neglect of duty."

Of the state's 46 senators, 38 of them signed on to sponsor the proposal – and only 30 are needed to hit the two-thirds threshold. In the House, 83 out of 124 representatives need to sign on for the resolution to pass.

Grooms said the legislature needs to act because Eckstrom is not doing the "honorable thing" by refusing to resign.

According to The AP, McMaster said last week Eckstrom should be held accountable by voters instead of being impeached by lawmakers. His office said Thursday he had not changed his mind.

FIRST REPUBLIC BANK EXECUTIVES SOLD $12 MILLION IN STOCK IN MONTHS BEFORE CRASH

South Carolina Lt. Gov. Pamela Evette, left, administers the oath of office to state officers, from left, Secretary of State Mark Hammond, Treasurer Curtis Loftis, Attorney General Alan Wilson, Comptroller General Richard Eckstrom, Education Superint (AP Photo/Meg Kinnard, File)

The constitution allows Eckstrom a hearing in his own defense if that is what he wants, though the exact procedure isn't clear. Several senators also could not remember the process being used since it was added more than 50 years ago.

"We're consulting… right now to ensure we do the correct procedures," Grooms said. "He'll have an opportunity to rebut."

Eckstrom responded to the Wednesday Senate report by stating he isn't quitting, adding that his office worked "tirelessly" to find and fix the problem in 2013. The AP said the problem wasn't reported to lawmakers or government officials until months ago.

The error started as a $12 million coding error in 2007 and was compounded when the state switched accounting systems four years later in 2011, according to what Eckstrom has told senators at recent hearings.

It was discovered that state cash transferred to colleges and universities was being counted twice and Eckstrom allegedly ignored repeated warnings from auditors. He is also accused of waiting five years to conduct a full review of accounts that eventually assisted in uncovering the problem about a year ago.

Grooms said once Eckstrom is dealt with, he expects the Senate will take up other matters his subcommittee recommended like dismantling his agency and sending duties to other offices.

South Carolina Sen. Larry Grooms, R-Bonneau, introduces a resolution calling for the governor to remove state Comptroller General Richard Eckstrom from office if the House and Senate approve with a two-thirds vote. (AP Photo/Jeffrey Collins)

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Eckstrom has run unopposed in the past two elections. He last had a challenger in the Republican primary in 2010.

He said he would support a constitutional amendment making his job one appointed by the governor, but in the meantime, he will be focusing on the job he was elected to do, adding that he will not be "distracted by anyone."

The Associated Press contributed to this report.

Politics

Crypto stocks down, IPOs punted amid tariff tumult

Published

4 hours ago

April 4, 2025

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Crypto stocks down, IPOs punted amid tariff tumult

Cryptocurrency firms felt the heat from US President Donald Trump’s sweeping tariff rollout this week as market turbulence sent share prices tumbling and foiled initial public offering (IPO) plans.

From exchanges to Bitcoin (BTC) miners, crypto stocks suffered as much, if not more, than shares of other companies — despite the industry’s warm relationship with the US president.

On April 2, Trump announced he was placing tariffs of at least 10% on practically all imports into the United States and adding additional “reciprocal” tariffs on some 57 countries.

Since then, major US stock indices — including the S&P 500 and Nasdaq — tumbled by roughly 10% as traders braced for a looming trade war.

Sharp selloffs

Crypto exchange Coinbase — a prominent ally of Trump during the November US elections — experienced a similarly severe sell-off, with its stock price dropping by roughly 12% during the same period, according to data from Google Finance.

Bitcoin miners are also taking a hit. The CoinShares Crypto Miners ETF (WGMI) — which tracks a diverse basket of Bitcoin mining stocks — has lost roughly 13% of its value since immediately prior to Trump’s April 2 announcement, according to data from Morningstar.

Even Strategy, one of the best-performing stocks of 2024, wasn’t immune. Its share price has fallen by around 6% on the news, Google Finance data showed.

According to Reuters, investment bank JPMorgan has raised its estimated odds of a global economic recession in 2025 to 60% from 40% previously.

“Disruptive U.S. policies have been recognized as the biggest risk to the global outlook all year,” JP Morgan reportedly said.

“The effect … is likely to be magnified through (tariff) retaliation, a slide in U.S. business sentiment and supply-chain disruptions.”

IPO delays

The impact of US tariffs hasn’t been limited to stock price volatility. Stablecoin issuer Circle has reportedly paused plans for a 2025 IPO, citing market turbulence.

According to The Wall Street Journal, Circle is “waiting anxiously” before taking further steps after filing to take the company public on April 1.

It is among several companies — including fintech Klarna and ticketing service StubHub — reportedly considering altering or shelving IPO plans.

One exception may be Bitcoin itself, which some analysts say is finally “decoupling” from the broader market.

Bitcoin’s spot price has held above $82,000 this week, even as US equities markets collapsed.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Politics

Brazilian court authorizes crypto seizure for debt collection — Report

Published

4 hours ago

April 4, 2025

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Brazilian court authorizes crypto seizure for debt collection — Report

Brazilian judges have been authorized to seize cryptocurrency assets from debtors who owe money and are behind on their payments, signaling a growing recognition that digital assets can be both a form of payment and a store of value.

According to local media reports, the Third Panel of Brazil’s Superior Court of Justice unanimously authorized judges to send letters to cryptocurrency brokers informing them about their intent to seize an account holder’s assets to repay creditors.

The report was confirmed by the Superior Court of Justice, which issued a notice on its website.

