Nov 17, 2022 09:45 UTC
Nov 17, 2022 at 09:45 UTC
Bahamian liquidators reject validity of FTX’s U.S. bankruptcy filing
The conditional liquidator overseeing the FTX Digital Markets bankruptcy proceedings says FTX wasn’t licensed to file for bankruptcy within the U.S while not his approval.
Brian Simms, the court-appointed conditional liquidator overseeing the bankruptcy proceedings of FTX Digital Markets within the Bahama Islands, has questioned the validity of a Chapter 11 bankruptcy filing by subsidiary FTX commercialism and 134 different affiliates in a Delaware court on Nov. 14.
In the Nov. 15 document, Simms filed for Chapter 15 Bankruptcy within the US Bankruptcy Court within the Southern District of New York, that is employed once as an overseas representative of someone seeking recognition within the U.S. for a pending foreign economic condition continuing.
In the filing Simms notes FTX Digital isn’t a part of the Delaware Petition, and says because the conditional liquidator he’s the sole one, “authorized to require any act as well as, however not restricted to, filing the Delaware Petition,” adding:
“The provisional Liquidation Order divests FTX Digital’s directors’ of the flexibility to act, or exercise any functions, for or on behalf of FTX Digital unless expressly taught to this by Pine Tree State in writing.”
The Bahamas-based professional argues as a result that he “did not authorize or approve, in writing or otherwise,” he rejects the “validity of any reputed conceive to place FTX Affiliates in bankruptcy.”
He further notes, “The entire FTX whole was ultimately operated from one location: The Bahama Islands. All core personnel likewise were set within the Bahamas.”
FTX’s digital asset exchange was supported in might 2019 by SAM Bankman-Fried (SBF) in the city however when China’s crypto ban, SB resettled the corporation to the Bahamian capital of Nassau in Sept. 2021.
Simms has not asked the court to dismiss the U.S. bankruptcy proceedings, stating “no conditional relief seeking the injunction or dismissal of the Chapter 11 is presently sought” however requests the U.S courts acknowledge the legal actions happening within the Bahama Islands.
However, he notes “it is conceivable that the FTX Affiliates that filed Chapter 11 are wedged by the conditional relief wanted,” by his filing.
Chapter 11 is employed by businesses to assist them reorganize their debts and repay creditors whereas they continue their operations.
The appointment of conditional liquidators followed the Bahamian securities regulator suspending FTX’s registration standing and freezing its native subsidiary’s assets on Nov. 10.