Failed crypto exchange FTX has filed a lawsuit against FTX Digital Markets Ltd., Brian C. Simms, Kevin G. Cambridge and Peter Greaves, the joint provisional liquidators of FTX DM, and certain unidentified individuals or entities, alleging false ownership claims of the trading platform.
The lawsuit seeks a declaratory judgment that FTX DM has no ownership interest in any of the debtor's property and that transactions used to hide assets behind the Bahamian entity are fraudulent transfers.
The joint provisional liquidators (JPLs) have claimed that FTX DM, a non-debtor, is the constructive owner of FTX.com's property, including fiat and cryptocurrency, intellectual property and customer relationships.
The JPLs insist that the question of ownership be resolved in the Bahamas, where FTX DM is the subject of legal proceedings.
Yuri MolchanAccording to the lawsuit, FTX DM was a short-lived provider of limited "matchmaking" services for customer-to-customer transactions on the cryptocurrency exchange built, owned and operated by FTX Trading.
The lawsuit also alleges that FTX DM was created as a front to facilitate a conspiracy to defraud the debtor's customers, with three individuals already pleading guilty and founder Sam Bankman-Fried under indictment.
The JPLs are accused of continuing to cast confusion over the true ownership of the debtor's property and wasting the debtor's assets in the process.
FTX is seeking a merit determination from the court as promptly as the matter can be litigated and resolved.
Denys Serhiichuk
Tomiwabold Olajide
Vladislav Sopov
Dan Burgin