Bahamas Liquidators And FTX Debtors Will Collaborate

A cooperation agreement between the legal teams in charge of the failing cryptocurrency exchange FTX’s bankruptcy cases in the United States and the Bahamas has ended the disputes between the two parties that appeared soon after FTX’s demise.

In Delaware, where the company sought Chapter 11 bankruptcy protection, and the Bahamas, the location of FTX Digital Markets, parallel FTX bankruptcies occur. The crypto goliath filed for bankruptcy protection in November, and its 50 biggest creditors might be owed $3.1 billion.

The joint provisional liquidators and the FTX debtors announced in a statement that they had reached an understanding of how they would cooperate during legal processes in each country.

“Under the cooperation agreement, the parties commence work together to share information, secure and return the property to their estates, coordinate litigation against third parties, and explore strategic alternatives for maximizing stakeholder recoveries,” FTX said.

Both parties agreed on a procedure to verify inventories under its control and expressed “comfortable” with the Bahamian Securities Commission’s ability to protect digital assets.

FTX CEO John Ray III suggested that there are certain areas of contention even though the legal teams have made progress. “There are some issues where we do not yet have a meeting of the minds, but we resolved many of the outstanding matters and have a path forward to resolve the rest,” he said.

The U.S. Bankruptcy Court in Delaware and the Supreme Court of the Bahamas must approve the deal before it becomes final. The next FTX court hearing in Delaware is set for January 13.