FTX Follow-up | Bahamas and the United States Reach Cooperation: Real Estate Solutions, New York Court Provides Contact Channel for Victims

On January 7th, following the bankruptcy reorganization of FTX:

• Upon approval by the Supreme Court of the Bahamas, the Bahamian provisional liquidators and the U.S. creditors' representative are now allowed to share information. Both parties have issued a joint statement to collaborate in handling Bahamian assets, including real estate and custodial assets.
• The New York prosecutors believe that there are too many creditors of FTX, and have announced proactive contact channels to facilitate verification and notification of rights.

Joint Statement: Collaborative Oversight of Real Estate and Digital Asset Handling

Despite the recent dissatisfaction expressed by the Securities Commission of The Bahamas (SCB) towards John Ray, the trustee for the FTX bankruptcy restructuring, citing numerous misunderstandings on the part of the U.S., both parties have now agreed to collaborate. Joint liquidators Brian Simms, K.C., Peter Greaves, and Kevin Cambridge have been appointed to represent FTX.com and its related creditors to facilitate the inclusion of FTX Digital Markets, known as FTX DM and regulated in The Bahamas, into the Chapter 11 bankruptcy reorganization process in the U.S., allowing FTX creditors to participate in the Bahamian process.

Both parties have agreed that the handling of FTX's real estate in The Bahamas and the digital assets previously held in Fireblocks will be overseen by the joint liquidators, with supervision from both courts.

"We want to thank all of the joint provisional liquidators for FTX DM for the constructive meeting held in Miami this week and for all the work they have done for their estates. While there are still issues where consensus has not been reached, many issues have been resolved, and pathways to resolution have been identified for the remaining issues," said John Ray, the trustee for FTX's bankruptcy restructuring.

Representing the joint liquidators, Brian Simms stated that the meeting was to find the best solutions for customers and creditors of the FTX.com platform, utilizing different tools available in each jurisdiction to achieve this goal, emphasizing that this collaboration is aimed at a better outcome for all stakeholders.

Updates on the progress can be found at https://restructuring.ra.kroll.com/FTX/.

New York Court Provides Contact Channel for Victims

The New York prosecutor's office estimates that there may be over a million victims of FTX, and under U.S. federal law, prosecutors are required to reach out to crime victims to inform them of their rights, which can be challenging. Therefore, they have made information available publicly here and provided an email address for victims to contact directly.