Shock Blame From FTX to Bahamas Government!

bankrupt cryptocurrency exchange FTX accuses the Bahamas government of directing unauthorized access to FTX’s systems to attract assets after the company filed for Chapter 11 bankruptcy in the US.

The lawsuit filed in the U.S. Bankruptcy Court for the District of Delaware did not specify which actions were unauthorized or how they occurred.

FTX Claims Government of Bahamas Unauthorized Access to Exchange Assets

The accusation was contained in a document appealing to a complaint filed in a New York court by Bahamian liquidators tasked with overseeing FTX’s assets.

In its Chapter 15 filing, which applies to bankruptcy proceedings requiring cooperation between US and foreign courts, the liquidators asked the US court to transfer control of the proceedings to the Bahamas, where FTX is headquartered.

In the company’s filing Thursday, the court was asked to order the Chapter 15 case to be transferred from the New York court to Delaware in order to “end the chaos” caused by the complex transactions involving FTX’s multiple entities seeking bankruptcy protection, so that all transactions “can be done in one place”.

Despite FTX’s desire to end the chaos, their accusations against the Bahamian government continue to add new confusion to the proceedings.

The filing attributed to FTX Trading states that after legal proceedings began in the US last Friday, borrowers “have credible evidence that the Bahamian government is responsible for directing unauthorized access to borrowers’ systems in order to obtain digital assets.”

“It appears that automatic suspension has been violated by at least one Bahamian government element,” the application said, referring to bankruptcy rules that require assets to be frozen until they are allocated to creditors.

*Not investment advice.

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