Bahamas Liquidators And FTX Debtors Now Agree To Work Together
- The teams in charge of failing cryptocurrency exchange FTX’s bankruptcy lawsuits in the United States and the Bahamas struck a mutual cooperation agreement.
- The agreement is subject to the approval of the U.S. Bankruptcy Court in Delaware and the Supreme Court of The Bahamas.
The teams in charge of failing cryptocurrency exchange FTX’s bankruptcy lawsuits in the United States and the Bahamas struck a mutual cooperation agreement, which appears to put an end to the tensions between the two sides that arose immediately after its collapse.
In Delaware, where the company sought Chapter 11 bankruptcy protection, and the Bahamas, the location of FTX Digital Markets, parallel FTX bankruptcies are taking place. The crypto goliath filed for bankruptcy protection in November, and its 50 biggest creditors might be owed $3.1 billion.
The joint provisional liquidators and the FTX debtors announced in a statement that they had reached an understanding of how they would cooperate with one another during legal processes in each country.
Under the cooperation agreement, the parties commence work together to share information, secure and return property to their estates, coordinate litigation against third parties and explore strategic alternatives for maximizing stakeholder recoveries.FTX said in a statement
Both parties agreed on a procedure to verify inventories under its control and expressed “comfortable” in the Bahamian Securities Commission’s ability to protect digital assets.
FTX CEO John Ray III suggested that there are certain areas of contention despite the fact that the legal teams have made progress.
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.he said
The arrangement is subject to approval by the United States Bankruptcy Court in Delaware and the Bahamas Supreme Court. The next FTX court hearing in Delaware is set on January 13.
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