Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/a0b2aa9d-58ca-45b8-a5a3-5b8aff097cfc.jpg)
Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
FTX sent $7.7 billion in assets from the crypto company’s Bahamian estate to its U.S. counterparts in the lead up to its bankruptcy filing last year, a Delaware bankruptcy court was told during a Wednesday.
Court-appointed joint provisional liquidators in the Bahamas said that $5.6 billion was transferred from Bahamas unit FTX Digital’s custodial accounts to U.S. entity FTX trading, while another $2.1 billion was transferred to FTX’s U.S. trading arm Alameda Research.
“And then we have other tangible assets of about $3 million, mostly relating to office furniture, equipment and the fleet of cars that the employees had in the Bahamas,” Christopher Shore, a lawyer for the liquidator said during the hearing.
FTX’s new management reached a cooperation agreement in early January with court-appointed liquidators in the Bahamas to iron out disagreements and address the assets in dispute.
“The cooperation agreement is a starting point. But the issues as to whether assets belong in the Bahamian estate or in the U.S. estate are open issues. And so the statements that Mr. Shore has made in that regard are statements that the U.S. Senators reserved all their rights on, and frankly, disagree with with many,” a representative for FTX said.
At the same hearing, presiding Judge John Dorsey denied a motion to appoint an independent examiner to look into FTX’s financials – something that representatives for FTX previously said could cost the estate around $100 million.
Sign up for Money Reimagined, our weekly newsletter exploring the transformation of value in the digital age.
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.
DISCLOSURE
Please note that our
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
which invests in
and blockchain
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.
Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.
Read More
Today, the court was informed that FTX had transferred $7.7 billion from the Bahamian estate of investor Oleg Deripaska to US units ahead of a bankruptcy filing.
Oleg Deripaska, the Russian businessman and billionaire, had faced serious cooling in his business life in recent years. Now, FTX,Deripaska’s investment company, has revealed those finances were transferred from the Bahamian estate to US units prior to the company filing for bankruptcy in the High Court of England and Wales.
An Indian company En+ Group, which is managed by FTX, was formed by Deripaska and is majority-owned by him. It has faced tough times since April 2018, when the US imposed sanctions. Further transportation of funds emerged during an investor meeting held in London.
FTX has been under scrutiny since 2017 and was sued by the US’ US Securities and Exchange Commission (SEC) in November. This was the SEC’s first complaint against a Russian company. The company had allegedly misled investors during its 2017 initial public offering (IPO) and had omitted relevant details in its filings.
The recent ruling by the court said that FTX would not be allowed to transfer and invest funds outside of its US units without getting prior approval from the court.
The ruling by the court is significant as it will help protect and prevent any further misappropriation of funds. FTX is currently under investigation and the court’s ruling will ensure that the public are aware of all funds collected and how those were used. Ultimately, this ruling has the potential of putting an end to questionable business practices.
