On Jan. 6, FTX, the bankrupt cryptocurrency exchange, and its affiliated debtors revealed details of their cooperation deal to streamline the liquidation of the exchange’s subsidiary in the Bahamas.
FTX US and Bahamas to reach a mutual partnership
The legal teams in charge of turbulent cryptocurrency exchange FTX’s bankruptcy lawsuits in the United States and the Bahamas have made a consensual partnership deal, which ends the differences of opinions between the parties involved that arose shortly after the corporation’s demise. FTX filed for Chapter 11 bankruptcy protection in November, and its 50 biggest lenders owed $3.1 billion.
Parallel FTX liquidation processes are taking place in Delaware, where the company sought Chapter 11 bankruptcy safeguard, and the Bahamas, the location of FTX Digital Markets, making it necessary to harmonize them via partnered efforts.
In a press release, the joint interim trustees and the FTX debtors declared they understood how they would cooperate during court action in each jurisdiction, making the process seamless while considering the interests of all parties affiliated with the exchange.
A glimpse of differences still underneath the parties
FTX US and Bahamas groups also affirmed a procedure to clarify the inventory underneath its regulation and are confident that the Bahamian Securities Commission (BSC) has protected their virtual assets.
FTX liquidations CEO John Ray III suggested that there were still some differences in the disagreements between parties since there were still some gatherings of minds. Nonetheless, he added that they had resolved some of the matters and looked forward to solving the rest.
Brian J. Simms, senior partner at Lennox Paton and familiar with Bahamian trust law, stated that their meetings stressed their shared objective of seeking a solution for the clientele and creditors of the FTX platform. To achieve that goal, each jurisdiction has access to a different set of tools and is looking forward to cooperating to achieve the best results for each stakeholder.
The U.S. Federal Bankruptcy Court in Delaware and the Bahamas supreme court must approve the memorandum of understanding before it becomes final. The next FTX court hearing in Delaware is set for Jan. 13.