Caribbean Today News

FTX Trading Ltd reaches global settlement agreement with Bahamian liquidators

NASSAU, BAHAMAS — FTX Trading Ltd has announced that it has successfully reached a settlement with the official liquidators overseeing the bankruptcy proceedings of its Bahamas unit, FTX Digital Markets.

The terms of the settlement are documented in a comprehensive Global Settlement Agreement, officially signed by the involved parties on Tuesday. The agreement is now pending approval from the U.S. Bankruptcy Court for the District of Delaware and the Supreme Court of The Bahamas. The parties involved are committed to promptly seeking this approval.

In a collaborative effort, FTX and FTX Digital Markets have decided to pool their assets and align their methods for assessing customer claims. This strategic move aims to ensure equitable treatment for customers involved in the insolvency process in either the United States or the Bahamas.

Under the settlement agreed to on Tuesday, customers of FTX.com’s international crypto exchange will have the flexibility to choose whether to pursue repayment through the U.S. bankruptcy proceedings or the Bahamian liquidation process, providing them with options for resolution, as outlined by FTX.

The Global Settlement Agreement encompasses crucial provisions between the FTX Debtors and FTX Digital Markets, specifically addressing the monetization of assets within the FTX group and inter-estate funding. Subject to the approval of both Courts, FTX Digital Markets is slated to assume operational leadership for maximizing the value of real estate and other assets in The Bahamas and for pursuing identified litigation and avoidance actions outlined in the Global Settlement Agreement.

“The Global Settlement Agreement reflects a novel and mutually beneficial solution to the complex cross-border legal issues raised by the circumstances of the collapse of the FTX group,” the debtors said in a statement.

John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, emphasized the significance of the Global Settlement Agreement, hailing it as a critical milestone. He acknowledged the formidable challenges posed by conflicting filings but underscored the shared focus on a common constituency: FTX.com customers. The settlement, in alignment with customer interests, is seen as a notable achievement that also recognizes the pivotal roles played by the Joint Official Liquidators and The Bahamas in the broader global recovery effort.