According to the court, FTX transferred $7.7 billion from the Bahamian estate to US units prior to filing for bankruptcy

According to the court, FTX transferred .7 billion from the Bahamian estate to US units prior to filing for bankruptcy

FTX sent $7.7 billion in assets from its Bahamian estate to its US counterparts in the run-up to its bankruptcy filing last year, a Delaware bankruptcy court heard on Wednesday.

According to court-appointed joint provisional liquidators in the Bahamas, $5.6 billion was transferred from the custodial accounts of Bahamas unit FTX Digital to U.S. entity FTX Trading, and another $2.1 billion was transferred to FTX’s U.S. trading arm, Alameda Research.

Additional tangible assets totaling about $3 million include a fleet of vehicles owned by the employees in the Bahamas as well as office furniture, equipment, and other items, according to a liquidator’s attorney, Christopher Shore, during the hearing.

In early January, FTX’s new management reached a cooperation agreement with court-appointed liquidators in the Bahamas to iron out differences and address the assets in dispute.

“The collaboration agreement serves as a starting point. However, the question of whether assets belong in the Bahamas or in the United States remains unresolved. As a result, the statements made by Mr. Shore in this regard are statements on which the United States Senators reserve all rights and, frankly, disagree with many of FTX’s representatives.

At the same hearing, presiding Judge John Dorsey denied a motion to appoint an independent examiner to investigate FTX’s finances, which FTX representatives previously stated could cost the estate around $100 million.

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