FTX Debtors and FTX Digital Markets Reach Cooperation Agreement

FTX Debtors and FTX Digital Markets' Cooperation

FTX Debtors and FTX Digital Markets (FTX DM), a Bahamian subsidiary, have reached a significant cooperation agreement. This agreement pertains to the ongoing Chapter 11 bankruptcy proceedings in Delaware and the provisional liquidation of FTX DM in the Bahamas.

Key Aspects of the Agreement

The collaboration involves sharing crucial information and securing and returning property to their respective estates. Additionally, both parties will coordinate litigation efforts against third parties. This strategic alignment aims to explore alternatives for maximizing stakeholder recoveries.

Legal and Strategic Coordination

Parameters have been established to ensure effective cooperation in each other's legal proceedings. This coordination is crucial for both entities to navigate the complexities of international bankruptcy laws and maximize potential recoveries.

Maximizing Stakeholder Recoveries

A primary focus of this agreement is the exploration of strategic alternatives. The objective is to maximize recoveries for stakeholders, making this cooperation a critical step in the complex financial landscape surrounding the FTX bankruptcy case.

This cooperation agreement marks a pivotal moment in the FTX Debtors’ Chapter 11 process, aiming to streamline proceedings and enhance recovery efforts for stakeholders involved.