FTX’s Bahamas unit seeks Chapter 15 bankruptcy protection

FTX’s Bahamas unit, FTX Digital Markets, is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code, a court filing showed on Tuesday.

Such a move allows a foreign debtor to shield assets in the country. Non U.S.-companies use the measure to block creditors who want to file lawsuits or tie up assets in the United States.

Parent FTX filed for bankruptcy on Friday in one of the highest-profile crypto blowups, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.