A media and legal dispute between FTX’s new US owners and Bahamas regulators has worsened as the two prepare to go to full court later this week.
In one corner, liquidators argue that the company was actually run from the Bahamas; in the other, Ray claims that the Bahamas entity of the company is at best a sideshow.
Each side is attempting to link the other to the alleged shady dealings of the crypto exchange’s former CEO, Sam Bankman-Fried, who is currently awaiting trial in the United States for fraud after being extradited from the Caribbean and released on bail.
Who has access to FTX’s internal systems, such as internal Slack messages and QuickBooks accounting software, is at the heart of the dispute. Brian Simms, the Bahamas liquidator, says he needs the data to wind up his side of the business, as a local court ordered him to do in November. According to John Ray, the request has a “staggering overbreadth.”
While Bankman-Fried awaits his arraignment in New York, a Delaware bankruptcy court will have to resolve a jurisdictional dispute between the two parties, who have publicly accused each other of being “reckless in the extreme” and having a “cavalier attitude towards the truth.”
(Reporting by Shikha Singh; Editing by Laxmikant Khanvilkar)
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