FTX Bankruptcy Case Sees New Developments as Bahamian Court Appoints Liquidators
The Supreme Court of the Bahamas has recently appointed the joint official liquidators (JOL) for FTX Digital Markets, a subsidiary of FTX, to liquidate $250 million worth of real estate and $1.2 billion worth of digital assets.
According to an email sent by international accounting firm PwC, representing the bankrupt cryptocurrency exchange FTX’s Bahamian subsidiary FTX Digital Markets, the Bahamian Supreme Court will soon begin the process of liquidating assets held by FTX Digital Markets, including $250 million worth of real estate and $1.2 billion worth of digital assets.
The email stated that the Bahamian Supreme Court had signed the order to liquidate FTX Digital Markets on October 10th, officially appointing Brian C. Simms KC, Peter J. Greaves, and Kevin G. Cambridge as the joint official liquidators (JOL).
The court has granted the JOL the power to realize the assets of FTX Digital for the benefit of its customers and creditors, initiate claims and settlement procedures, and distribute assets to customers and creditors when appropriate.
The email mentioned that after initiating mediation proceedings between FTX Digital Markets and other FTX group entities designated as debtors under Chapter 11 of the US Bankruptcy Code, the JOL has engaged in months-long negotiations to resolve all disputes between the parties and seek mutual support for their respective bankruptcy proceedings.
The JOL stated that negotiations between FTX Digital Markets and other FTX group entities have made “meaningful progress,” and once the negotiations are concluded, the JOL will begin the process of handling claims from customers and creditors. Customers and creditors will have the right to file claims in the liquidation of FTX Digital Markets and prove the amount of their claims to receive any potential compensation distribution.
FTX Faces Backlash for Latest Restructuring Proposal
Previously, on the 16th, the FTX restructuring team submitted a revised Chapter 11 reorganization plan to the US Bankruptcy Court in Delaware. The plan values customer asset claims based on the cash value at the time of FTX’s bankruptcy application in November 2022. This decision could result in potential losses of millions of dollars for creditors.
Since FTX filed for bankruptcy in November last year, the cryptocurrency market has significantly increased in value. The price of Bitcoin during the bankruptcy application period was around $17,000, but it has now exceeded $40,000. The total market value of cryptocurrencies has increased from approximately $856 billion to $1.6 trillion. If this plan is approved, all creditors may face losses.
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Tags:
FTX
FTX Digital Markets
Bahamian Supreme Court
Liquidation