FTX's Bahamas Wing Reaches Agreement With U.S. Bankruptcy Team, Streamlining Future Actions

This deal will pave the way for assets to be pooled and distributed to FTX.com customers.

AccessTimeIconDec 19, 2023 at 4:18 p.m. UTC
Updated Mar 8, 2024 at 6:53 p.m. UTC

The liquidators of failed crypto exchange FTX's Bahamas unit reached an agreement with the U.S. bankruptcy team that paves the way for assets to be pooled and redistributed to FTX.com's customers worldwide.

The deal between FTX Digital Markets, the Bahamas unit, and FTX Debtors is subject to approvals from the Supreme Court of the Bahamas and the U.S. Bankruptcy Court for the District of Delaware – which the parties will seek soon, according to a press release on Tuesday.

Once the courts have agreed, FTX Digital Markets will take the lead in the realization of real estate and other assets in the Bahamas and FTX Debtors will take the operational lead in "all other recovery activities including any sale transaction involving the FTX.com exchange and realisation of intellectual property."

The Bahamas unit allegedly commingled client and corporate funds in such a way that it may not be "possible to clearly identify sums that constitute client monies as opposed to general corporate funds," according to a February report.

The collapse of FTX and its affiliates sent shockwaves across the crypto industry and its founder, Sam Bankman-Fried, was recently found guilty of fraud in a U.S. trial.

Edited by Sheldon Reback.


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.