FTX Bankruptcy Case Sees New Developments: Bahamas Supreme Court Appoints Joint Official Liquidators for FTX Digital Markets, a Bahamian subsidiary of FTX, to liquidate $250 million in real estate and $1.2 billion in digital assets.
According to an email sent by international accounting firm PwC, representing FTX’s Bahamian subsidiary FTX Digital Markets, to creditors, the Bahamas Supreme Court will soon liquidate a portion of FTX assets held by FTX Digital Markets, including $250 million in real estate and $1.2 billion in digital assets.
The email mentioned that the Bahamas Supreme Court signed an order on October 10th to liquidate FTX Digital Markets, officially appointing Brian C. Simms KC, Peter J. Greaves, and Kevin G. Cambridge as joint official liquidators (JOL) for FTX Digital Markets.
The court has granted the JOL the power to realize assets, initiate claims and settlement procedures, and distribute assets to customers and creditors of FTX Digital in accordance with the law.
The email stated that after initiating mediation procedures between FTX Digital Markets and other FTX group entities designated as debtors under Chapter 11 of the US Bankruptcy Code, the JOL has engaged in months of negotiations to resolve all disputes between the parties and seek mutual support for their respective bankruptcy proceedings.
The JOL stated that negotiations between FTX Digital Markets and other FTX group entities have made “meaningful progress,” and once the negotiations are concluded, the JOL will start handling claims from customers and creditors, who will have the right to file claims in the FTX Digital Markets liquidation and prove the amount of their claims in order to receive any potential compensation distribution.
FTX’s Latest Restructuring Proposal Sparks Outrage
Earlier, on the 16th, FTX’s restructuring team submitted a revised Chapter 11 restructuring plan to the US Bankruptcy Court in Delaware, which could result in potential loss of millions of dollars in revenue for creditors. The plan values FTX debtor assets retrospectively to the cash value at the time of FTX’s bankruptcy application in November 2022. Since then, the cryptocurrency market has significantly increased, with Bitcoin prices going from around $17,000 during the bankruptcy application period to over $40,000 currently. The overall market value of cryptocurrencies has also increased from around $856 billion to $1.6 trillion. Therefore, if the plan is approved, all creditors may face losses.
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FTX’s Latest Restructuring Proposal Sparks Outrage! Compensation Based on Last Year’s Bankruptcy Market Price, with Bitcoin at only $17,000…
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FTX
FTX Digital Markets
Bahamas Supreme Court
Liquidation