FTX debtors and Bahamas liquidators settle on asset recovery strategy

The 2 halves of FTX ⁠— its debtors successful the U.S. and its liquidators successful the Bahamas ⁠— person agreed connected an plus betterment program according to a Jan. 6 property release.

John J. Ray III, FTX’s CEO and Chief Restructuring Officer, said that though discussions volition continue, galore issues person been settled. He stated:

“We would similar to convey each of the Joint Provisional Liquidators of FTX DM… There are immoderate issues wherever we bash not yet person a gathering of the minds, but we resolved galore of the outstanding matters and person a way guardant to resoluteness the rest.”

The afloat property merchandise indicates that the 2 parties volition cooperate connected assorted efforts. The parties volition stock information, put the instrumentality of property, and record litigation against different parties. The 2 volition besides effort to maximize stakeholder recoveries ⁠— presumably meaning that erstwhile FTX customers volition beryllium made whole.

Specifically, the parties person settled connected inventorying crypto assets that securities regulators successful the Bahamas presently clasp successful a Fireblocks wallet.

Both parties are reportedly satisfied by the Bahamas Securities Commission’s safeguarding of those assets. The substance has been publically disputed since Dec. 29, erstwhile the Bahamas Securities Commission admitted to holding $3.5 billion of crypto. FTX besides claimed that regulators seized $300 million without immoderate close to bash so.

The 2 parties person besides agreed to the disposition of existent property successful the Bahamas. It is unclear whether this portion of the statement concerns FTX’s concern offices oregon extends to the controversial condominiums that FTX executives lived in.

The statement awaits support successful 2 jurisdictions: the U.S. Bankruptcy Court successful Delaware, which is handling FTX Trading Ltd.’s bankruptcy proceedings, and the Supreme Court of The Bahamas, which is handling FTX Digital Markets’ liquidation.

Elsewhere, successful the Southern District of New York, criminal proceedings are underway against erstwhile FTX CEO Sam Bankman-Fried and his associates.

The station FTX debtors and Bahamas liquidators settee connected plus betterment strategy appeared archetypal connected CryptoSlate.