FTX Digital Reaches Global Settlement as CEO Sam Bankman-Fried Awaits Sentencing

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As former FTX CEO Sam Bankman-Fried awaits his sentence this year, his crypto exchange has reached a global settlement with its debtors and liquidators. FTX Digital Markets Limited has made a significant agreement with FTX Trading Ltd. and its related debtors, a key move in resolving financial issues during Chapter 11 proceedings. This agreement marks an important step in FTX Digital’s ongoing restructuring efforts.

Following this agreement, the first meeting of FTX Digital’s creditors is scheduled for March 15, 2024, at The Baha Mar Convention Center in Nassau, Bahamas. The meeting aims to set up a liquidation committee and inform creditors about the claims process, ensuring an organized approach to closing FTX Digital.

FTX Digital, a company primarily operating in The Bahamas, is registered to facilitate the exchange of digital assets and traditional fiat currencies. However, it faced regulatory challenges, leading to a winding-up petition presented by the Securities Commission of the Bahamas in November 2022, leading to the suspension of its digital asset business license.

In this respect, the Commercial Division of The Supreme Court of the Bahamas appointed provisional liquidators, including Mr. Brian Simms KC of Lennox Paton, Kevin Cambridge of PwC Bahamas, and Peter Greaves of PwC Hong Kong, to oversee the liquidation proceedings. Subsequently, the Court appointed the Joint Provisional Liquidators as Joint Official Liquidators (JOLs) on November 10, 2023, directing them to wind up the company by applicable laws.

Plus, a Chapter 15 petition was also filed in the United States Bankruptcy Court for the District of Delaware, seeking recognition of the provisional liquidation as a foreign main proceeding, which was granted in February 2023. However, FTX Digital is not subject to the Chapter 11 Bankruptcy Proceedings initiated by certain other FTX entities. 

In the meanwhile, this website acts as a hub for FTX Digital stakeholders, such as customers and employees, offering updates and relevant details regarding the Bahamian Liquidation Proceedings. Notably, it does not address matters about the Chapter 11 Bankruptcy Proceedings, concentrating solely on FTX Digital’s affairs.

Overall, the situation involves legal complexities and ongoing proceedings in multiple jurisdictions, with efforts being made to address creditor claims and facilitate the orderly liquidation of FTX Digital Markets Limited.