A mutual cooperation agreement was reached between the teams in charge of the collapsing cryptocurrency exchange FTX's bankruptcy proceedings in the United States and the Bahamas, which appears to have resolved the issues that developed between the two parties right after its demise.
Parallel FTX bankruptcies are occurring in Delaware, where the company requested Chapter 11 bankruptcy protection, and the Bahamas, where FTX Digital Markets is located. The crypto goliath filed for bankruptcy protection in November; it may owe $3.1 billion to its 50 largest creditors.
The FTX debtors and the joint provisional liquidators declared in a statement that they had achieved an agreement on how they would interact with one another throughout legal proceedings in each nation.
"Under the cooperation agreement, the parties commence work together to share information, secure and return property to their estates, coordinate litigation against third parties and explore strategic alternatives for maximizing stakeholder recoveries."
FTX said in a statement
Both parties were "satisfied" with the Bahamian Securities Commission's capabilities to safeguard digital assets and agreed on a mechanism to verify inventory under its control.
FTX CEO John Ray III noted that even while the legal teams have made progress, there are still some points of conflict.
"There are some issues where we do not yet have a meeting of the minds, but we resolved many of the outstanding matters and have a path forward to resolve the rest."
The Bahamas Supreme Court and the United States Bankruptcy Court in Delaware must both approve the agreement. On January 13, there will be a hearing in Delaware over FTX.