Cryptocurrency

FTX debtors and Bahamas liquidators settle on asset recovery strategy

Hull Invest

The two halves of FTX ⁠—U.S. debtor and Bahamas liquidator⁠— have agreed to an asset recovery plan. January 6 Press release.

FTX CEO and Chief Restructuring Officer Jon J. Ray III said many issues have been resolved, although discussions continue. he said:

“We would like to thank all of the Joint Interim Liquidators of FTX DM…There are some issues that we have not yet agreed on, but we have resolved many of the outstanding issues and have a path to resolve the rest. .”

The full press release indicates that both parties will work together on various initiatives. Parties share information, arrange the return of property, and file lawsuits against other parties. The two will also try to maximize stakeholder recovery⁠—which presumably means that her former FTX customers will be complete.

Specifically, the parties agreed to develop a list of crypto assets currently held in Fireblocks wallets by the Bahamian securities regulator.

Both parties are reportedly satisfied with the protection of these assets by the Bahamas Securities Commission. The issue has been publicly debated since December 29, when the Bahamas Securities Commission admitted he had $3.5 billion in cryptocurrency. FTX also claimed he seized $300 million without any rights to regulators.

The parties also agreed to the disposal of real estate in the Bahamas. It’s unclear if this part of the agreement concerns FTX’s business premises or extends to the controversial condo where FTX executives lived.

The agreement is pending approval in two jurisdictions: the United States Bankruptcy Court in Delaware, which is handling the bankruptcy proceedings of FTX Trading Ltd., and the Supreme Court of the Bahamas, which is handling the liquidation of FTX Digital Markets.

Elsewhere, criminal proceedings are underway in the Southern District of New York against former FTX CEO Sam Bankman-Fried and his associates.

Posted In: FTX, Exchanges

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