Defunct Exchange Sues Bahamian Liquidators Over Assets

FTX News: What comes as the latest twist in the FTX story, the bankrupt crypto exchange on Sunday filed a lawsuit against the Bahamian lawyers who are in charge of the liquidation of its affiliate FTX Digital Markets. FTX is reportedly accusing the liquidators of making false claims of ownership over the exchange’s assets.

FTX Sues Bahamian Liquidators

In the lawsuit filed by the United States-based bankruptcy team of FTX — managed by the company’s newly appointed CEO John J. Ray III — stated that the liquidators were attempting to stake a claim to FTX.com’s cryptocurrencies, intellectual property, and customer relationships.

Read More: Why Are Crypto Stocks Like Coinbase, Microstrategy & Others Up Today?

FTX referred to FTX DM as a “fraudulent enterprise.” FTX DM had initially been established just as a local service firm, and it did not possess the FTX.com exchange or any of the seized cryptocurrencies. Since FTX submitted its petition for protection from creditors on November 11, the company has been at conflict with officials in the Bahamas.

The filing stated that,

If the FTX debtors succeed in this adversary proceeding, there will be no property of FTX DM for local proceedings in The Bahamas to resolve.

Bahama’s Ongoing Tussle

The Securities Commission of the Bahamas initiated liquidation proceedings against FTX DM just one day before FTX Trading and more than one hundred affiliates filed for bankruptcy in the United States. Since then, the two parties have engaged in a contentious dispute regarding ownership of FTX assets and access to company information.

Sam Bankman-Fried, the founder and former CEO of FTX, was taken into custody on fraud-related charges, and his trial is scheduled to begin in October. On March 16, FTX revealed that Bankman-Fried received $2.2 billion in customer funds from the company over a time period in which the cryptocurrency exchange lost $8 billion of its customers’ funds.

Also Read: Hedera’s Patented Token Recovery System To Go Live Soon; What It Means For HBAR Price?

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.