FTX Is Suing Liquidators Of Its Bahamas Entity

According to The Block, FTX is suing the liquidators of its Bahamas entity, and FTX’s new management wants a declaratory judgment from the U.S. Bankruptcy Court of Delaware, saying that FTX Digital Markets has “no title” to the property of any FTX debtors, and claims that FTX Digital Markets is a "front" to defraud clients. Plaintiffs in the countersuit include FTX.US, Alameda Research, and West Realm Shires (a holding company formed by former FTX head Sam Bankman-Fried). They name FTX Digital Markets and its joint provisional liquidators Brian Simms, Kevin Cambridge and Peter Greaves as defendants. According to the lawsuit, FTX Digital Markets claims to be the “constructive owner of the FTX.com property” and says ownership disputes should be resolved in the Bahamas. FTX debtors disagree with this view.