Liquidators says “significant uncertainty” remains around outcome of FTX Digital Markets proceedings

Liquidators says “significant uncertainty” remains around outcome of FTX Digital Markets proceedings
FTX logo is seen in this illustration taken, November 8, 2022. REUTERS/Dado Ruvic/Illustration

Liquidators say their work has been hampered by lack of access to company books and records

NASSAU, BAHAMAS — The Court appointed joint provisional liquidators for Bahamas-based FTX Digital markets said yesterday that there remains “significant uncertainty” around the outcome of proceedings involving the company, noting that their work has been hampered by a lack of access to its books, records and customer information stored on could-based servers.

The liquidators also noted in a statement yesterday that they have not made any redundancies and that employees who remained in the employment of FTX Digital as of 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.

FTX Digital Markets was placed into provisional liquidation by the Supreme Court of The Bahamas on November 10. The Supreme Court appointed Brian Simms KC, of Lennox Paton, Kevin Cambridge, of PwC Bahamas, and Peter Greaves, of PwC Hong Kong, as the Joint Provisional Liquidators. The liquidators said that since their appointment by the Supreme Court, they have been reviewing the financial position of FTX Digital.

The liquidators have also been investigating the causes of the collapse of FTX globally and its impact on FTX Digital, seeking to identify and secure assets, and investigating all paths available to the company with a view to realizing the maximum possible value for FTX Digital stakeholders.

“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 read.

“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 a protocol whereby amongst other matters, information may be shared.

“The JPLs have been in communication with the Securities Commission of the Bahamas and are cooperating fully with the Commission’s investigations. The JPLs also acknowledge and appreciate the steps taken by the Commission to safeguard the digital assets managed by FTX Digital,” it read. 

The liquidators underscored there was significant uncertainty around the outcome of proceedings involving FTX Digital.

“As of the date hereof, 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 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 statement read.

“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.”

Employees who wish to contact the liquidators are asked to email bs_employees_ftx_fdm@pwc.com.

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