Bankrupt cryptocurrency exchange FTX is suing the liquidators overseeing the wind-down of its Bahamian affiliate FTX Digital Markets (DM), alleging they have wrongly claimed ownership of the exchange’s assets.
FTX’s new management said in the lawsuit filed on Sunday that the liquidators were laying claim to FTX.com’s cryptocurrency, intellectual property, and customer relationships, per a Reuters report.
FTX said FTX DM was a “fraudulent enterprise” that was initially set up to be a “local service company,” which did not own the FTX.com exchange or any of the cryptocurrency seized.
FTX has clashed with the Bahamian officials tasked with winding down its Bahamian affiliate since the crypto exchange filed for Chapter 11 bankruptcy protection in November. The Bahamian entity still controls at least hundreds of millions of dollars worth of assets, according to a report by The Block.
“If the FTX debtors succeed in this adversary proceeding, there will be no property of FTX DM for local proceedings in The Bahamas to resolve,” the filing said, per The Block’s report.
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