FTX has entered into a settlement with liquidators
for its unit in the Bahamas. This agreement involves the consolidation of assets and
adopting a unified approach to valuing customers’ claims.
According to a statement shared with PR Newswire, this agreement lets FTX’s customers choose how they
get their money back, either through the bankruptcy process in the US or the liquidation proceedings in the Bahamas.
Peter Greaves, the Joint Official Liquidator,
mentioned: “This continues to be an exceptionally complex insolvency with
a myriad of jurisdictional, technical, and practical challenges to work
through.”
“For the millions of customers of the FTX
Group, based across 230 jurisdictions, this is a landmark breakthrough allowing
for collaboration in the monetization of assets and the adjudication of
customer claims, with an approach that provides a roadmap to accelerate the
return of funds to customers.”
Under this agreement, FTX’s team based in the US will spearhead asset recovery efforts. This includes any sale transaction involving FTX.com exchange or its intellectual property. Meanwhile, Bahamian liquidators will focus on selling Bahamas-based real estate assets and pursuing specific legal claims.
Last year, FTX Digital Markets applied for bankruptcy protection in the US. This move happened after a turbulent period for FTX, marked by court filings, regulatory scrutiny, and
the appointment of provisional liquidators.
Prior to this, the Securities Commission of the Bahamas (SCB) suspended
FTX’s registration and froze its assets. On top of that, the Australian securities regulator suspended the
crypto exchange’s license. Similar moves were made by Japan’s Kanto Local Finance
Bureau and the Cyprus Securities and Exchange Commission.
Early this year, the SCB confronted FTX’s CEO, John
Ray, over assertions about handling $3.5 billion in customers’ funds. The dispute
revolved around the regulator’s acquisition of digital assets from FTX’s local
entity following the collapse of the cryptocurrency exchange.
FTX Faces Regulatory Challenges in the US and the Bahamas
Ray contested the calculations by the Bahamas’ regulator regarding the digital assets linked to FTX’s customers. The SCB
refuted Ray’s claims, citing incomplete information. These allegations added that the regulator minted
$300 million in FTT tokens, besides accusations of theft regarding FTX’s tokens
under the custody of the SCB.
The downfall of FTX commenced with its bankruptcy
filing and subsequent fallout involving over 130 affiliates. Matters worsened when a cyberattack resulted in the
theft of millions of cryptocurrencies on the exchange.
FTX has entered into a settlement with liquidators
for its unit in the Bahamas. This agreement involves the consolidation of assets and
adopting a unified approach to valuing customers’ claims.
According to a statement shared with PR Newswire, this agreement lets FTX’s customers choose how they
get their money back, either through the bankruptcy process in the US or the liquidation proceedings in the Bahamas.
Peter Greaves, the Joint Official Liquidator,
mentioned: “This continues to be an exceptionally complex insolvency with
a myriad of jurisdictional, technical, and practical challenges to work
through.”
“For the millions of customers of the FTX
Group, based across 230 jurisdictions, this is a landmark breakthrough allowing
for collaboration in the monetization of assets and the adjudication of
customer claims, with an approach that provides a roadmap to accelerate the
return of funds to customers.”
Under this agreement, FTX’s team based in the US will spearhead asset recovery efforts. This includes any sale transaction involving FTX.com exchange or its intellectual property. Meanwhile, Bahamian liquidators will focus on selling Bahamas-based real estate assets and pursuing specific legal claims.
Last year, FTX Digital Markets applied for bankruptcy protection in the US. This move happened after a turbulent period for FTX, marked by court filings, regulatory scrutiny, and
the appointment of provisional liquidators.
Prior to this, the Securities Commission of the Bahamas (SCB) suspended
FTX’s registration and froze its assets. On top of that, the Australian securities regulator suspended the
crypto exchange’s license. Similar moves were made by Japan’s Kanto Local Finance
Bureau and the Cyprus Securities and Exchange Commission.
Early this year, the SCB confronted FTX’s CEO, John
Ray, over assertions about handling $3.5 billion in customers’ funds. The dispute
revolved around the regulator’s acquisition of digital assets from FTX’s local
entity following the collapse of the cryptocurrency exchange.
FTX Faces Regulatory Challenges in the US and the Bahamas
Ray contested the calculations by the Bahamas’ regulator regarding the digital assets linked to FTX’s customers. The SCB
refuted Ray’s claims, citing incomplete information. These allegations added that the regulator minted
$300 million in FTT tokens, besides accusations of theft regarding FTX’s tokens
under the custody of the SCB.
The downfall of FTX commenced with its bankruptcy
filing and subsequent fallout involving over 130 affiliates. Matters worsened when a cyberattack resulted in the
theft of millions of cryptocurrencies on the exchange.
