FTX Digital Markets, based in the Bahamas, effectively merged corporate and client funds, and kept ‘limited’ accounting records. This was stated by representatives of the liquidators of the subsidiary bankrupt Bitcoin exchange.
The document notes ‘slight differences’ in the ownership of the assets.
According to the insolvency practitioners, about $219.5 million is held across several bank accounts of FTX Digital Markets. They declined to quantify the share of client assets.
FTX Digital Markets may have more than 2.4 million users across more than 230 jurisdictions, including 10,500 institutional clients.
The liquidators also uncovered intra-group debts totaling $276.2 million. This includes a debt of $256.3 million owed to FTX Property ‘for possible financing of the acquisition of commercial and residential real estate in the Bahamas‘.
Earlier, FTX chief John Ray admitted that he had never seen such a complete collapse of corporate governance and an absolute lack of reliable financial information, as in the case of FTX.
Earlier, Ray spoke of a possible relaunch of the Bitcoin exchange.