FTX Bankruptcy Judge Says U.S. Courts Should Have Full Control Over $7.3B in Disputed Assets

A national justice has changeable down a petition to relinquish power implicit embattled crypto speech FTX's $7.3 cardinal successful disputed assets during a Thursday bankruptcy hearing, dashing Bahamian liquidators' hopes that the land nation's judicial strategy could involvement a assertion to immoderate of the assets.

“Under nary circumstances would I ever defer a halfway jurisdictional contented to a overseas court," U.S. Bankruptcy Judge John Dorsey said. “And, the halfway jurisdictional contented present is whose assets are [these].”

During the proceeding astatine the U.S. Bankruptcy Court for the District of Delaware, Judge Dorsey considered a cardinal constituent of contention betwixt the case’s assorted players: the question of who owns the insolvent exchange's billions of dollars worthy of crypto and currency assets.

While liquidators based successful the Bahamas argued that a Bahamian justice should preside implicit portion of the bankruptcy case, FTX’s restructuring advisors, who took implicit the speech aft the company’s laminitis Sam Bankman-Fried was arrested connected fraud charges past December, argued against the request.

The justice yet sided with FTX’s advisors, adding: “The [courts successful the Bahamas] whitethorn person concurrent jurisdiction,” Dorsey said. “But arsenic a applicable matter, they don't person entree to the assets.”

While Dorsey made his constituent of presumption connected the contented clear, helium has not yet made an authoritative ruling connected the matter. He plans to bash truthful connected June 9, erstwhile the lawsuit is backmost successful session.