Dec 14 (Reuters) – Lawyers for the bankrupt crypto exchange FTX on Wednesday opposed a demand for internal records from an insolvent affiliate based in the Bahamas, saying they “do not trust” the Bahamian government with data that could be used to siphon off assets from the bankrupt company.
Liquidators of FTX’s Bahamian business, FTX Digital Markets, had asked U.S. Bankruptcy Judge John Dorsey to give them access to the U.S. unit’s Slack, Google and Amazon Web Services accounts and data.
At a court hearing in Delaware, lawyers for FTX asked Dorsey to deny the request. They argued that Bahamian regulators had worked with FTX’s founder, the recently arrested Sam Bankman-Fried, to undermine the U.S. bankruptcy case and withdraw assets to the detriment of some creditors.
FTX attorney James Bromley told Dorsey that the Bahamian government has previously obtained information from FTX Digital Market’s liquidators and used it to siphon digital assets away from FTX.
“This is dangerous information,” Bromley said. “We do not trust the Bahamian government.”
The Securities Commission of the Bahamas (SCB) has previously disputed FTX’s “misstatements” about the Bahamian government‘s response to FTX’s collapse.
Asked for comment on Wednesday, the SCB said it “is not