The work of the Joint Provisional Liquidators (JPLs) in The Bahamas has been hampered by the JPLs' lack of access to FTX Digital's own books and records

The Joint Provisional Liquidators (JPLs) in The Bahamas are seeking to re-establish access to FTX Digital’s books and records

FTX Digital Markets Ltd. (in Provisional Liquidation)
Building 27, Veridian Corporate Center
Western Road
Nassau, N.P., The Bahamas
 
 

November 30, 2022

Contacts: Mike Davies, PwC Global Corporate Affairs and Communications Team
Telephone: +44 7603 974136
Email: mike.davies@pwe.com

 

Update by the Joint Provisional Liquidators of FTX Digital Markets Limited ("FTX Digital")

 

FTX Digital was placed into provisional liquidation by the Supreme Court of The Commonwealth of the ‘Bahamas (the "Supreme Court’) on 10 November 2022 (the “Provisional Liquidation Order’).  The ‘Supreme Court appointed Brian Simms KC, of Lennox Paton, Kevin Cambridge, of PwC Bahamas, and Peter Greaves, of PwC Hong Kong, as the Joint Provisional Liquidators (collectively the "JPLs’).

‘Since their appointment by the Supreme Court, the JPLs have been reviewing the financial position of FTX Digital, investigating the causes of the collapse of FTX globally and its impact on FTX Digital, ‘seeking to identify and secure assets, and investigating all paths available to the company with a view to realising the maximum possible value for FTX Digital stakeholders.  This work is ongoing, 

‘As previously disclosed, the work of the JPLs has been hampered by the JPLs' lack of access to FTX Digital's own books and records, particularly customer information, stored on cloud-based servers.  The JPLs are seeking to re-establish access to FTX Digita’s books and records.  This includes an application to seek recognition of the provisional liquidation of FTX Digital in the United States under Chapter 15 of the US Bankruptcy Code.  Additionally, the JPLs intend to enter discussions with the debtors in possession under the Chapter 11 proceedings in the U.S. in order to seek to agree a protocol whereby ‘amongst other matters, information may be shared.

‘The JPLs have been in communication with the Securities Commission of the Bahamas (the Commission”) and are cooperating fully with the Commission's investigations.  The JPLs also ‘acknowledge and appreciate the steps taken by the Commission to safeguard the digital assets managed by FTX Digital.

There remains significant uncertainty around the outcome of proceedings involving FTX Digital.  As of the date hereof, the JPLs confirm that they have not made any redundancies and that employees who remained in the employment of FTX Digital as at the date of Provisional Liquidation Order and had not resigned or indicated their intention to resign, will continue to be retained by FTX Digital until further notice.  The JPLs are focused on addressing FTX Digital employee issues and concerns, and would like to thank the employees for their ongoing understanding and cooperation.  Any employee who wishes to contact the JPLs’ team may do so by emailing bs_employees_ftx_fdm@pwc.com.  Please note that any discussions by the JPLs with employees of FTX Digital will relate to his/her role at FTX Digital, and not with respect to his/her employment, if applicable, by any other FTX entity.

The JPLs continue to work hard to carry out their duties including seeking to gain full access to FTX Digital's information.  The JPLs will communicate further updates as and when appropriate.