Greater cooperation between legal camps in FTX bankruptcies

Legal committees overseeing FTX’s bankruptcy cases in the United States and the Bahamas agree. Both groups reached a mutual agreement Cooperation. After FTX’s collapse, they disagreed bitterly, but that dispute was resolved.

Bankruptcies

Several bankruptcy proceedings are taking place at the same time. In Delaware, where FTX filed for bankruptcy protection, and in the Bahamas, where FTX Digital Markets is located.

The crypto giant entered Chapter-11 proceedings in November and reportedly owes $3.1 billion to its 50 largest creditors.

FTX’s creditors and the company’s liquidators agreed on certain terms. They don’t want to reveal anything to each other and are going to involve each other in legal proceedings in each jurisdiction.

“Under the cooperation agreement, the parties will work together to share information, return assets to their original owners, coordinate litigation against third parties, and explore strategic alternatives to maximize shareholder recovery.”

First steps

Both parties are “comfortable” with the Bahamian Securities Commission taking over management of FTX’s digital assets. Former CEO Sam Bankman-Fried expressed concern about the security of FTX systems. Thus, cryptocurrencies have shifted to the regulator.

FTX’s new CEO is John Ray III. He points out that there is still disagreement between the Bahamian and American camps.

“There are some issues we still don’t agree on, but we’ve resolved many issues and there’s a path forward to resolve the rest.”

The deal is subject to approval by the US Bankruptcy Court in Delaware and the Supreme Court of the Bahamas. The next court hearing in Delaware is scheduled for January 13.

Want to stay up to date on all the developments? Then come and visit us Telegram chatAnd don’t forget to download our Android Messages app Or iOS Messages app!