Debtors affiliated with cryptocurrency exchange FTX, which filed for bankruptcy protection in the United States in November last year, announced on Tuesday that they had reached a global agreement with Bahamian subsidiary FTX Digital Markets, which was undergoing separate liquidation procedures.
“This agreement is a new and mutually beneficial solution to the complex cross-border legal issues raised by the FTX Group collapse situation,” the debtors said in a statement. This must be approved by the U.S. Bankruptcy Court for the District of Delaware and the Supreme Court of the Bahamas.
FTX Obligors and FTX Digital Markets “pool assets, establish reserves, and coordinate the timing and amount of distributions” for the purpose of making distributions to FTX.com customers. FTX.com customers must select an entity to submit claims to.
The Bahamas subsidiary will also “adopt the same know-your-customer procedures to ensure compliance with applicable laws.” USA, Bahamas and all other applicable jurisdictions.”
real estate holdings
FTX Digital Markets will take the lead in domestic FTX real estate liquidation.
“The global settlement agreement is another important milestone for FTX debtors,” said John. J. Ray III, CEO and Chief Restructuring Officer of FTX. “The unique challenges posed by conflicting filings by FTX Debtors and FTX Digital Marketplace were some of the most challenging challenges the team has faced.”
According to the statement, FTX debtors and FTT interests in FTX digital markets are considered assets and are not subject to any recovery.
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About the author
Anna is a senior policy reporter and assistant editor at The Block. She has a background in political journalism and has covered Russian civil society for various media outlets in Moscow, including her award-winning newspaper, Novaya Gazeta. Before joining The Block, Anna spent the last five years at CoinDesk, researching global cryptocurrency policy and adoption. Anna says she owns Bitcoin and gift NFTs that have sentimental value.