Business

Liquidators seeking access to FTX servers, records

Retain all FTX employees who have not resigned or stated their intention to resign

Joint provisional liquidators (JPLs) revealed in a statement released yesterday that uncertainties remain over the outcome of the bankruptcy proceedings involving FTX Digital Markets (FDM), as they continue trying to gain access to cloud-based servers, books and records; and contend with FTX US’s new chief executive officer directing the company’s Chapter 11 bankruptcy.

The liquidators added in the statement that they have retained all FDM employees who have not resigned or stated their intention to resign.

The liquidators said it is their intention to “realize the maximum possible value for FTX Digital stakeholders”.

They said they have been investigating the causes of the global collapse of cryptocurrency exchange FTX and its impact on FDM, and trying to secure FDM’s assets since being appointed.

“This work is ongoing. As previously disclosed, the work of the JPLs has been hampered by the JPLs’ lack of access to FTX Digital’s own books and records, particularly customer information, stored on cloud-based servers,” the statement said.

“The JPLs are seeking to re-establish access to FTX Digital’s books and records. This includes an application to seek recognition of the provisional liquidation of FTX Digital in the United States under Chapter 15 of the US Bankruptcy Code. Additionally, the JPLs intend to enter discussions with the debtors in possession under the Chapter 11 proceedings in the US, in order to seek to agree to a protocol whereby amongst other matters, information may be shared.”

The liquidators added that they are in communication with the Securities Commission of The Bahamas (SCB) and are cooperating in the SCB’s own investigations.

The SCB revealed in a statement last week that it transferred FDM assets to digital wallets under its control for safe keeping.

The JPLs in their statement praised the move by the SCB, which is under a microscope because FTX collapsed under its regulatory watch.

“There remains significant uncertainty around the outcome of proceedings involving FTX Digital,” the liquidators said in their statement.

As for the employees of FDM, they said: “… the JPLs confirm that they have not made any redundancies and that employees who remained in the employment of FTX Digital as at the date of the provisional liquidation order and had not resigned or indicated their intention to resign, will continue to be retained by FTX Digital until further notice.

“The JPLs are focused on addressing FTX Digital employee issues and concerns, and would like to thank the employees for their ongoing understanding and cooperation.

“The JPLs continue to work hard to carry out their duties, including seeking to gain full access to FTX Digital’s information. The JPLs will communicate further updates as and when appropriate.”

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Chester Robards

Chester Robards rejoined The Nassau Guardian in November 2017 as a senior business reporter. He has covered myriad topics and events for The Nassau Guardian. Education: Florida International University, BS in Journalism

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