Bankrupt crypto exchange FTX is suing the liquidators of its Bahamas entity, saying FTX Digital Markets wrongly claims to own the exchange and was actually “a front to facilitate a conspiracy” to defraud customers.
FTX's new management wants a declaratory judgment from the U.S. Bankruptcy Court for the District of Delaware that says FTX Digital Markets “has no ownership” in any of the FTX debtors’ property.
The FTX debtors have often been at odds with the team of lawyers, known as joint provisional liquidators under Bahamian law, tasked with winding down its Bahamian entity since the crypto behemoth filed for bankruptcy protection in November. The Bahamian entity still controls at least hundreds of millions of dollars-worth of assets.
“If the FTX debtors succeed in this adversary proceeding, there will be no property of FTX DM for local proceedings in The Bahamas to resolve,” the filing says.
All Comments