FTXDespite its complex institutional structure, Bahamian lawyers of everything”FTX Digital Markets” he says he came under his umbrella. Hence, they argue that FTX is a Bahamian entity subject to Bahamian law.
Bahamian Bankruptcy Officials Say FTX Is Not Authorized To File For Bankruptcy In The U.S.
The bankruptcy proceedings of the bankrupt crypto exchange FTX are already complicated. The 100-odd companies that filed for bankruptcy last Friday have an estimated one million creditors.
But Bahamian bankruptcy officers added a new dimension to the process.
Attorney Brian Simms, one of the interim bankruptcy officers appointed by the Bahamas Supreme Court, stated in the court filing that FTX is not authorized to file for bankruptcy in the United States.
He said he “rejects the validity of so-called attempts to drive FTX subsidiaries into bankruptcy.”
Simms’ announcement comes after he and other bankruptcy officers filed for Chapter 15 bankruptcy protection on behalf of FTX Digital Markets, the Bahamas arm of the crypto exchange that went bankrupt in the Southern District of New York (SDNY) on Tuesday.
Chapter 15 bankruptcy is often used in cross-border operations.
While Simms did not want the court to dismiss bankruptcy proceedings in the United States, he did demand that the court recognize the validity of legal proceedings in the Bahamas.
He said this could affect the operations of other FTX-controlled entities in the US.
This effect, which Simms essentially defends in his statement, can be summarized as follows:
FTX Digital Markets was the parent company of the entire FTX brand, and all assets of that brand ultimately belonged to FTX Digital Markets.
Despite the seeming complexity of FTX Corporation, the entire FTX Brand was ultimately operated from one location, the Bahamas. All management personnel were likewise located in the Bahamas.
Simms requested interim measures from the court, such as recognition of Bahamian bankruptcy and liquidation proceedings, and the entrustment of FTX’s U.S. assets to Bahamian bankruptcy officers, allowing for urgent investigative measures.
A hearing is scheduled for 13 December to determine next steps.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!