Update Regarding FTX Bankruptcy Proceedings: Denial of JPL Motion for Relief from the Automatic Stay

June 16, 2023

On June 9, 2023, Judge Dorsey denied a March 29, 2023 motion by the Joint Provision Liquidators (the “JPLs”) of FTX Digital Markets, Ltd. – FTX’s Bahamian entity created in 2021 — seeking an order that the automatic stay under 11 U.S.C. 362 does not apply or, alternatively, lifting the stay to allow the JPLs to ask a Bahamian court for guidance on issues of Bahamian, English and Antiguan law concerning currency and digital assets held at FTX.   By denying that motion, Judge Dorsey ensured that ownership of the assets held by the Debtors in the U.S. proceedings will be determined in the U.S. Bankruptcy Court and should hasten and simplify the approval of a distribution plan.

This release is for informational purposes only and should not be construed as legal advice.