FTX resolves dispute with Bahamian liquidators

By Dietrich Knauth

(Reuters) -Bankrupt crypto alternate FTX Buying and selling on Tuesday introduced a settlement with liquidators for FTX’s Bahamas unit, resolving a long-simmering dispute over whether or not the corporate’s U.S. chapter proceedings ought to take priority over the Bahamian liquidation.

FTX and FTX Digital Markets have agreed to pool their belongings and harmonize their strategy to valuing buyer claims to make sure equal therapy for patrons in both nation’s insolvency course of. The settlement will enable most prospects of FTX.com’s worldwide crypto alternate to decide on whether or not to hunt compensation from both the U.S. chapter or the Bahamian liquidation, based on FTX.

FTX’s CEO John Ray, who took management of the corporate from convicted FTX founder Sam Bankman-Fried, mentioned that the settlement is a vital milestone within the firm’s effort to repay prospects.

“The distinctive challenges raised by the conflicting filings of the FTX Debtors and FTX Digital Markets have been among the hardest the workforce has confronted,” Ray mentioned in a press release. “However we acknowledged at first that we have now an overlapping constituency: FTX.com prospects.”

FTX had been at odds with Bahamian officers ever since submitting for chapter safety on Nov. 11, with a gap in its stability sheet that left its 9 million prospects dealing with billions in potential losses. FTX had sued the Bahamian liquidators in March, looking for a ruling that the liquidators had wrongly claimed possession of the alternate’s belongings.