A lawyer who oversees FTX’s assets and represents its temporary liquidators has disputed claims that authorities in the Bahamas used the crypto exchange’s collapse to benefit its residents first.
White & Case partner Jason Zakia said at a hearing on FTX Trading’s bankruptcy case on Dec. 16, allegations made by debtors regarding FTX assets and Bahamian authorities were completely unfounded. According to Zakia, the legal team represented temporary liquidators whose appointments were upheld by the Bahamas Supreme Court in November, who had nothing to do with the case prior to FTX’s bankruptcy.
“In any international situation like this, there are multiple jurisdictions that have legitimate and important interests, and that certainly includes the Bahamas. The Bahamian legal system is an independent legal system that must be respected. It has a lot to do with the Bahamas, the Bahamian government, and the Bahamian legal system,” Zakia said. Many allegations and slander against him came to the fore,” he said.
“One is an allegation that the Bahamas somehow facilitated payments through the system to Bahamas residents rather than other creditors. Common-law liquidators were also specifically appointed as part of an effort to stop such activity.”
FTX filed for Chapter 11 bankruptcy on Nov. The bankruptcy court held several hearings as part of the proceedings regarding how firm assets could be handled between the interests of FTX debtors and creditors. The next public hearing is scheduled for January 11, and this hearing is expected to address the crypto exchange’s naming rights deal on FTX Arena.
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