Managers of FTX are suing a company affiliate based in the Bahamas, seeking a bankruptcy court ruling to end a dispute with liquidators there over who should control and distribute assets of the failed cryptocurrency exchange, WSJ Pro Bankruptcy reported. The managers said in their complaint they are suing because of “serial threats” by the liquidators of affiliate FTX Digital Markets Ltd. to try to move FTX’s bankruptcy proceedings to the Bahamas to pursue the company’s cash, crypto and other assets there. FTX filed for chapter 11 bankruptcy protection in November at odds with the Bahamian liquidators of FTX Digital Markets over control of the company’s business and an unknown amount of digital currency. The liquidators and FTX had cooled tensions in January, agreeing to share information and secure and distribute assets belonging to company entities in the Bahamas and abroad. But in their lawsuit filed Sunday in U.S. Bankruptcy Court in Wilmington, Del., FTX’s U.S. managers said the liquidators “continue to cast confusion” over of the company’s property.
