{"id":8608,"date":"2022-11-17T07:30:51","date_gmt":"2022-11-17T07:30:51","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8608"},"modified":"2022-11-17T07:30:52","modified_gmt":"2022-11-17T07:30:52","slug":"bahamian-liquidators-reject-validity-of-ftxs-us-bankruptcy-filing","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8608","title":{"rendered":"Bahamian liquidators reject validity of FTX&#8217;s US bankruptcy filing"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Brian Simms, the court-appointed provisional liquidator overseeing the bankruptcy proceedings of FTX Digital Markets in The Bahamas, has called into question the validity of a Chapter 11 bankruptcy filing by subsidiary FTX Trading and 134 other affiliates in a Delaware court on Nov. 14.<\/p>\n<p>In the Nov. 15 document, Simms filed for Chapter 15 Bankruptcy in the United States Bankruptcy Court in the Southern District of New York, which is used when a foreign representative of the debtor seeks recognition in the U.S. for a pending foreign insolvency proceeding. <\/p>\n<p>In the filing Simms notes FTX Digital is not part of the Delaware Petition, and says as the provisional liquidator he is the only one, &#8220;authorized to take any act including, but not limited to, filing the Delaware Petition,&#8221; adding:<\/p>\n<p>&#8220;The Provisional Liquidation Order divests FTX Digital&#8217;s directors&#8217; of the ability to act, or exercise any functions, for or on behalf of FTX Digital unless expressly instructed to so by me in writing.&#8221; <\/p>\n<p>The Bahamas-based lawyer argues because he &#8220;did not authorize or approve, in writing or otherwise,&#8221; he rejects the &#8220;validity of any purported attempt to place FTX Affiliates in bankruptcy.&#8221;<\/p>\n<p>He further notes, &#8220;The entire FTX Brand was ultimately operated from a single location: The Bahamas. All core management personnel likewise were located in The Bahamas.&#8221;<\/p>\n<p>FTX&#8217;s digital asset exchange was founded in May 2019 by Sam Bankman-Fried (SBF) in Hong Kong but after China&#8217;s crypto ban, SB relocated the company to the Bahamian capital of Nassau in Sept. 2021.<\/p>\n<p>Simms has not asked the court to dismiss the U.S. bankruptcy proceedings, stating &#8220;no provisional relief seeking the injunction or dismissal of the Chapter 11 is presently sought&#8221; but requests the U.S courts recognize the legal actions taking place in The Bahamas. <\/p>\n<p>However, he notes \u201cit is conceivable that the FTX Affiliates that filed Chapter 11 will be impacted by the provisional relief sought,\u201d by his filing. <\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> FTX\u2019s ongoing saga: Everything that\u2019s happened until now<\/em><\/strong><\/p>\n<p>Chapter 11 is used by businesses to help them reorganize their debts and repay creditors while continuing their operations.<\/p>\n<p>The appointment of provisional liquidators followed the Bahamian securities regulator suspending FTX\u2019s registration status and freezing its local subsidiary\u2019s assets on Nov. 10. <\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bahamian-liquidators-reject-validity-of-ftx-s-us-bankruptcy-filing\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brian Simms, the court-appointed provisional liquidator overseeing the bankruptcy proceedings of FTX Digital Markets in The Bahamas, has called into question the validity of a Chapter 11 bankruptcy filing by subsidiary FTX Trading and 134 other affiliates in a Delaware court on Nov. 14. In the Nov. 15 document, Simms filed for Chapter 15 Bankruptcy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-8608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8608"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8608\/revisions"}],"predecessor-version":[{"id":8610,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8608\/revisions\/8610"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8609"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}