• FTX and its affiliated debtors have reached a cooperation agreement to streamline the liquidation of FTX’s subsidiary in the Bahamas.
• The agreement involves harmonizing the parallel FTX liquidation processes in Delaware and the Bahamas.
• FTX US and Bahamas groups have also affirmed a procedure to clarify the inventory underneath its regulation.
FTX, a bankrupt cryptocurrency exchange, and its affiliated debtors have entered into a cooperation agreement to efficiently streamline the liquidation of FTX’s subsidiary located in the Bahamas. The agreement, which was made due to the parallel FTX liquidation processes taking place in Delaware, where the company sought Chapter 11 bankruptcy protection, and the Bahamas, the location of FTX Digital Markets, seeks to harmonize the two jurisdictions involved in order to protect the interests of all parties affiliated with the exchange.
The joint interim trustees and the FTX debtors released a press statement, detailing their understanding of how they would cooperate in each jurisdiction. They also announced a procedure to clarify the inventory underneath their regulation, and are confident that the Bahamian Securities Commission (BSC) has protected their virtual assets.
John Ray III, FTX liquidations CEO, suggested that there were still some differences present in the disagreements between parties, despite their agreement. He added that there were still some gatherings of minds needed in order to bring the two sides to a mutual understanding.
The details of the agreement remain undisclosed, though it is believed that the agreement will facilitate a smoother liquidation process for FTX and its debtors. This is likely to be welcomed by FTX customers, who were left in limbo after the exchange filed for Chapter 11 bankruptcy protection in November, owing $3.1 billion to its 50 biggest lenders.