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Market News FTX’s Bahamas liquidators “reject the validity” of US bankruptcy

FTX’s Bahamas liquidators “reject the validity” of US bankruptcy

In court documents submitted in the US late Tuesday, FTX's Bahamas-based liquidators stated that they "dispute the legality" of the crypto exchange's bankruptcy procedures.

Skylar Shaw

2022-11-17

639

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In court documents submitted in the US late Tuesday, FTX's Bahamas-based liquidators stated that they "dispute the legality" of the crypto exchange's bankruptcy procedures.

On November 11, FTX and 130 affiliates filed for bankruptcy in the US, resulting in estimated losses of $1 million in consumers and other investors in the billions of dollars. However, its Bahamas subsidiary FTX Digital Markets was the one to initiate the liquidation process. Late on Tuesday, FTX's court appointed liquidators stated that their case may "affect" the company's efforts to restructure in the United States.