By
Chimamanda U. Martha
April 19th, 2024
Meanwhile, Bahamian liquidators have challenged the legality of FTX to apply for Chapter 11 bankruptcy in Delaware.
FTX has appointed Kroll Restructuring Administration as its claim and noticing agent to help it navigate the federal bankruptcy process. The firm also shared a link with the public for easy access to all documents related to the filing.
Recall that the FTX exchange filed for Chapter 11 bankruptcy in the District of Delaware on November 11. FTX filed for a joint administration of the case with 102 other debtors, including Alameda Research.
As the claims and noticing agent, Kroll will ensure all parties are carried along with legal proceedings. The firm will also manage documentation and serve notices to all involved parties as the need may arise.
List Reveals Persons of interest, Claims in Bankruptcy Case
The exchange has identified multiple firms and people of interest as the case continues to develop. The list includes equity holders with 5% or more, bankruptcy judges, banks, contract counterparties, debtors, vendors, and governmental agencies. However, the level of involvement of each party remains unclear.
Again, the FTX has shared a list of claimants against the company. While not a complete list, the current list of eight claims includes firms like Bankhaus Scheich Wertpapierspezialist, Blockchainfonds, and Ethereal Tech. The eight firms account for $40.9 million of FTX’s debts, although FTX is estimated to owe customers and investors about $8 billion.
Bahamian Liquidators Challenge FTX Bankruptcy Case
Meanwhile, Bahamian liquidators have challenged the legality of FTX to apply for Chapter 11 bankruptcy in Delaware. Instead, the liquidators applied for a chapter 15 bankruptcy on behalf of FTX Digital Markets, the Bahamian arm of the exchange.
One of the liquidators, Brian Simms, argues that FTX Digital Markets is the parent company of the entire FTX ecosystem. As such, Simms believes all assets of FTX belong to FTX Digital Market. He further noted that all FTX activities were run from the Bahamas and that all core personnel was located in the Bahamas.
Consequently, the liquidators have requested that the US court recognize the validity of the Bahamian legal proceedings. Also, they have asked the court to recognize all orders entrusting FTX’s assets located in the US to Bahamian liquidators and to authorize urgent discovery measures.
Accordingly, a hearing has been set for Dec 13 to determine the next steps.