FTX has entered into a settlement with the liquidators of 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 FTXGroup, 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."
Bahamian Liquidators to Recover FTX's Assets in the Region
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 decision was made after a turbulent period for FTX, marked by court filings, regulatory scrutiny, and the appointment of provisional liquidators.
Before this, the Securities Commission of the Bahamas (SCB) suspended FTX's registration and froze all of 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, along with 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.
This article was written by Jared Kirui at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments