Report Reveals Limited Accounting Records, Commingled Funds at FTX Digital Markets in the Bahamas

PWC, 1 of the ‘Big Four’ auditors and among the largest nonrecreational services networks globally, precocious published a study connected FTX Digital Markets, the bankrupt crypto exchange’s Bahamian subsidiary. The study indicates that the entity’s accounting records person been limited, and it besides noted that determination is “little favoritism betwixt what represents perchance lawsuit monies and firm funds.”

FTX Joint Provisional Liquidators Continue Investigations Into Bahamian Subsidiary

In mid-November 2022, pursuing the Chapter 11 bankruptcy filing by the speech FTX and its ample fig of subsidiaries, The Bahamas’ regulator appointed Kevin Cambridge and Peter Greaves from PWC arsenic the associated provisional FTX liquidators successful the proceedings. PWC has precocious published a report that shows the crypto exchange’s Bahamian entity FTX Digital Markets reportedly commingled lawsuit funds.

FTX Digital Markets fundamentally held “limited accounting records,” and the PWC auditors noted that determination “appears to person been small favoritism betwixt what represents perchance lawsuit monies and firm funds.” Additionally, on with the alleged commingling of funds, information was reportedly commingled arsenic good betwixt the company’s wider affiliates “with small oregon nary segregation applied.”

The auditors discovered $219.5 cardinal successful currency held astatine assorted banks, and requests person been made to the fiscal institutions to retrieve the funds. PWC besides discussed the assorted properties purchased successful The Bahamas by FTX executives, and it further noted that FTX Digital besides owns astir $3 cardinal successful ancillary assets. In summation to the assets discovered, a important information of the crypto assets is not nether the associated provisional FTX liquidators’ power owed to the $323 cardinal hack stemming from FTX International.

“The [joint provisional liquidators] person requested the transportation of $46.7 cardinal successful [tether] from an relationship successful the sanction of FTX Digital, and they are waiting for the transportation of these assets to their custody,” the study from the PWC auditors further discloses. The study besides calls for further investigations into the company’s “cash management,” “antecedent transactions,” and “customer migration.” FTX’s associated provisional liquidators accidental they proceed to employment astir 16 individuals for ongoing investigations and probe into the “possibility of restructuring the business.”

What bash you deliberation astir the caller study from PWC concerning the FTX Bahamian subsidiary? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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