FTX's Bahamas Branch Streamlines Actions with U.S. Bankruptcy Team Agreement

• Settlement Reached in the Liquidation of FTX's Bahamas Unit
• Details of the Agreement Between FTX Digital Markets and FTX Debtors
• Alleged Mismanagement of Funds
• Aftermath of the FTX Collapse

Settlement Reached in the Liquidation of FTX's Bahamas Unit

A settlement has been reached between the liquidators of FTX$3.28 -5.38%'s defunct Bahamas unit and the U.S. bankruptcy team. This agreement facilitates the consolidation and subsequent redistribution of assets to the global customer base of FTX.com.

Details of the Agreement Between FTX Digital Markets and FTX Debtors

The agreement is contingent upon the approval of the Supreme Court of the Bahamas and the U.S. Bankruptcy Court for the District of Delaware. The involved parties anticipate seeking these endorsements promptly.

Once the courts grant approval, FTX Digital Markets, the Bahamas branch, will spearhead the realization of tangible assets like real estate in the Bahamas. Meanwhile, the responsibility for all other recovery activities, including potential sale transactions of the FTX.com exchange and the realization of intellectual property, will lie with FTX Debtors.

Alleged Mismanagement of Funds

The Bahamas unit allegedly blended client and corporate funds to such an extent that it could be challenging to distinctly identify client monies from general corporate funds, as per a report from February.

Aftermath of the FTX Collapse

The FTX implosion and that of its associated units caused significant ripples throughout the crypto industry. Its founder, Sam Bankman-Fried, was recently convicted of fraud in a U.S. court.

Edited by Jonathan Stoker