On January 6, bankrupt cryptocurrency exchange FTX and its associated debtors revealed details of their cooperation deal to streamline the liquidation of the exchange’s subsidiary in the Bahamas.
FTX US and The Bahamas Reach Mutual Partnership
The legal team in charge of troubled cryptocurrency exchange FTX bankruptcy cases The United States and the Bahamas have entered into an agreed partnership deal, which ends differences between the parties that arose immediately after the corporation’s demise. FTX filed for Chapter 11 bankruptcy protection in November, and owes $3.1 billion to its 50 largest lenders.
Parallel FTX liquidation processes taking place in Delaware, where the company sought Chapter 11 bankruptcy protection, and the Bahamas, the location of FTX Digital Markets, made it necessary to reconcile them through partnering efforts.
In a press release, the Joint Interim Trustee and the FTX Debtors announced that they have understood how they will cooperate during the court proceedings in each jurisdiction, to facilitate a smooth process considering the interests of all parties involved with the Exchange. Could
Still a glimpse of the differences below the parties
The FTX US and Bahamas groups also confirmed a process to clear inventory under their regulation and are assured that they are protected by the Bahamian Securities Commission (BSC). virtual asset,
John Ray III, CEO of FTX Liquidation, suggested that there were still differences of opinion between the parties as there was still some gathering of minds. However, he said that he has resolved some of the cases and hopes to resolve the rest.
Senior partner at Lennox Patton and familiar with Bahamian trust law, Brian J. Sims said that their meetings insisted on their share The purpose of finding solutions for customers and creditors of FTX Platform. To achieve that goal, each jurisdiction has access to a different set of tools and is looking forward to collaborating to achieve the best outcome for each stakeholder.
The US Federal Bankruptcy Court in Delaware and the Supreme Court of the Bahamas must approve the memorandum of understanding before it can be finalized. The next FTX court hearing is scheduled for January 13 in Delaware.
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