In the Southern District of New York, <a href="https://www.cryptoknowmics.com/news/ftx-australia-licence-suspended-leaving-30k-australians-stranded">FTX Digital Markets</a>, the Bahamas-based subsidiary of the long-defunct cryptocurrency exchange, has <a href="https://www.reuters.com/technology/ftxs-bahamas-unit-seeks-chapter-15-bankruptcy-protection-filing-2022-11-16/" target="_blank" rel="nofollow noopener">applied</a> for Chapter 15 bankruptcy protection.

The document, recorded late Tuesday night, comes after the designation of bankruptcy liquidators in the <a href="https://www.cryptoknowmics.com/news/bankrupt-ftx-faces-criminal-investigation-in-bahamas">Bahamas</a> earlier that day and the filing of a lawsuit of a similar nature for the exchange's American affiliate, <a href="https://www.cryptoknowmics.com/news/former-cftc-commissioner-jill-sommers-joins-ftx-us-derivatives-board">FTX.US</a>, last Friday.
<h2>Chapter 15 Bankruptcy Enable Business Scaling</h2>
The process aims to enable the orderly scaling back of international businesses so that money may be restored to creditors as possible, which may include a large number of site regulars. The papers effectively make the case that American courts should acknowledge the legal processes in the Bahamas, allowing additional legitimate arguments by creditors to be postponed. According to the U.S. bankruptcy legislation, opposing parties have three weeks to file their reasons before the court decides.

Lawyers claim there is a connection to the United States through a client account that included $15,000 at the Holland &amp; Knight legal firm in New York, despite the fact that the Bahamas branch, FTX.com, was purportedly isolated from the American market.
<h2>FTX Digital’s Property in Delaware</h2>
The declaration on behalf of the corporation stated that it is unclear if FTX Digital owns any property in Delaware, which is sure to confuse the organization's complicated structure.

Secondary market data indicates that creditors might anticipate receiving only 8 to 12 cents on the dollar for their obligations against the defunct corporation once the U.S. business is ended up.

Bahamas Branch of FTX Filed for Chapter 15 Bankruptcy Protection

FTX Digital Markets, the Bahamas-based subsidiary of the long-defunct cryptocurrency exchange, has applied for Chapter 15 bankruptcy protection.

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Bahamas Branch of FTX Filed for Chapter 15 Bankruptcy Protection

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