PWC, one of the ‘Big Four’ auditors and one of the largest professional services networks in the world, recently released a report on FTX Digital Markets, the Bahamian subsidiary of the bankrupt crypto exchange. The report indicates that the entity’s accounting records have been limited, also noting that there is “little distinction between what represents money from potential clients and corporate funds.”
FTX joint provisional liquidators continue investigations into Bahamian subsidiary
In mid-November 2022, following the Chapter 11 bankruptcy filing by the FTX exchange and its large number of subsidiaries, the Bahamian regulator appointed PWC’s Kevin Cambridge and Peter Greaves as the joint provisional liquidators of FTX. in the procedure. PWC has recently published a report that shows Bahamian cryptocurrency exchange entity FTX Digital Markets allegedly commingled client funds.
FTX Digital Markets essentially had “limited accounting records,” and PWC’s auditors noted that “there appears to be little distinction between what represents potential client money and corporate funds.” Furthermore, along with the alleged mixing of funds, the data was also mixed between the company’s broader subsidiaries “with little or no segregation applied.”
Auditors discovered $219.5 million in cash at various banks, and requests have been made to financial institutions to recover the funds. PWC also discussed the various properties purchased in the Bahamas by FTX executives, further noting that FTX Digital also owns around $3 million in ancillary assets. In addition to the discovered assets, a significant portion of crypto assets is not under the control of FTX’s joint provisional liquidators due to the $323 million hack stemming from FTX International.
“The (provisional joint 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 continues. . reveals The report also calls for more investigations into the company’s “cash management,” “background transactions,” and “customer migration.” FTX’s joint provisional liquidators say they continue to employ about 16 people for ongoing investigations and research into the “possibility of restructuring the business.”
What do you think of the recent PWC report on the FTX Bahamian subsidiary? Let us know what you think about this topic in the comments section below.
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