FTX Resolves Dispute with Bahamian Liquidators

FTX Resolves Dispute with Bahamian Liquidators
Photo by Noah LaStella / Unsplash


  • FTX Trading, a bankrupt crypto exchange, has reached a settlement with the liquidators of its Bahamas unit.
  • The dispute centered around whether the U.S. bankruptcy proceedings should have precedence over Bahamian liquidation.

Key Details of the Settlement:

  1. Asset Pooling and Harmonized Valuation: FTX and FTX Digital Markets will pool their assets and align their approach to valuing customer claims. This strategy aims to ensure equal treatment for customers in both the U.S. and Bahamian insolvency processes.
  2. Customer Repayment Options: Customers of FTX.com's international crypto exchange will have the choice to seek repayment from either the U.S. bankruptcy proceedings or the Bahamian liquidation.
  3. Statement from FTX’s CEO: John Ray, who replaced Sam Bankman-Fried, highlighted that resolving the conflicting filings between FTX Debtors and FTX Digital Markets was a complex challenge. The agreement marks a crucial step in repaying customers.

Statements from Bahamian Liquidators:

  • Brian Simms and Peter Greaves emphasized that the agreement would prevent prolonged litigation and expedite fund returns to customers.

Background of the Dispute:

  • Following its bankruptcy protection filing on November 11, FTX has been in conflict with Bahamian authorities. The company faced a significant deficit, impacting 9 million customers.
  • A lawsuit was filed by FTX against the Bahamian liquidators in March, disputing the ownership claims over the exchange's assets.

Terms of the Agreement:

  • Asset Recovery Lead: The U.S.-based bankruptcy team of FTX will spearhead asset recovery, including any potential sale of FTX.com or its intellectual property.
  • Bahamian Liquidators’ Responsibilities: The Bahamian liquidators will manage the sale of Bahamian real estate assets and pursue specific litigation claims.

Concerning FTX's Proprietary Crypto Token (FTT):

  • The agreement acknowledges FTT as equity in FTX, which would be nullified in the bankruptcy process. The valuation of FTT tokens had been a significant issue, with the U.S. team previously claiming that most assets seized by Bahamian liquidators were essentially worthless FTT tokens.

FTX’s Commitment:

  • FTX has pledged to use a minimum of 90% of its assets to reimburse customers, with payments to be made in U.S. dollars instead of cryptocurrency.