Bankrupt cryptocurrency exchange FTX announces global settlement, resolves US and Bahamas settlement issues

Bankrupt cryptocurrency exchange FTX Trading Ltd. has made an important announcement that it has reached a settlement. It aims to resolve legal issues arising from the liquidation proceedings of its subsidiary FTX Digital Markets Ltd. in the Bahamas.

FTX settles with debtor

FTX and the related debtors have reached a global agreement with joint official liquidators representing its subsidiary, FTX Digital Markets Ltd., which is undergoing liquidation in the Bahamas. The agreement, which has been approved by the U.S. Bankruptcy Court for the District of Delaware and the Bahamas Supreme Court, is currently awaiting expedited court approval.

Under the terms of this Global Settlement Agreement, FTX Obligors and FTX Digital Markets will work closely to pool assets and coordinate reserve settings. This ensures that FTX.com customers receive their fair share regardless of legal proceedings in the United States or the Bahamas.

One of the most customer-centric settlement approaches is a provision that allows FTX.com customers to choose where their claims will be adjusted and paid, either in an FTX debtor’s Chapter 11 case in the United States or in a liquidation proceeding in the United States. Bahamas. This election is not expected to have a significant economic impact on claimants.

The parties said the agreement would resolve cross-border legal issues arising from the collapse of FTX Group. In particular, valuation of claims for digital assets is consistent in both jurisdictions, calculated in U.S. dollars as of the petition date, without adjustment for post-petition price changes.

John J. Ray III, CEO of FTX Debtors, described the settlement as a key achievement as it focuses on resolving the issues while respecting all relevant jurisdictions and prioritizing the interests of FTX.com customers.