All expenses related to the digital wallet that houses the assets of FTX Digital Markets (FDM) shall be borne by FTX, the recently defunct cryptocurrency exchange. The Securities Commission of The Bahamas is in charge of keeping the pocketbook under control, according to a Bahama’s Supreme Court decision from Monday.
The statement said,
“The Order secured today confirms the Commission is entitled to be indemnified under the law and FDM shall ultimately bear the costs the Commission incurs in safeguarding those assets for the benefit of FDM’s customers and creditors, in a manner similar to other normal costs of administering FDM’s assets for the benefit of its customers and creditors………… No payment(s), however, may be made to the Commission without prior approval of the Supreme Court.”
The Supreme Court ruled that FTX must cover the expenses incurred by the Securities Commission in retaining the assets “for the benefit of FDM’s customers and creditors.” But no payment to the commission may be made without the Supreme Court’s prior consent.
FTX Owes Over $3B To Biggest Creditors
According to a document submitted to a US bankruptcy court, the defunct cryptocurrency exchange FTX owes its 50 largest creditors close to US$3.1 billion. FTX, which declared bankruptcy after being unable to handle consumer withdrawals, alone owes its top 10 debtors over US$1.45 billion.
The cryptocurrency exchange filed for bankruptcy over ten days ago, abandoning about one million creditors, albeit the degree of the harm is uncertain due to allegedly bad record-keeping procedures.
FTX was the second-largest cryptocurrency exchange after Binance before it went under.
Its inability to fulfil a surge in withdrawals caused by worries about its solvency revealed that it did not actually have assets worth the billions of dollars it had stated.
In addition, FTX has requested assistance from other exchanges in getting back cryptocurrency that was taken during the latter phases of its collapse so that it can pay its creditors. Analysts estimate that around US$270 million worth of cryptocurrency was stolen.