‘Impossible situation’ fear on FTX Bahamas wind-up

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FTX Bahamas’ liquidators yesterday warned they will be placed in “an impossible situation” if they are forced into a “never-ending” legal battle with their US counterparts as operating cash has dwindled to less than $1m.

Peter Greaves, the Hong Kong-based accountant who is one of the three joint provisional liquidators for the failed crypto exchange’s Bahamian subsidiary, told the Delaware Bankruptcy Court the trio have “already committed expenditure beyond the funds we have” due to an inability to access assets amid the ongoing courtroom battle with John Ray, head of the 134 FTX entities under US Chapter 11 bankruptcy protection.

Christopher Shore, an attorney with White & Case, the US attorney for Mr Greaves and his fellow

• Liquidators’ operating cash dwindles under $1m

• FTX US chief trying to ‘starve’ and ‘strangle’ them

• Delaware judge to rule on Chapter 11 stay today

provisional liquidators, accused Mr Ray and his team of using the worldwide automatic freeze imposed by the Chapter 11 proceedings to “starve” FTX Digital Markets into submission through lack of funds and “strangle” its winding-up before the Supreme Court.

Mr Greaves and his fellow PricewaterhouseCoopers (PwC) partner, Kevin Cambridge, together with Brian Simms KC, the senior Lennox Paton partner, have previously alleged that interference by Mr Ray and his team dissuaded Tether from releasing $45m worth of stablecoins - digital assets backed one:one by fiat currency - to the FTX Digital Markets liquidation despite the two sides agreeing earlier this year that these assets belonged to the Bahamian proceedings.

The joint provisional liquidators have also been