Breaking: Global Settlement Reached in FTX Digital Markets Liquidation

cryptonews.com:

The ongoing saga following the dramatic collapse of Sam Bankman-Fried‘s bankrupt cryptocurrency exchange FTX took a major new turn with a Tuesday announcement detailing a global settlement between FTX Trading Ltd. and FTX Digital Markets Ltd.

The settlement seeks to resolve the complex legal and financial issues stemming from having parallel bankruptcy proceedings for FTX in the US and a court-ordered liquidation in the Bahamas.

FTX Trading Ltd., the parent company operating the FTX exchange which filed for Chapter 11 bankruptcy protection in the US, revealed that it has signed a global settlement agreement with the joint official liquidators overseeing the wind-down of FTX Digital Markets Ltd. The FTX subsidiary, incorporated in the Bahamas, entered liquidation proceedings after FTX Trading Ltd.’s bankruptcy filing.

The settlement is pending approval by both the US Bankruptcy Court of Delaware and the Supreme Court of the Bahamas. If approved, it would allow a novel resolution to synchronize the bankruptcy and liquidation processes across jurisdictions. The joint liquidators and FTX Trading Ltd. are planning to cooperate in pooling assets, align the timing of creditor payouts, and establish unified policies for valuing claims and administering proceedings.

“The Global Settlement Agreement reflects a novel and mutually beneficial solution to the complex cross-border legal issues raised by the circumstances of the collapse of the FTX group,” the announcement read.

Key components of the settlement agreement include:

The settlement outlines clear divisions of operational responsibilities between the two sides. FTX Digital Markets will take the lead in monetizing Bahamas-located assets and pursuing specific litigation, while FTX