FTX sued for its assets in the Bahamas.
FTXis suing the Bahamas branch’s liquidators, claiming that FTX Digital Markets falsely claimed ownership of the exchange and actually created a “front” to defraud customers.
FTX Awaits Judgment by Lawsuit
bankrupt crypto exchange, FTX Digital MarketsIt requests a decision stating that ‘s company has no rights in the company’s presence in the Bahamas.
Founded by Sam Bankman-Freid, FTX has faced multiple legal proceedings since filing for bankruptcy in November. The new management, who took control of FTX, continues to work to protect the company’s assets.
FTX’s new management is seeking a declaratory order from the U.S. Bankruptcy Court for the District of Delaware stating that FTX Digital Markets does not own funds from FTX borrowers.
Since the crypto giant filed for bankruptcy protection in November, FTX debtors have often been at odds with a team of attorneys tasked with liquidating the Bahamian entity, known as joint temporary liquidators under Bahamian law. The Bahamas still controls at least hundreds of millions of dollars worth of assets.
