On June 8, New York time, FTX’s U.S. bankruptcy judge said he would not follow the advice of a Bahamian court on the key issue of which FTX entity should collect assets and repay customers of the bankrupt cryptocurrency exchange. The liquidators of FTX Digital Markets asked U.S. Bankruptcy Judge John Dorsey to allow them to seek a ruling from the Bahamian Supreme Court that their company controls the cryptocurrency exchange for international customers of FTX.com.
Dorsey questioned the value of the Bahamian court ruling, saying he would retain control of $7 billion in assets recovered by U.S. debtors no matter what the Bahamian court decides. FTX’s U.S. bankruptcy team sought to block the Bahamian lawsuit, calling it a power grab that would undermine the company’s ongoing efforts to repay its customers.
