1 year ago
According to lawyers representing FTX's provisional liquidators, allegations that Bahamian officials were giving residents preferential attraction were “wholly without merit”.
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A lawyer representing provisional liquidators overseeing FTX’s assets has pushed backmost against allegations officials successful the Bahamas were utilizing the illness of the crypto speech to payment its residents first.
In a Dec. 16 proceeding for FTX Trading’s bankruptcy proceedings, White & Case spouse Jason Zakia said allegations made by debtors concerning FTX assets and Bahamian authorities were “wholly without merit”. The ineligible squad represented provisional liquidators whose appointments were approved by the Supreme Court of the Bahamas successful November and had “no involvement” successful the downfall of FTX anterior to its bankruptcy, according to Zakia.
“In immoderate planetary lawsuit similar this, determination are a multitude of jurisdictions that person morganatic and important interests and that surely includes the Bahamas,” said Zakia. “The Bahamian ineligible strategy is an autarkic ineligible strategy that should beryllium respected. There person been a batch of allegations and aspersions thrown astir directed astatine the Bahamas — the Bahamian government, the Bahamian ineligible system.”
He clarified:
“One of the allegations [...] that Bahamians were someway facilitating payments disconnected the strategy to Bahamian residents successful penchant to different creditors. When you look astatine the evidence, they person that precisely backwards. [Joint proviso liquidators] were appointed specifically arsenic portion of an effort to halt specified activity.”FTX filed for bankruptcy nether Chapter 11 successful the United States District of Delaware connected Nov. 11. The bankruptcy tribunal has held a fewer hearings arsenic portion of the proceedings dealing with however the firm’s assets whitethorn beryllium handled amid interests from FTX debtors and creditors. The adjacent proceeding disposable to the nationalist is expected connected Jan. 11, which volition apt address the crypto exchange’s naming rights deal implicit the FTX Arena.
Related: FTX Bahamas co-CEO Ryan Salame blew the whistle connected FTX and Sam Bankman-Fried
In the Bahamas, erstwhile FTX CEO Sam Bankman-Fried was sent to prison pursuing a bail proceeding connected Dec. 13 successful conjunction with charges from the U.S. Justice Department. The authorities bureau has warned individuals involved that it was “not done” with arrests.
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