Bankrupt FTX_Official's Bahamas unit appears to have commingled customer and corporate funds, its liquidators have said, echoing concerns from the exchange's U.S. arm. jackschickler reports.
The comments made in the accounting report echo those from John J. Ray III, the new boss of FTX’s U.S. entity, who has“It appears that client monies have been commingled such that it may not be possible to clearly identify sums that constitute client monies as opposed to general corporate funds,” said the document, authored by Lennox Paton’s Brian Simms and PWC’s Kevin Cambridge and Peter Greaves. The trio were jointly appointed by a Bahamas court as liquidators on Nov. 10 and 14 last year.
Bank balances of $137 million labeled as for the benefit of FTX Digital’s customers were subject to only “limited controls and governance,” meaning, in practice, they weren’t segregated, the report said. Of the $219.5 million total balance FTX Digital held in banks, $21.5 million has been realized by the liquidators, and a further $54.5 million is pending transfer to them, the document said. Another $143.2 million held in U.S. accounts has been seized by the Department of Justice, and other funds have been contested until the Bahamas bankruptcy is recognized in the U.S., the document said.
Former senior executives from FTX have been charged with crimes including wire fraud and money laundering by the U.S. DOJ. While some have entered a
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