- Agreement between FTX and FTX Digital Market regarding FTX Debtors
- The Agreement requires the approval of the U.S. Bankruptcy Court and SCB.
A new chapter opened in the FTX book, now the FTX and Bahamian FTX Digital Markets Ltd mutually agreed on sharing crucial information.
On 6 January 2023, the joint announcement came from FTX Trading Ltd., its affiliated debtors, FTX Digital Markets Ltd., and the Joint Provisional Liquidators—the mutual partnership agreement with respect to the FTX Debtors Chapter 11 bankruptcy case in Delaware and the provisional liquidation of FTX DM in the Bahamas.
Under the Agreement, all parties get down to business together to share their information, secure and return the property to their estates, explore alternatives of strategies to maximize stakeholder recoveries, and, importantly, take legal action against third parties.
Although, this association alliance also responds positively for involving FTX DM in the chapter 11 cases and for involving the FTX Debtors in the FTX Debtors in proceedings in the Bahamas.
The association also see eye to eye on the temperament of real estate in the Bahamas in undertaking led by the JPLs and supervise by courts in both jurisdictions, along with a process to confirm the inventory of digital assets under the control of the Securities Commission of the Bahamas in the firelocks account previously disclosed by the FTX Debtors.
The parties are comfortable that the Securities Commission has appropriately safeguarded the digital assets as restructuring discussions continue.
FTX Digital Assets
On 12 November, the Supreme Court of Bahamas ordered the Securities Commission of Bahamas to transfer all FTX digital assets to their owned wallet, with the justification given by SCB that the prominent objective is to take necessary action in respect of clients and creditors of FTX DM as soon as possible.
FTX Debtors CEO and Chief Restricting officer, John Ray III, stated that:
“there are some issues where we do not yet have a meeting of the minds, but we resolved many of the outstanding matters and have a path forward to resolve the rest.”
Continued by Brain J. Simms, member of Joint Provisional Liquidators, “Our meetings stressed our shared objective to find the best solution for customers and creditors of the FTX.com platform.” he added, “each jurisdiction has different tools available to accomplish that objective, and we look forward to working collaboratively to optimize the outcome for all of our respective stakeholders.”
The approval of the Agreement from the United States Bankruptcy Court in Delaware and the Supreme Court of the Bahamas is still pending and requires compliance. While The FTX Debtors will file the Agreement on the docket in the chapter 11 cases shortly.
both U.S. and Bahamas have conflicted over several issues that included an allegation of the Bahamian authorities asked former FTX CEO Samuel Bankman-Fried to mint new tokens for country, allegation of favoritism, and withholding of information and
Last month SBF was arrested in the Bahamas and extradited to the U.S.—later on, SBF pleaded “not guilty” to all eight charges, including wire fraud and money laundering—connected with the FTX collapse, which carries a total of 115 years of prison for him if he is convicted.