FTX US Bankruptcy Filings Weren’t Authorized, Liquidators Say (1)

Liquidators appointed by a Bahamian court to take over FTX Digital Markets’ affairs said they have “significant” concern that FTX management, led by Sam Bankman-Fried, lacked authority to put the crypto businesses into bankruptcy in the US.

More than 100 FTX-related entities filed for Chapter 11 in the US Bankruptcy Court for the District of Delaware after insolvency proceedings for Bahamas-based FTX Digital began on the island on Nov. 10.

The Delaware bankruptcy petitions were filed without the liquidators’ express permission, Warren E. Gluck, an attorney for the liquidators told the US Bankruptcy Court for the Southern District of New ...