Joint Provisional Liquidators (JPL) who are in charge of winding up FTX Digital Markets (FTXDM) & FTX Chapter 11 debtors joined for an agreement of mutual cooperation for resolving the issues related to FTX bankruptcy and disposing of assets to stakeholders.
The Current Status Of FTX & JPL
FTX filed for Chapter 11 bankruptcy in the month of November 2022 following financial distress. Joint Provisional liquidators are in charge of winding up FTXDM. In the month of Dec 2022, there were many arguments and statements made by current FTX CEO Mr. John Ray, stating that the Securities Commission of Bahamas (SCB) had asked FTX to mint $300 million worth of FTT tokens – a claim which SCB has denied now.
SCB has raised a concern that stated FTX was hindering the investigation by court-appointed JPL by denying access to FTX’s AWS system. However, things are getting straightening up now as FTX & JPL are now in agreement for mutual cooperation to resolve the issues related to FTX’s bankruptcy & disposal of assets to its stakeholders.
Once the agreement is finalized, JPL will be given access to FTX’s AWS. This will in turn help JPL in allocating the assets to its rightful creditors and investors. It’s important to understand that the creditors and investors were the ones who were deeply impacted by the FTX bankruptcy; thus, solving their debts is of more importance for JPL.
Will the creditors & stakeholders be benefitted from this cooperation?
Yes, the creditors & stakeholders will be given the compensation once the proceedings are over between JPL & FTX chapter 11 debtors.
Now, the relevant question is ‘when is this going to happen?’
How long do the stakeholders have to wait for this to happen?
The court is adjourned till 13 Jan 2023. This time will be utilized by JPL & FTX debtors to negotiate and reach a consensus. For now, the stakeholders can wait and hope for the best.