FTX teams in U.S., Bahamas to coordinate crypto recovery efforts By Reuters & More Trending News
© Reuters. FILE PHOTO: The brand of FTX is seen on the entrance of the FTX Arena in Miami, Florida, U.S., November 12, 2022. REUTERS/Marco Bello/File Photo
By Tom Hals and Dietrich Knauth
(Reuters) -FTX’s U.S.-based chapter workforce have agreed to coordinate with liquidators winding down the crypto change’s operations in the Bahamas, resolving a dispute that threatened the recovery of what could possibly be billions of {dollars} in misplaced funds.
In a joint assertion on Friday, the 2 sides mentioned they’ll work to share info, safe property and coordinate litigation in opposition to third events.
FTX’s U.S. chapter workforce has been at odds with Bahamian officers since November, when competing bankruptcies have been filed in the 2 international locations.
The Securities Commission of the Bahamas started liquidation proceedings on Nov. 10 in opposition to FTX Digital Markets Ltd., the corporate’s Bahamas-based unit. The subsequent day a U.S. Chapter 11 continuing was filed in Delaware, which included greater than 100 FTX entities together with FTX Trading and crypto hedge fund Alameda Research.
Bahamian regulators have seized FTX belongings, which officers mentioned was meant to safeguard belongings that may finally be returned to collectors of FTX Digital Markets.
John Ray, who took management of FTX after founder Sam Bankman-Fried resigned in November, had accused Bahamas-based liquidators of colluding with the disgraced founder to undermine the U.S. chapter case and shift belongings to the Bahamas.
Ray’s attorneys had refused the liquidators’ demand for entry to inner techniques and Slack and electronic mail accounts, saying they “did not trust” the Bahamians with info that could possibly be used to siphon belongings away from the U.S. chapter workforce.
Bahamian securities regulators accused Ray of displaying “a cavalier attitude towards the truth” in his statements concerning the Bahamian asset seizures.
The U.S. workforce has additionally disputed the scale of the Bahamian belongings that have been seized, saying they have been value $296 million in November, not $3.5 billion because the liquidators estimated. Friday’s assertion mentioned the U.S. workforce was now comfy the belongings have been appropriately safeguarded.
Ray mentioned there have been nonetheless some points to be labored out in the settlement with the liquidators from the Bahamas. Friday’s assertion mentioned particulars of the settlement could be filed “shortly” with the U.S. Bankruptcy Court in Delaware.
Ray, one of many liquidators and attorneys for the liquidators didn’t reply to a request for remark.
Bankman-Fried was arrested on fraud expenses and pleaded not responsible on Jan. 3. Ray has mentioned the change misplaced $8 billion of buyer cash, and added the chapter workforce is targeted on recovering belongings to repay collectors.
FTX teams in U.S., Bahamas to coordinate crypto recovery efforts By Reuters
FTX teams in U.S., Bahamas to coordinate crypto recovery efforts By Reuters
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FTX teams in U.S., Bahamas to coordinate crypto recovery efforts By Reuters