FTX’s Bahamas liquidators seek to exclude more than $200 million worth of luxury properties from liquidation

Liquidators in the Bahamas are seeking to exclude more than $200 million worth of luxury assets in the country from FTX assets, as the bankrupt crypto exchange seeks to wind up and pay off debts for creditors in the US, court documents filed on Monday revealed.

Meanwhile, lawyers for FTX’s new boss, John Ray, are fighting what they say are “reckless” attempts by Bahamas-based administrators to secure rights access to the exchange’s IT system no longer exists, legal procedures quickly became messy. as the private administrator of the cryptocurrency exchange.

The failed attempts by former FTX exec Sam Bankman-Fried to retrieve his passwords for the company’s systems, were apparently at the urging of the joint temporary liquidators (JPLs) of the company. Bahamas, “highlights the recklessness with which JPL and the Bahamian authorities are approaching the security of the assets and debtor’s systems,” a filing on behalf of FTX’s new management in the United States said.

“The last time these individuals had access to the Debtor’s systems, they used that access to transfer assets belonging to the Debtor,” the filing adds.

Briefly reopening the FTX exchange from November 10 to November 11, the day Bankman-Fried resigned and the company filed for bankruptcy, resulting in $100 million in crypto being withdrawn by 1,500 customers. goods, or allegedly, Bahamian, said the filing.

10, Bankman-Fried promised Bahamian Attorney General Ryan Pinder that he would separate funds for local customers and allow them to withdraw, according to an email sent to the court.

In a letter dated December 7, attorneys for the Bahamas liquidators warned of “potentially serious adverse effects” and the risk of asset destruction if they were not given immediate access to assets. FTX systems, such as Amazon Cloud and Google Drive.

luxury villas

Meanwhile, in a separate court filing, Bahamian liquidators say the holding company of a series of 35 luxury villas in the Bahamas, the most expensive being worth $30 million, have been transferred in an undisclosed manner. illegally into the hands of the United States, as lawyers argued over which country had jurisdiction.

The portfolio is believed to be under the control of both FTX chief executive Sam Bankman-Fried and co-CEO Ryan Salame – but Salame may never have approved the company to hold the property. entered into Chapter 11 bankruptcy proceedings, Brian Simms, a designated liquidator in the Bahamas, told the Delaware court.

Simms said: “An action by one director is void under Bahamian law where the consent of two directors is required. “Bahamian law does not permit recognition of offshore bankruptcy proceedings of a Bahamian corporation” such as a company that owns assets.

After taking over as chief executive officer on November 11, Ray told the court that FTX was one of the biggest management failure he has seen in his 40-year restructuring career. Ray cited failure to document the structure of more than 100 entities in Bankman-Fried’s empire, his payroll employees, or the status of Bahamas assets awarded to employees.

Bankman-Fried had to testify in the US House of Representatives on Tuesday, but this was questioned after it was reported that Pinder had ordered Bankman-Fried arrested awaiting extradition to the US

Read more: Top US lawmaker says FTX hearing will continue without Sam Bankman-Fried


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