The ongoing claims process for creditors impacted by the collapse of FTX’s Bahamas-based entities may now fall under the scrutiny of regulatory bodies in the United Kingdom and the European Union.
Legal experts suggest that claimants could be subject to applicable legal frameworks governing cross-border insolvency cases. This potential extension of jurisdiction stems from complexities inherent in the international reach of the FTX bankruptcy and the location of many affected parties.
While the Independent Joint Provisional Liquidators (JPLs) oversee asset recovery for FTX Digital Markets Ltd. in The Bahamas, the movement of funds and claimant locations bring UK and EU regulatory oversight into consideration.
The precise impact on individual claimants navigating the process remains under assessment. The development highlights the legal complexities faced by creditors in large-scale, international cryptocurrency insolvencies spanning multiple jurisdictions.