Liquidators of FTX Digital Markets Deny Validity of FTX US Bankruptcy Proceedings

The liquidators of FTX’s Bahamian subsidiary, FTX Digital Markets, have asked a New York City court to recognize its bankruptcy in the Bahamas, saying they “refuse to recognize” the validity of the cryptocurrency exchange’s U.S. bankruptcy proceedings, Reuters reports. Bahamas liquidators appointed by the Bahamas Securities Commission on Nov. 10 have filed a Chapter 15 application in U.S. Bankruptcy Court in New York, asking the court to help them obtain records from FTX and block asset transfers to protect the Bahamas company’s creditors. The liquidator of FTX Digital Markets stated that it is not seeking to dissolve the US bankruptcy proceedings, but its actions may affect FTX’s early US bankruptcy reorganization, and the US proceedings are not authorized by Bahamian law.