• FTX, a bankrupt cryptocurrency exchange, and its affiliated debtors have reached a cooperation agreement to streamline the liquidation of the exchange’s subsidiary in the Bahamas.
• The legal teams in charge of the bankruptcy lawsuits in the United States and the Bahamas have made a consensual partnership deal to end the differences of opinions between the parties.
• The joint interim trustees and the FTX debtors have declared that they have agreed on a procedure to clarify the inventory underneath its regulation and are confident that the Bahamian Securities Commission (BSC) has protected their virtual assets.
On January 6th, the legal teams representing FTX, a bankrupt cryptocurrency exchange, and its affiliates came to an agreement that would allow the parties to streamline the liquidation of FTX’s subsidiary in the Bahamas. The settlement was made in order to end the differences of opinions between the U.S. and Bahamian parties involved in FTX’s bankruptcy lawsuits.
FTX had originally filed for Chapter 11 bankruptcy protection in November, and its 50 biggest lenders were owed $3.1 billion. Since then, two parallel liquidation processes had been taking place in Delaware, where the company sought bankruptcy protection, and in the Bahamas, the location of FTX Digital Markets. The agreement between the two legal teams was necessary to make sure that the two processes worked together in a way that was beneficial to all parties involved.
The joint interim trustees and the FTX debtors declared that they had agreed upon a procedure to clarify the inventory beneath their regulation and that the Bahamian Securities Commission (BSC) had taken measures to protect FTX’s virtual assets. FTX’s liquidations CEO John Ray III stated that there were still some differences between the parties that needed to be addressed.
The agreement between the two legal teams is a major step forward in the liquidation process of FTX and its affiliates. It shows that the parties involved are willing to cooperate in order to come to a beneficial outcome for all involved. This is a positive development for FTX’s creditors and shareholders, who will be able to receive their compensation in a timely manner.