After an investigation, the bankrupt exchange revealed that customer funds and institutional funds were mixed in the Bahamas unit of FTX.
According to a report by PriceWaterhouseCoopers employees, FTXDigital had bank accounts worth $219 million.
FTX’s Bahamas Unit Mixes Client Funds With Institutional Funds
The liquidators, the Bahamas arm of the crashed cryptocurrency exchange, according to a document submitted to a local court on Feb. FTXHe realized that Digital Markets Ltd was confusing corporate funds with customer money.
Comments on the accounting report lamented a lack of corporate control over the company before John J. Ray III, the new director of FTX’s US presence, took over on November 11.
Written by Brian Simms of Lennox Paton and Kevin Cambridge and Peter Greaves of PWC, the document included the following statements:
“Client monies appear to be intermingled in such a way that it is not possible to clearly identify the amounts that make up client monies, unlike general institutional funds.”
The trio were also appointed joint liquidators by a Bahamas court on November 10 and 14 last year.
