• FTX debtors in the U.S. and its liquidators in the Bahamas have agreed on an asset recovery plan.
• The plan involves sharing information, returning property, filing litigation against other parties, and maximizing stakeholder recoveries.
• The two parties have settled on inventorying crypto assets that the Bahamas Securities Commission currently holds in a Fireblocks wallet.
FTX, a major cryptocurrency exchange, has announced that its debtors in the United States and its liquidators in the Bahamas have reached an agreement on an asset recovery plan. This plan is meant to maximize stakeholder recoveries and ensure that former FTX customers are made whole.
The plan involves multiple steps and actions. The two parties have agreed to share information, arrange the return of property, and file litigation against other parties if necessary. Additionally, they have settled on inventorying crypto assets that the Bahamas Securities Commission currently holds in a Fireblocks wallet. The Commission has been safeguarding these assets, and both parties are reportedly satisfied by their efforts.
John J. Ray III, FTX’s CEO and Chief Restructuring Officer, praised the efforts of the Joint Provisional Liquidators of FTX DM. He noted that while there are still some issues that require further discussion, many issues have been settled and a path forward has been established.
The Bahamas Securities Commission has been at the center of the dispute since December 29th, when it admitted to holding $3.5 billion of crypto. FTX also claimed that regulators seized $300 million without any right to do so. Now, with the two halves of FTX agreeing to cooperate on various efforts, it appears that a resolution may be in sight.