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The bankruptcy proceedings of the collapsed crypto exchange FTX look chaotic.
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Brian Simms, a Bahamas-based lawyer, stated in a court filing that FTX was not authorized in the U.S. to file for bankruptcy.
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He also said he "reject[s] any purported attempt to put FTX affiliates into bankruptcy."
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Simms' declaration was made after he and other liquidators applied for Chapter 15 bankruptcy protection
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In support of the Bahamas arm of insolvent crypto exchange FTX Digital Markets – in the Southern District of New York on Tuesday.
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Chapter 15 bankruptcy is often used for cross-border operations.
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Simms requested provisional relief from the court, including recognition of Bahamian bankruptcy and liquidation proceedings.
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Orders entrust FTX assets in the U.S.A to Bahamian liquidators.
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Authorizing "urgent discovery actions" and preventing any FTX assets from being "transfered, encumbered or otherwise disposed off."
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