The court-appointed liquidators are eyeing to halt FTX's asset sales.
One week after the implosion, legal woes for FTX have only intensified. According to the latest court filings from the company’s Bahamian liquidators, there are signs of “serious fraud and mismanagement” on the bankrupt crypto exchange’s part.
The document filed in the US Bankruptcy Court of the Southern District of New York revealed that the Joint Provisional Liquidators’ findings to date indicate that FTX may have committed serious fraud and mismanagement. The filing seeks to obstruct the sale of any assets by the company provisionally until a verdict is reached by the courts under Chapter 15 of the US bankruptcy code, which deals with insolvency cases involving more than one country.Troubles for FTX do not stop there.
Simms also argued that he rejects the validity of any “purported attempt to place FTX Affiliates in bankruptcy” as he did not “authorize or approve, in writing or otherwise.” He further stressed that the FTX brand and all its core management personnel ultimately operated from the Bahamas. The lawyer, however, does not seek the court to dismiss the bankruptcy proceedings in the US but instead has requested the courts in the country recognize the Bahamas’ legal proceedings.in Miami against former CEO Sam Bankman-Fried. According to reports, the lawsuit alleges that the crypto-yield-bearing accounts in question were unregistered securities illegally sold in the United States.
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