The legal team of Alameda Research, FTX US, and FTX Trading sued FTX Digital Markets (DM) and accuse it of fraud.
Alameda Research, FTX US, and FTX Trading have launched a lawsuit against FTX Digital Markets (FTX DM), a firm based in the Bahamas. Moreover, the former believe the corporation is a “fraudulent enterprise” that was utilized as a front to conceal the company’s ownership.
FTX DM was purportedly an “economic nullity” inside the FTX Group that served as a front to promote a plan to mislead the Debtors’ consumers, according to the complaint.
In a filing on March 19 with the United States Bankruptcy Court for the District of Delaware, FTX debtors claim that the joint provisional liquidators’ (JPL) claims that FTX DM was the owner of FTX.com’s fiat and crypto assets, as well as other intellectual property, are “baseless” and may damage FTX.com customers and creditors of the FTX Debtors as the company moves forward with bankruptcy proceedings.
Did SBF Corrupt Bahamian Officials?
In their court petition, the debtors seek the court to determine that FTX DM had a “ownership interest” in the property at the center of the bankruptcy dispute. According to the petition, SBF, the former CEO of FTX, had links to Bahamian officials in order to reduce his “criminal liabilities” if people would find out the truth.
John Ray's team is suing the Bahamas JPL (FTX Digital Markets)
Essentially a dispute over who owns the main exchange.
Disappointing they couldn't have worked this out themselves and are now using creditor money on both sides for pointless lawyer battles. pic.twitter.com/PYKoeTFmEz
— FTX 2.0 Coalition (@AFTXcreditor) March 20, 2023
On November 11, FTX filed for bankruptcy in the United States, one day after the Bahamas Securities Commission seized FTX DM’s assets and suspended the company’s registration. Eventually, the nation’s highest court approved the appointment of PwC’s Kevin Cambridge and Peter Greaves as temporary liquidators in the FTX DM case.
SEC alleges FTX executives engaged in 'Massive, years-long fraud'
— Whale (@WhaleChart) March 20, 2023
All in all, SBF pleaded not guilty to all criminal charges in the United States. Authorities then released the former FTX CEO after posting a $250 million cash bond. Now, authorities believe that SBF is using encrypted messaging apps and a virtual private network for communication. That way, SBF could communicate and “influence” witnesses to his liking.