Affiliated debtors of FTX, the cryptocurrency exchange that declared bankruptcy in the United States last November, announced that they had achieved a global settlement with FTX Digital Markets, its Bahamian subsidiary, which was going through a different liquidation procedure.
Together, FTX and its related debtors and the Joint Official Liquidators acting on behalf of FTX Digital Markets Ltd., a subsidiary that is going through liquidation in The Bahamas, came to a global settlement.
Subject to clearance by the Supreme Court of The Bahamas and the U.S. Bankruptcy Court for the District of Delaware, the accord seeks immediate court approvals.
The debtors said in a statement that the arrangement is “a novel and mutually-beneficial solution to the complex cross-border legal issues raised by the circumstances of the FTX group’s collapse.”
The Supreme Court of the Bahamas Court and the U.S. Bankruptcy Court for the District of Delaware must both approve it.
To distribute funds to FTX.com customers, who will have to select which company to file a claim against, FTX debtors and FTX Digital Markets would “pool assets and coordinate the establishment of reserves and the timing and amount of distributions.”
The identical know-your-customer protocols will be implemented by the Bahamian subsidiary as well to “ensure compliance with applicable law in the United States, The Bahamas, and all other applicable jurisdictions.”
“The Global Settlement Agreement represents yet another significant achievement for the FTX Debtors,” remarked FTX CEO and chief restructuring officer John J. Ray III.
“The unique challenges raised by the conflicting filings of the FTX Debtors and FTX Digital Markets have been some of the toughest the team has faced.”
The statement states that FTT interests against FTX creditors and FTX Digital Markets will be recognized as equity and will not be compensated.
Also Read: FTX Loses $53K/hr in Bankruptcy Fees, Fillings Reveal
