FTX Digital Markets, the crypto exchange’s Bahamian entity, commingled customer and corporate funds, according to a report filed in court earlier this month.
The joint provisional liquidators unwinding FTX’s bankruptcy in the Bahamas filed a lengthy report on Feb. 8 that said the company had “limited” accounting records and made “little distinction between what represents, potentially, client monies and corporate funds."
New FTX CEO John Ray has made similar claims about the lack of financial records across the firm’s more than 100 entities. Meanwhile, former FTX CEO Sam Bankman-Fried has pleaded not guilty to criminal charges related to the mishandling of customer funds, among other allegations. Two former executives have pleaded guilty to criminal charges.
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