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, FTX Digital had $219 million in bank accounts.
FTX’s Bahamas Unit Mixes Client Funds With Institutional Funds
Liquidators discovered that FTX Digital Markets Ltd, the Bahamas arm of the crashed cryptocurrency exchange, was mixing institutional funds with customer money, according to a document filed in a local court on Feb.
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.
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