FTX U.S. and Bahamas Fight Worsens Amidst Hearing This Week: Control of Funds at Stake
The legal battle between FTX's new U.S. owners and regulators in The Bahamas has intensified, culminating in a crucial court hearing this week. Bahamian officials and FTX's new U.S. leadership are battling it out over the control of funds seized by Bahamian authorities amid the crypto exchange's bankruptcy, a dispute initially reported by Coindesk. This escalating conflict highlights the complexities of international bankruptcy proceedings when dealing with cryptocurrency assets.
The crux of the issue revolves around the location and control of FTX assets. FTX had accused the Bahamas of working with Bankman-Fried around the time of the November 10 US bankruptcy filing to improperly seize cryptocurrency wallets. FTX's Bahamian subsidiary FTX Digital Markets Ltd. filed for chapter 15 bankruptcy proceedings on Nov. 15, asking for cooperation between U.S. courts and foreign.
Recent developments suggest progress towards resolution, however the underlying tension remains. (Reuters) -Bankrupt crypto exchange FTX Trading on Tuesday announced a settlement with liquidators for FTX's Bahamas unit, resolving a long-simmering dispute over. This followed weeks of bickering, where teams in the U.S. and The Bahamas had tentatively agreed to cooperate in bankruptcy proceedings against FTX. In a statement, it was confirmed both sides were seeking a collaborative approach.
Bankrupt crypto exchange FTX Trading on Tuesday announced a settlement with liquidators for FTX's Bahamas unit, resolving a long-simmering dispute over whether the. Despite this settlement, the overall landscape remains fraught with legal challenges, with FTX’s Bahamas liquidators yesterday accusing a failed crypto bank’s administrator of “putting the cart before the horse” in an escalating legal battle.
The outcome of this week's hearing could significantly impact the recovery of assets for creditors and the future of FTX's international bankruptcy proceedings. Stay tuned for updates as the FTX U.S. and Bahamas fight continues to unfold.