BitcoinWorld

Blockchain News

FTX, Bahamian FTX DM Reach Agreement on Info Sharing, Disposition of Property, Assets

The parties had been at odds over a number of issues and have agreed to continue working on the remaining open questions.

The FTX Debtors, which include FTX and its affiliated debtors, and FTX Digital Markets (FTX DM), FTX’s Bahamian subsidiary, announced on January 6 that they had reached a cooperation agreement regarding the FTX Debtors’ Chapter 11 bankruptcy case in Delaware and FTX DM’s provisional liquidation in the Bahamas.

The parties will “share information, secure and return property to their estates, coordinate litigation against third parties, and explore strategic alternatives for maximising stakeholder recoveries,” according to the agreement. They have also established guidelines for cooperation in each other’s court cases.

Furthermore, the parties agreed that the joint provisional liquidators will take the lead in the disposition of Bahamas real estate and confirm digital assets “under the control of the Securities Commission of the Bahamas in the Fireblocks account previously disclosed by the FTX Debtors.” As of the date of the agreement:

“The parties are each comfortable the digital assets have been appropriately safeguarded by the Securities Commission as restructuring discussions continue.”

On November 12, the Bahamas Supreme Court ordered that all FTX DM digital assets be transferred to a wallet owned by the Bahamas Securities Commission.

“There are some issues where we do not yet have a meeting of the minds,” said FTX Debtors CEO and Chief Restructuring Officer John Ray, “but we resolved many of the outstanding matters and have a path forward to resolve the rest.”

The agreement still needs to be approved by the United States Bankruptcy Court in Delaware and the Bahamas Supreme Court.

The United States and the Bahamas have clashed over a number of issues, including allegations of favouritism, information withholding, and even that Bahamian authorities asked former FTX CEO Sam Bankman-Fried to mint new tokens that they would control.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.