The decision was reached unanimously by the Third Panel, which reviewed a case brought forward by a creditor.

“Although they are not legal tender, crypto assets can be used as a form of payment and as a store of value,” a translated version of the Superior Court of Justice’s memo read.

Under existing rules, Brazilian judges are allowed to freeze bank accounts and order fund withdrawals, even without a debtor’s knowledge, should they rule that a creditor is owed money.

Following the recent decision, crypto assets now fall under the same purview.

Minister Ricardo Villas Bôas Cueva, who voted in the five-person panel, said cryptocurrencies still lack formal regulation in Brazil but noted certain bills have recognized the asset class as “a digital representation of value.”

Despite regulatory uncertainty, Brazil is a major hub for crypto

Although Brazil still lacks an overarching framework for digital assets, with the country’s central bank divvying up the regulatory processes into phases, crypto adoption is surging across the country.

Brazil ranks second among all Latin American countries in terms of “crypto value received,” which is a key benchmark for adoption, according to an October report by Chainalysis.

Earlier this year, crypto exchange Binance was granted approval to operate in the country after it acquired a São Paulo-based investment company.

A Binance executive told Cointelegraph at the time that Brazil was making “significant strides” in regulating the industry and expects a comprehensive framework to be finalized “by mid-year.”

Nevertheless, not all of Brazil’s regulatory proposals have been favorable for the industry.

In December, the country’s central bank proposed banning stablecoin transactions on self-custodial wallets at a time when more locals were using dollar-pegged tokens to hedge against the devaluation of the Brazilian real.

Industry observers told Cointelegraph at the time that such a ban would be difficult to enforce.

“Governments can regulate centralized exchanges, but P2P transactions and decentralized platforms are much harder to control, which means the ban would likely only affect part of the ecosystem,” said Lucien Bourdon, an analyst with Trezor.

Environment

EcoFlow members can save up to 65% on power stations while supporting disaster relief during the 2025 Member’s Festival

Published

4 hours ago

April 4, 2025

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EcoFlow members can save up to 65% on power stations while supporting disaster relief during the 2025 Member's Festival

Portable power station specialist EcoFlow is kicking off its third annual Member’s Festival this month and is offering a unique new rewards program to those who become EcoFlow members. The 2025 EcoFlow Member’s Festival will offer savings of up to 65% for its participating customers, and a portion of those funds will be allocated toward rescue power solutions for communities around the globe through the company’s “Power for All” fund.

EcoFlow remains one of the industry leaders in portable power solutions and continues to trek forward in its vision to power a new tech-driven, eco-conscious future. Per its website:

Our mission from day one is to provide smart and eco-friendly energy solutions for individuals, families, and society at large. We are, were, and will continue to be a reliable and trusted energy companion for users around the world.

To achieve such goals, EcoFlow has continued to expand its portfolio of sustainable energy solutions to its community members, including portable power stations, solar generators, and mountable solar panels. While EcoFlow is doing plenty to support its growing customer base, it has expanded its reach by giving back to disaster-affected communities by helping bolster global disaster response efforts the best way it knows how– with portable power solutions.

EcoFlow and its members look to provide “Power for All”

Since 2023, EcoFlow has collaborated with organizations worldwide as part of its “Power for All” mission. This initiative aims to ensure access to reliable and timely power to disaster-affected communities across the globe, including rescue agencies, affected hospitals, and shelters, to support rescue and recovery efforts.

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This fund most recently provided aid for communities affected by the recent Los Angeles wildfires, assistance to the Special Forces Charitable Trust (SFCT) in North Carolina following severe hurricanes, and support for non-profits engaged in hurricane preparedness in Florida and the Gulf Coast. Per Jodi Burns, CEO of the Special Forces Charitable Trust:

In the wake of devastating storms in Western North Carolina, reliable power was a critical need for the families we serve. Thanks to EcoFlow’s generous donation of generators, we were able to provide immediate relief, ensuring these families and their communities had access to power when they needed it most. We are so impressed with EcoFlow’s commitment to disaster response through their ‘Power for All’ program. It has made a tangible impact, and we are deeply grateful for their support and partnership in helping these families recover and rebuild.

In 2024, the US experienced 27 weather and climate events, each causing losses exceeding $1 billion, marking the second-highest annual total on record, according to National Centers for Environmental Information. The increasing frequency and severity of natural disasters underscore the critical need for reliable and timely power solutions during emergencies, much like EcoFlow and its members are helping provide through the “Power For All” initiative.

To support new and existing EcoFlow members, the company is celebrating its third annual Member’s Festival throughout April to offer a do-not-miss discount on its products and donate a portion of all sales to the “Power for All” fund to provide rescue power to those in need in the future. Learn how it all works below.

Save big and give back during the 2025 Member’s Festival

As of April 1st, you can now sign up to become an EcoFlow member to participate in the company’s exclusive 2025 Member Festival.

As a member, you can earn “EcoFlow Power Points” by completing tasks like registration, referrals, and product purchases and tracking your individual efforts toward disaster preparedness and recovery.

Beginning April 4, EcoFlow members will also be able to take advantage of exclusive discounts of up to 65% off select portable power stations, including the DELTA Pro Ultra, DELTA Pro 3, DELTA 2 Max, DELTA 3 Plus, RIVER 3 Plus, and more. However, these sale prices only last through April 25, so you’ll want to move quickly!

Click here to learn more about EcoFlow’s “Power for All” campaign. To register for EcoFlow’s 2025 Member Festival in the US, visit the EcoFlow websi t e. To register as a member in Canada, visit here.

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