Buy $GGsBreaking: FTX Sues Bahamian Liquidators Over Affiliate Company; Calls It “Fraudulent Enterprise”
FTX News: What comes as the latest twist in the FTX story, the bankrupt crypto exchange on Sunday filed a lawsuit against the Bahamian lawyers who are in charge of the liquidation of its affiliate FTX Digital Markets. FTX is reportedly accusing the liquidators of making false claims of ownership over the exchange’s assets.
FTX Sues Bahamian Liquidators
In the lawsuit filed by the United States-based bankruptcy team of FTX — managed by the company’s newly appointed CEO John J. Ray III — stated that the liquidators were attempting to stake a claim to FTX.com’s cryptocurrencies, intellectual property, and customer relationships.
Read More: Why Are Crypto Stocks Like Coinbase, Microstrategy & Others Up Today?
FTX referred to FTX DM as a “fraudulent enterprise.” FTX DM had initially been established just as a local service firm, and it did not possess the FTX.com exchange or any of the seized cryptocurrencies. Since FTX submitted its petition for protection from creditors on November 11, the company has been at conflict with officials in the Bahamas.
The filing stated that,
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.
Bahama’s Ongoing Tussle
The Securities Commission of the Bahamas initiated liquidation proceedings against FTX DM just one day before FTX Trading and more than one hundred affiliates filed for bankruptcy in the United States. Since then, the two parties have engaged in a contentious dispute regarding ownership of FTX assets and access to company information.
Sam Bankman-Fried, the founder and former CEO of FTX, was taken into custody on fraud-related charges, and his trial is scheduled to begin in October. On March 16, FTX revealed that Bankman-Fried received $2.2 billion in customer funds from the company over a time period in which the cryptocurrency exchange lost $8 billion of its customers’ funds.
Also Read: Hedera’s Patented Token Recovery System To Go Live Soon; What It Means For HBAR Price?
Play 10,000+ Casino Games at BC Game with Ease
- Instant Deposits And Withdrawals
- Crypto Casino And Sports Betting
- Exclusive Bonuses And Rewards
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- US-Iran War: Reports Confirm Bombings In UAE, Bahrain and Kuwait As Crypto Market Makes Recovery
- XRP Price Dips on US-Iran Conflict, But Capitulation Signals March Rebound
- Crypto Market at Risk as U.S.–Iran War Threatens Inflation With Oil Price Surge
- Polymarket U.S.–Iran Strike Bets Fuel Insider Trading Speculation as Crypto Traders Net $1.2M
- Cardano’s DeFi TVL Climbs as USDCx Stablecoin Launches on Network
- Top Analyst Predicts Pi Network Price Bottom, Flags Key Catalysts
- Will Ethereum Price Hold $1,900 Level After Five Weeks of $563M ETF Selling?
- Top 2 Price Predictions Ethereum and Solana Ahead of March 1 Clarity Act Stablecoin Deadline
- Pi Network Price Prediction Ahead of Protocol Upgrades Deadline on March 1
- XRP Price Outlook As Jane Street Lawsuit Sparks Shift in Morning Sell-Off Trend
- Dogecoin, Cardano, and Chainlink Price Prediction As Crypto Market Rebounds
