Bahamas-based lawyer Brian Simms, one of the provisional liquidators appointed by the Bahamas Supreme Court, said in a court filing that FTX was not authorized to file for bankruptcy in the U.S., adding that he “reject[s] the validity of any purported attempt to place FTX affiliates in bankruptcy.”
Simms’ declaration came after he and other liquidators filed for Chapter 15 bankruptcy protection on behalf of the Bahamas arm of the insolvent crypto exchange – FTX Digital Markets – in the Southern District of New York (SDNY) on Tuesday. Chapter 15 bankruptcy is typically used in cross-border operations.
Though Simms did not ask the court to dismiss the U.S. bankruptcy proceedings, he requested that the court recognize the validity of the Bahamian legal actions, which he said could “impact” U.S. proceedings for the other FTX-controlled entities.
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