Global accounting firm PWC, one of the Big Four auditors, recently released a report on FTX Digital MarketsThe Bahamian subsidiary of the now-bankrupt crypto exchange. The Report notes that the entity’s accounting records were limited and that there was “little distinction between what represents customer funds and corporate funds.”
Joint provisional Liquidators continue investigations into Bahamian FTX subsidiary
In mid-November 2022, FTX Trade and its multitude of subsidiaries filed for Chapter 11 bankruptcy in the Bahamian courts. The court appointed PWC regulators Kevin Cambridge and Peter Greaves as joint provisional liquidators for FTX. PWC recently published a report on Bahamian FTX digital markets, which is an alleged cryptocurrency trading entity, regarding the counseled customers’ funds.
FTX Digital Markets had only “limited accounting records,” according to the PWC auditors. Furthermore, there “appears to be little distinction between what represents customer money and corporate funds,” and there was “little or no segregation applied.”
The auditors discovered $219.5 million in cash at various banks and made requests to the financial institutions to secure the funds. PWC also mentioned the many assets that were purchased within the scope of their survey. An additional $3 million was collected in ancillary assets. A large amount of crypto assets will not be under the control of FTX’s joint provisional liquidators due to the $323 Million hack from FTX International.
“They [joint provisional liquidators] have requested the transfer of $46.7 million in [tether] from an account in the name of FTX Digital, and are awaiting the transfer of these assets into their custody,” the PWC auditors’ report further states. The report also calls for further investigations into the company’s “Management of funds,” “Historical transactions” and “Client migration.” FTX’s joint provisional liquidators say they continue to employ around 16 people for ongoing investigations and research into the “Risk of restructuring the business.
What do you think of the PWC’s recent report on the FTX Bahamian subsidiary? Let us know your thoughts on this topic in the comments section below.
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