FTX Digital Markets Files For Chapter 15 Bankruptcy Protection
The Bahamas-based subsidiary of the defunct cryptocurrency exchange FTX, known as FTX Digital Markets, applied for Chapter 15 bankruptcy protection on Tuesday in the Southern District Court of New York.
The filing, which was recorded late Tuesday night, comes after the exchange’s U.S. affiliate, FTX US, filed a similar complaint last Friday, and insolvency liquidators were appointed in the Bahamas earlier that day.
The process is designed to enable the orderly closure of international businesses so that money may be restored to creditors as completely as possible, which may include the site’s numerous regular users.
Four days after FTX Trading and 134 other affiliates and subsidiaries (FTX Group) filed for Chapter 11 bankruptcy relief in the District Court of Delaware, the Chapter 15 filing was made. A Chapter 15 filing enables a foreign debtor to seek bankruptcy relief through the American legal system.
The Supreme Court of the Bahamas previously approved provisional liquidators to oversee FTX Digital’s assets.
The FTX Digital Markets’ assets were frozen last week, and the Securities Commission of the Bahamas also stopped the company’s registration. The commission is closely collaborating with financial investigators to determine whether any illegal activity took place at the corporation.
Despite bankruptcy protection filing and investigations, Sam Bankman-Fried still wants to raise funds. The former FTX CEO recently made some cryptic tweets.
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