Failed crypto exchange FTX has filed a lawsuit against the liquidators of its Bahamian affiliate, FTX Digital Markets, saying they don't have authority to claim ownership of FTX's assets.
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According to a report from Reuters, FTX Trading is asking the court to object FTX DM's request to get ownership interest in FTX's crypto, IP rights and so on. The lawsuit states FTX DM never offered any "significant services" for the exchange business. However, FTX's liquidators argue the Bahamian company held a more important role for FTX.com once the company moved from Hong Kong.
FTX's founder Sam Bankman-Fried was arrested in the Bahamas last year after the exchange went bankrupt over failed investment strategies using customers funds. The US Securities and Exchange Commission (SEC) charged the disgraced crypto billionaire with defrauding investors.
The watchdog believes that at least since May 2019, FTX raised more than $1.8 billion from equity investors, without telling them that the exchange was sending customers' funds to Alameda Research, Bankman-Fried's privately-held crypto hedge fund.
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