FTX liquidators’ legal team urges cooperation with Bahamian authorities amid favoritism allegations

A lawyer representing provisional liquidators overseeing FTX’s belongings has pushed again in opposition to allegations officers within the Bahamas had been utilizing the collapse of the crypto change to learn its residents first.

In a Dec. 16 listening to for FTX Trading’s chapter proceedings, White & Case companion Jason Zakia mentioned allegations made by debtors regarding FTX belongings and Bahamian authorities had been “wholly with out benefit”. The legal team represented provisional liquidators whose appointments had been accepted by the Supreme Court of the Bahamas in November and had “no involvement” within the downfall of FTX previous to its chapter, in accordance with Zakia.

“In any worldwide case like this, there are a mess of jurisdictions which have official and vital pursuits and that definitely consists of the Bahamas,” mentioned Zakia. “The Bahamian legal system is an impartial legal system that ought to be revered. There have been a variety of allegations and aspersions thrown round directed on the Bahamas — the Bahamian authorities, the Bahamian legal system.”

He clarified:

“One of the allegations […] that Bahamians had been one way or the other facilitating funds off the system to Bahamian residents in place of different collectors. When you take a look at the proof, they’ve that precisely backwards. [Joint provision liquidators] had been appointed particularly as a part of an effort to cease such exercise.”

FTX filed for chapter underneath Chapter 11 within the United States District of Delaware on Nov. 11. The chapter courtroom has held just a few hearings as a part of the proceedings dealing with how the agency’s belongings could also be dealt with amid pursuits from FTX debtors and collectors. The subsequent listening to out there to the general public is anticipated on Jan. 11, which can probably deal with the crypto change’s naming rights deal over the FTX Arena.

Related: FTX Bahamas co-CEO Ryan Salame blew the whistle on FTX and Sam Bankman-Fried

In the Bahamas, former FTX CEO Sam Bankman-Fried was despatched to jail following a bail listening to on Dec. 13 in conjunction with fees from the U.S. Justice Department. The authorities company has warned people concerned that it was “not executed” with arrests.