FTX US judge expresses doubts about parallel Bahamian bankruptcy

The judge overseeing FTX’s US bankruptcy said Thursday that he would not defer to a Bahamian court about key issues like which FTX entity should collect assets and repay customers of the bankrupt crypto exchange.

Liquidators for FTX Digital Markets, the exchange’s Bahamas-based subsidiary, have asked US Bankruptcy Judge John Dorsey to let them seek a ruling from the Bahamas Supreme Court that their company controlled FTX.com’s crypto exchange for international customers.

FTX’s US bankruptcy team seeks to block the Bahamas litigation, calling it a power grab that would derail the company’s ongoing efforts to repay customers.