Crypto exchange FTX has filed a lawsuit against the liquidators of its Bahamian affiliate, FTX Bahamas Ltd, claiming that they have wrongfully taken control of millions of dollars worth of digital assets, including bitcoin (BTC) and Ethereum (ETH).
The lawsuit was filed in the US court for the Southern District of New York. FTX is seeking the return of the digital assets and damages for the alleged mismanagement of FTX Bahamas’ assets. FTX also alleges that the liquidators have failed to properly account for the assets, which is required under Bahamian law.
FTX’s Bahamian affiliate filed for liquidation in July 2022, citing financial difficulties. However, FTX claims it was not adequately informed of the liquidation proceedings and that the liquidators have wrongly claimed ownership of FTX.
The lawsuit comes as the cryptocurrency industry faces increased scrutiny from regulators and financial institutions. FTX has been among the most active players in the space, securing a $450 million funding round at a valuation of $32 billion several months before the crash in November 2022.
Sam Bankman-Fried, a former FTX CEO, was charged with violating the Foreign Corrupt Practices Act (FCPA), conspiracy to commit money laundering, and other issues. was released on a $20 million bail, believed to be the highest set in a U.S. criminal case. He has denied the allegations and has pledged to fight the charges in court.