FTX Sues The Liquidators of The Bahamian FTX Digital Markets

FTX Sues The Liquidators of The Bahamian FTX Digital Markets

The bankrupt FTX cryptocurrency exchange has sued the Bahamian company FTX Digital Markets and its liquidators, accusing them of wrongfully claiming the assets of the exchange, The Block reports.

FTX managers stated in the lawsuit that the FTX crypto exchange operator, FTX Digital Markets, claims the cryptocurrency and intellectual property of the platform FTX.com , but does not have the right to do so, since it was originally created “as a cover for a conspiracy to deceive the exchange’s customers.”

Meanwhile, FTX Digital Markets claims in the lawsuit that it is the owner of the property FTX.com and that the ownership dispute should be settled in the Bahamas. FTX bankruptcy managers in the USA, for their part, claim that the Bahamian liquidators inherited only a “corporate shell”, which they use to fight for the right to conduct bankruptcy proceedings in their jurisdiction, and these “unfounded” claims will harm FTX customers and creditors.

According to FTX lawyers, FTX Digital Markets was “an offshore haven for a fraudulent scheme and a channel through which the results of this fraudulent scheme could be transmitted to insiders and third parties.”

FTX has been feuding with the Bahamian authorities since it filed for protection from creditors on November 11. The Securities Commission of the Bahamas began the liquidation procedure of FTX Digital Markets the day before the filing for bankruptcy by FTX group of companies from more than 100 affiliated firms in the United States. Both sides argued over ownership of FTX assets.

On November 11, the Securities Commission of the Bahamas froze the funds of FTX Digital Markets, and the next day ordered the transfer of all digital assets of FTX Digital Markets to its wallet. The assets of the cryptoplatform are stored on the accounts of the regulator, the value of which at the date of their transfer was more than $ 3.5 billion.

In early December, the authorities of the Bahamas tried to regain control of the local real estate acquired by FTX executives, which is now being taken into account during the bankruptcy procedure of the exchange in the United States. Bahamian regulators told the federal bankruptcy judge of Delaware that they could not allow the US court to dispose of the fate of this property, because it is inefficient from an administrative point of view and would violate the laws of the Bahamas.

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