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FTX Bankruptcy: Bahamas Liquidators Transfer Case to Delawar...
News

FTX Bankruptcy: Bahamas Liquidators Transfer Case to Delaware, Creditor Names Will Be Redacted

The judge overseeing the bankruptcy case of fallen crypto exchange FTX today agreed to keep names and addresses of the top 50 creditors—owed approximately $3.1 billion—redacted for now. 

Judge John Dorsey made the decision Tuesday at the Delaware bankruptcy court during FTX’s first hearing. 

Judge Dorsey also said he would formally move a Chapter 15 bankruptcy case filed by Bahamian liquidators from New York to Delaware. Regulators in the Bahamas previously wanted to take control of FTX’s bankruptcy proceedings. 

James Bromley, counsel to FTX’s new management, described the fall of the exchange as one of the “most abrupt and difficult collapses in the history of corporate America,” during the highly publicized case. 

A document filed Saturday by FTX showed the exchange owes $3.1 billion to its top 50 creditors. Bromley added that ex-FTX CEO Sam Bankman-Fried also used digital asset exchange FTX as his “personal fiefdom.”



FTX lost billions of dollars of investors’ cash when it imploded earlier this month.

The exchange was allegedly using client money to make risky investment bets through Alameda Research, a trading firm founded by Bankman-Fried.

After a bank run on the exchange, the company was forced to admit it did not hold one-to-one reserves of customer assets, which culminated in a freezing of withdrawals and subsequent bankruptcy filing.

This story is developing and will be updated.

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Source: Decrypt.co

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