The attorneys from the Bahamas filed a motion to collect the detailed financial activities of all International users of the FTX exchange.
FTX exchange was a popular crypto company before 12 November 2022. The mismanagement of user funds by the backend team resulted in a liquidity crunch situation for the exchange and finally, on 12 November FTX filed for bankruptcy under chapter 11 in a US district court with its more than 100 affiliated companies.
Recently the Bahamian attorneys filed an emergency motion to get legal approval to access the database of the FTX exchange, to collect all the details of the FTX customers from all the countries.
The motion filed by the Bahamian attorneys was a part of the ongoing investigation against the FTX exchange, to find out the actual story of what happened & what the main reason behind the liquidity crunch situation was.
Attorneys confirmed through the motion that previously they failed to access the database of the FTX exchange and at that time investigation agencies noted that FTX officials were hiding the details of the fraud & illegal activities that they facilitated with millions of users.
The database of FTX stores on the Amazon Web Services (AWS) and Google Cloud Portal databases, which includes almost all possible information about the user’s crypto-related financial activities like name, DOB, nationality, total funds deposit & trade, etc.
Lawyers said that they will only access the data of users & their financial activities and it will not impact any of the US bankruptcy proceedings in any way.
CBDC reported on behalf of sourced filing:
“While the Joint Provisional Liquidators are happy to engage in dialogue with the U.S. Debtors, their refusal to promptly restore access has frustrated the ability of the Joint Provisional Liquidators to carry out their duties under Bahamian law and placed FTX Digital’s assets at risk of dissipation.”
These types of legal hurdles are hinting that bankruptcy proceedings will take huge time and also investigations will consume significant time. All over it will take years to release the remaining funds to the creditors.