Bahamian liquidators tasked with overseeing the affairs of Sancus, a BVI-based financial services firm, rejected the validity of a recent US bankruptcy filing by FTX, an international cryptocurrency derivatives exchange. The liquidators previously called for an immediate stay of the litigation and arbitration proceedings in the US, accusing FTX founders of operating what they described as “a sophisticated fraud scheme”. The most recent filings allege that FTX – a subsidiary of FTX Trading Ltd. – has misled the court by concealing its association with convicted financial fraudster Sam Bankman-Fried and his trading firm Alameda Research.
The liquidators tasked with overseeing the affairs of Sancus, a BVI-based financial services firm, rejected the validity of a recent US bankruptcy filing by FTX, an international cryptocurrency derivatives exchange.
FTX In Deep Trouble
The bankruptcy filing was made on November 5th and would transfer control of FTX’s assets to one of its creditors in hopes that this creditor could then sell them off to pay back some debts. The liquidators stated that they do not recognize this transfer of ownership as valid because it was done without their permission or knowledge.
The liquidators previously called for an immediate stay of the litigation and arbitration proceedings in the US, accusing FTX founders of operating what they described as “a sophisticated fraud scheme” that benefited Bankman-Fried and his trading firm Alameda Research.
The most recent filings allege that FTX – a subsidiary of FTX Trading Ltd. – has misled the court by concealing its association to convicted financial fraudster Sam Bankman-Fried and his trading firm Alameda Research.
The liquidators are seeking to prevent any further transfers or payments from these companies until the claim against Bankman-Fried is determined by an arbitrator appointed by the High Court in Nassau in accordance with local rules on international disputes settlement.
