The FTX Interim Administration is asking U.S. Bankruptcy Judge John Dorsey to intervene and confirm that the assets of exchange founder Sam Bankman-Fried and other employees placed in the Bahamas unit were “fraudulent transfers” and , therefore rightfully belong to FTX.
Lawyers representing the FTX Group describe the Bahamian division as an economic and legal “dummy” created as a “front”. The liquidators of the Bahamas exchange “continue to make unreasonable demands that will harm FTX.com customers and other creditors,” according to a statement from FTX’s interim administration.
The liquidators of FTX Digital Markets’ Bahamian unit, which is not bankrupt, were claiming the assets of FTX.com. This is stated in the court documents of the company.
The crash of FTX in November 2022 shocked the entire cryptocurrency industry. The founder of the exchange, Sam Bankman-Fried, is accused of eight criminal offenses, but does not admit his guilt. Now the former head is released on bail in the amount of $ 250 million.
FTX interim managers were only able to find $2.7 billion of the $11.6 billion that should have been in client accounts. Part of the shortfall can be attributed to Alameda Research, which borrowed $9.3 billion from customer accounts before the crash.
It was recently revealed that the founders and key employees of the failing FTX received $3.2 billion in payments and loans, mostly from a subsidiary of Alameda Research.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
