The FTX branch on Bagams requested bankruptcy protection in the United States

FTX Digital Markets (FDM), based on Bagama, a subsidiary of FTX, filed a statement to the Court of the Southern District of New York in accordance with Chapter 15 of the United States Code of Bankruptcy. This is written by Bloomberg.

According to the law, such a step facilitates the consideration of insolvency cases related to assets and legal entities in more than one jurisdiction.

Chapter 15 may protect FDM from confiscation of assets in the territory of the states during the liquidation in the Bahamsk Islands.

The recognition of a foreign trial by the American court will suspend the filing of claims against the company, Coindesk points out. Other parties have three weeks for objections.

On November 11, the maternal company FTX, ALAMEDA ResEARCH and about 130 more affiliated firms submitted a bankruptcy statement.

On the same day, the Bahamas securities commission blocked the assets of FTX Digital Markets and other legal entities related to the company, as well November 2022 – as suspended the license.

Recall that the operator of Bitcoin-Birzhi has more than a million creditors, according to the documents for the court. Bloomberg considered unlikely the return of funds by customers.

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