A press release on Friday said that FTX’s U.S. management and court-appointed liquidators of the company’s Bahamas wing have reached an agreement that addresses, among other things, how to inventory and sell assets.
FTX.com cryptocurrency FTX Trading, the organization behind the stock exchange, filed for bankruptcy in the US last November, while FTX Digital Markets, a Bahamas-based organization, began liquidation the same month.
The joint temporary liquidators in the Bahamas and the management of FTX Trading in the US had had discussions over legal issues, alleging that their transactions had been tampered with.
Lawyers representing FTX Trading had argued with the US bankruptcy court that liquidators should not allow FTX access to Amazon and Google cloud services or other IT tools.
Lawyers for FTX Trading had argued with the US bankruptcy court that Bahamas liquidators should not allow FTX access to Amazon and Google cloud services or other IT tools.
FTX CEO John Ray III Talks About The Deal
FTX CEO John Ray III said Friday that the joint temporary liquidators had “constructive meetings” with his team in Miami this week. “There are some issues we have yet to reach consensus on, but we have resolved most of the unresolved issues and have identified a way forward to resolve the rest,” he said.
Brian Simms, one of the liquidators, likewise said he “looks forward” to working with US bankruptcy administrators.
According to the statement, the parties will “work together to share information, secure and return property, coordinate litigation against third parties, and explore strategic alternatives to maximize stakeholder recovery.”
The statement stated that FTX Trading will be involved in the Bahamas liquidation proceedings and FTX Digital Markets will be involved in the US bankruptcy proceedings.
Liquidators will be responsible for disposing of FTX-affiliated real estate, but both the U.S. bankruptcy court and the Bahamas supreme court will oversee this process. Both courts will be involved in approving the “inventory of digital assets” controlled by the Bahamas Securities Commission.
In the statement, it was stated that both courts must sign the cooperation agreement. A bankruptcy court in Delaware was supposed to hold a hearing to address some of these jurisdiction issues Friday morning, but the hearing was adjourned to January 13.
*Not investment advice.
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