FTX liquidators’ legal team urges cooperation with Bahamian authorities amid favoritism allegations

A lawyer representing provisional liquidators overseeing FTX’s assets has pushed back against allegations officials in the Bahamas were using the collapse of the crypto exchange to benefit its residents first.

In a Dec. 16 hearing for FTX Trading’s bankruptcy proceedings, White & Case partner Jason Zakia said allegations made by debtors concerning FTX assets and Bahamian authorities were “wholly without merit”. The legal team represented provisional liquidators whose appointments werein November and had “no involvement” in the downfall of FTX prior to its bankruptcy, according to Zakia.

“In any international case like this, there are a multitude of jurisdictions that have legitimate and important interests and that certainly includes the Bahamas,” said Zakia. “The Bahamian legal system is an independent legal system that should be respected. There have been a lot of allegations and aspersions thrown around directed at the Bahamas — the Bahamian government, the Bahamian legal system.”“One of the allegations [...

FTX filed for bankruptcy under Chapter 11 in the United States District of Delaware on Nov. 11. The bankruptcy court has held a few hearings as part of the proceedings dealing with how the firm’s assets may be handled amid interests from FTX debtors and creditors. The next hearing available to the public is expected on Jan. 11, which will likely

Agreed! Let's make sure we hodl the line and protect the integrity of the crypto-ecosystem. It's essential that we buidl trust between users and regulators. DeFi crypto

“One of the allegations [...] that Bahamians were somehow facilitating payments off the system to Bahamian residents in preference to other creditors. When you look at the evidence, they have that exactly backwards', said White & Case partner Jason Zakia.

Hope they will drag it for a long time

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FTX wants permission to sell FTX Japan and FTX Europe as well as LedgerXFTX has asked the Delaware Bankruptcy Court for permission to sell LedgerX, Embed, FTX Japan and FTX Europe, after CFTC Chairman Rostin Bernham noted that LedgerX has more cash than the rest of the debtors combined. It's getting worst. Ho ho ho They should have thought of that earlier
Source: Cointelegraph - 🏆 562. / 51 Read more »

Top FTX Group Exec Tipped Off Bahamian Authorities About Possible FraudA top executive of the FTX group of companies told Bahamas police that funds were commingled between the crypto exchange and its sister trading firm Alameda Research as early as Nov. 9, court documents show. CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discusses the latest developments in FTX's bankruptcy. FTX_Official nikhileshde trondao LOL Nov 9th ... yeah like two years ago. FTX_Official nikhileshde trondao Love the spin “as early as”…quite the opposite very late in the day after he realized it’s game over and 2 days before filing for bankruptcy? Surely these shenanigans started waaaaaay before Nov 9 FTX_Official nikhileshde trondao I like coding
Source: CoinDesk - 🏆 291. / 63 Read more »