The federal judge overseeing bankrupt crypto firm FTX has promised to retain control of over $7.3 billion in disputed assets.
Sam Bankman-Fried, former CEO of bankrupt cryptocurrency exchange FTX, is currently held in the Bahamas. The judge in the Bahamas gave his word on the controversial assets of FTX.
Statement by US Bankruptcy Court Judge John Dorsey on FTX
U.S. Bankruptcy Court Judge John Dorsey is working with restructuring advisors who took over from FTX co-founder Sam Bankman-Fried, who is facing federal fraud charges. Dorsey stated that a central issue in the case of bankruptcy is who claims billions of dollars worth of cash and cryptocurrencies.
Head of Bankruptcy Court, Dorsey, said in his statements:
“Under no circumstances would I adjourn a fundamental issue in a bankruptcy case to a foreign court. Only me should be given access to assets.”
A liquidator in the Bahamas has asked Dorsey’s permission to bring some legal issues before a Bahamian judge who has filed for bankruptcy for a small unit of my FTX. FTX consultants claimed that this request was a backdoor attempt to seize assets in the US and move the restructuring to federal court in Delaware.
Dorsey said he will make his final decision on the liquidator’s request when the company files a lawsuit on June 9.
The liquidators representing FTX’s unit in the Bahamas argued that it was the property of FTX. The company has voiced these claims in court documents.
The case is heard by FTX Trading Ltd., US District of Delaware Bankruptcy Court.
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