4 ms·

Why are they filing in the US? I thought they were Bahamas or Hong Kong besides ftx.us

by guelo 4y ago

phire 4y ago
I can guess: The US has Chapter 11 bankruptcy, while Antigua and Barbuda might only have something more closer to the US's Chapter 7.
- rippercushions 4y ago
  You can't really pick and choose where to have your bankruptcy. This filing is for FTX's US entities, those in Antigua will be wound up with Antigua's rules.
  - phire 4y ago
    Yes, that's what's weird. FTX Trading Ltd is "is incorporated in Antigua and Barbuda, and headquartered in The Bahamas", yet the linked statement clearly says FTX Trading Ltd (plus the FTX US entity, and Alameda, and others) are filing for Chapter 11 under US law in Delaware. Is there a parent company of FTX Trading Ltd that's based in the US? Edit: Apparently "Paper Bird Inc" is registered in Delaware, is 100% owned by SBF, and has ~89% ownership of FTX Trading Ltd.
    - donedeals 4y ago
      It’s probably because the parentco is filing. Need to see the BK filing to understand.
    - kgwgk 4y ago
      According to the filing Paper Bird Inc. owns approximately 75% of FTX Trading Ltd. - the rest is owned by third party investors. https://qz.com/full-text-ftx-bankruptcy-filing-1849772656 https://qz.com/full-text-ftx-bankruptcy-filing-1849772656
hestefisk 4y ago
Group holdings yes, but the US exchange and some of their other acquisitions are in US. It seems to be quite an elaborate cluster of firms that have filed for bankruptcy, which makes me think maybe someone was doing funny stuff with money.
- lost_tourist 4y ago
  Or hoping they could limit damage to one corp, but in this case the big daddy corp is sinking screwing all its assets
jasonwatkinspdx 4y ago
The US company may be the only part of SBF's portfolio that's worth anything at this point. I assume it's inevitable it gets pulled in.
ucha 4y ago
None of the answers you received so far are correct. The holding company of the foreign entity is in the US and can thus file for ch11. See who owns FTX Trading Ltd (Antigua) for example: https://d1e00ek4ebabms.cloudfront.net/production/8566b562-d5e8-412d-80eb-77ff899f0d29.jpg https://d1e00ek4ebabms.cloudfront.net/production/8566b562-d5...

Why are they filing in the US? I thought they were Bahamas or Hong Kong besides ftx.us

by guelo 4y ago

Why are they filing in the US? I thought they were Bahamas or Hong Kong besides ftx.us

I can guess: The US has Chapter 11 bankruptcy, while Antigua and Barbuda might only have something more closer to the US's Chapter 7.

rippercushions 4y ago
You can't really pick and choose where to have your bankruptcy. This filing is for FTX's US entities, those in Antigua will be wound up with Antigua's rules.
- phire 4y ago
  Yes, that's what's weird. FTX Trading Ltd is "is incorporated in Antigua and Barbuda, and headquartered in The Bahamas", yet the linked statement clearly says FTX Trading Ltd (plus the FTX US entity, and Alameda, and others) are filing for Chapter 11 under US law in Delaware. Is there a parent company of FTX Trading Ltd that's based in the US? Edit: Apparently "Paper Bird Inc" is registered in Delaware, is 100% owned by SBF, and has ~89% ownership of FTX Trading Ltd.
  - donedeals 4y ago
    It’s probably because the parentco is filing. Need to see the BK filing to understand.
  - kgwgk 4y ago
    According to the filing Paper Bird Inc. owns approximately 75% of FTX Trading Ltd. - the rest is owned by third party investors. https://qz.com/full-text-ftx-bankruptcy-filing-1849772656 https://qz.com/full-text-ftx-bankruptcy-filing-1849772656

hestefisk 4y ago

Group holdings yes, but the US exchange and some of their other acquisitions are in US. It seems to be quite an elaborate cluster of firms that have filed for bankruptcy, which makes me think maybe someone was doing funny stuff with money.

lost_tourist 4y ago
Or hoping they could limit damage to one corp, but in this case the big daddy corp is sinking screwing all its assets

jasonwatkinspdx 4y ago

The US company may be the only part of SBF's portfolio that's worth anything at this point. I assume it's inevitable it gets pulled in.

ucha 4y ago

None of the answers you received so far are correct. The holding company of the foreign entity is in the US and can thus file for ch11. See who owns FTX Trading Ltd (Antigua) for example: https://d1e00ek4ebabms.cloudfront.net/production/8566b562-d5e8-412d-80eb-77ff899f0d29.jpg https://d1e00ek4ebabms.cloudfront.net/production/8566b562-d5...