JOLs Obtain Sanction Of The Bahamas Supreme Court To Enter Into Global Settlement Agreement With Chapter 11 Debtors To Pool Assets Of FTX Digital's Estate

• Published date: 05 March 2024
• Law Firm: Lennox Paton
• Author: Ms Sophia Rolle-Kapousouzoglou

1. The Joint Official Liquidators of FTX Digital Markets Ltd (Brian Simms KC, Peter Greaves and Kevin Cambridge) ("the JOLS") have entered into a Global Settlement Agreement ("GSA") with the Chapter 11 Debtors of the FTX Companies ( approximately 130 FTX Companies which filed for Chapter 11 on 11^th November 2022).
2. FTX Digital Markets Ltd. ("FTX Digital") is a Bahamas Company regulated under the Digital Assets Registered Exchanges Act ("DARE Act") which did not file for Chapter 11 but rather, FTX DIgital was put into provisional liquidation one day before the Chapter 11 filings on 10^th November 2022.
3. FTX Digital was put into provisional liquidation on the basis of a regulators petition presented by the Securities Commission of The Bahamas ("SCB") on the basis that FTX Digital was in breach of their duty to act honestly and fairly, to act with due care and diligence, observe and maintain a high standard of professional conduct and maintain financial...