FTX Digital Markets, the Bahamas arm of the now defunct crypto exchange, has filed for Chapter 15 bankruptcy proceedings in the Southern District of New York.

The document, registered late Tuesday night, follows the appointment of insolvency liquidators in the Bahamas earlier that day, and an equivalent case for the exchange’s U.S. arm, FTX.US, which was filed last Friday.

The procedure is intended to allow orderly wind-up of cross-border enterprises so that funds can be returned to creditors as fully as possible – potentially including the site's many regular users.

(By Jack Schickler)