Sam Bankman-Fried associated with the global digital asset company Bahamas based organization FTX Digital Markets Ltd. Chapter 15 bankruptcy protection applied for.
Chapter 15 filings are designed to facilitate corporate bankruptcies involving entities and organizations that span multiple countries. The Bahamas unit’s application follows the FTX Exchange Section 11 application.
Bahamas Division of FTX Exchange Files for Chapter 15 Bankruptcy in New York
The documents submitted by the company to the court of the Southern District of New York indicated that the debtor’s assets and businesses were subject to control or supervision by a foreign court for the purpose of reorganization or liquidation and were made under foreign transaction law.
In the application, it was stated that this would provide temporary liquidators, who could act as foreign representatives, with an extensive research opportunity regarding the debtor’s property and affairs.
This filing comes after Bankman-Fried and 130 different FTX-related entities, including FTX Trading Ltd, filed a spur-of-the-moment petition for Chapter 11 bankruptcy protection earlier this month.
According to court filings, FTX has more than one million creditors and the restructuring team is in contact with regulatory authorities around the world to secure client accounts.
FTX Digital, a subsidiary of FTX Trading, used to allow users to convert their fiat money into tokens and vice versa.
The filing asked the New York bankruptcy court to approve the petition, acknowledging that this bankruptcy filing would assist in the orderly dissolution of FTX and was consistent with the public policy of the United States contained in the Bankruptcy Act.
*Not investment advice.
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