Bahamas Liquidators Reject Validity of FTX's U.S. Bankruptcy Filing
Provisional liquidator overseeing FTX Digital Markets bankruptcy proceedings says FTX not allowed to file for bankruptcy in states United without his approval.
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Brian Simms, the court-appointed interim liquidator overseeing the bankruptcy proceedings of FTX Digital Markets in the Bahamas, has questioned the validity of a Chapter 11 bankruptcy filing for subsidiary FTX Trading and of 134 other affiliates in a Delaware court on November 14.
In the Nov. 15 filing, Simms filed for Chapter 15 bankruptcy in the United States Bankruptcy Court in the Southern District of New York, which is used when a foreign representative of the debtor seeks recognition in the United States of a pending foreign insolvency. in progress.
In the filing, Simms notes that FTX Digital is not a party to the Delaware petition, and states that as provisional liquidator, he is the only one "authorized to take any action, including, but not limited thereto, the filing of the Delaware petition," adding:
"The Interim Liquidation Order deprives the directors of FTX Digital of the ability to act or perform any duties for or on behalf of FTX Digital, except as expressly instructed by me in writing."
The Bahamian-based lawyer argues that he "did not authorize or approve, in writing or otherwise", he rejects the "validity of any alleged attempt to put FTX affiliates into bankruptcy".
p>He further notes, "The entire FTX brand was ultimately operated from one location: The Bahamas. All senior management personnel were also located in the Bahamas."
The FTX digital asset exchange was founded in May 2019 by Sam Bankman-Fried (SBF) in Hong Kong, but after China's crypto ban, SB moved the business to the capital Bahamian from Nassau in September 2021.
Simms did not ask the court to dismiss the U.S. bankruptcy proceeding, saying "no interim relief seeking the injunction...
Provisional liquidator overseeing FTX Digital Markets bankruptcy proceedings says FTX not allowed to file for bankruptcy in states United without his approval.
New
Brian Simms, the court-appointed interim liquidator overseeing the bankruptcy proceedings of FTX Digital Markets in the Bahamas, has questioned the validity of a Chapter 11 bankruptcy filing for subsidiary FTX Trading and of 134 other affiliates in a Delaware court on November 14.
In the Nov. 15 filing, Simms filed for Chapter 15 bankruptcy in the United States Bankruptcy Court in the Southern District of New York, which is used when a foreign representative of the debtor seeks recognition in the United States of a pending foreign insolvency. in progress.
In the filing, Simms notes that FTX Digital is not a party to the Delaware petition, and states that as provisional liquidator, he is the only one "authorized to take any action, including, but not limited thereto, the filing of the Delaware petition," adding:
"The Interim Liquidation Order deprives the directors of FTX Digital of the ability to act or perform any duties for or on behalf of FTX Digital, except as expressly instructed by me in writing."
The Bahamian-based lawyer argues that he "did not authorize or approve, in writing or otherwise", he rejects the "validity of any alleged attempt to put FTX affiliates into bankruptcy".
p>He further notes, "The entire FTX brand was ultimately operated from one location: The Bahamas. All senior management personnel were also located in the Bahamas."
The FTX digital asset exchange was founded in May 2019 by Sam Bankman-Fried (SBF) in Hong Kong, but after China's crypto ban, SB moved the business to the capital Bahamian from Nassau in September 2021.
Simms did not ask the court to dismiss the U.S. bankruptcy proceeding, saying "no interim relief seeking the injunction...
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