FTX Collapse: Africa-Focused Payments Firm AZA Finance Slams ‘Erroneous Inclusion’ in FTX Bankruptcy Filing

FTX Collapse: Africa-Focused Payments Firm AZA Finance Slams 'Erroneous Inclusion' in FTX Bankruptcy Filing

The founder and CEO of an Africa-focused payments firm, Elizabeth Rossiello, claimed on Nov. 11 that the beleaguered crypto exchange FTX had incorrectly included AZ Finance in its chapter 11 bankruptcy protection filing. The CEO insisted that her firm does not hold customer funds and is presently taking steps to correct the “erroneous court filings.”

AZA Finance Does Not Hold Users’ Funds

The founder and CEO of AZ Finance, Elizabeth Rossiello, has slammed the “erroneous inclusion” of her firm in FTX’s Nov. 11 chapter 11 bankruptcy filing. According to Rossiello, all AZA Finance entities are not affected by the collapsed crypto exchange’s bankruptcy. She said steps were being taken to correct what she described as erroneous court filing.

As reported by Bitcoin.com News, FTX listed AZA Finance among the 134 entities that will be included in the bankruptcy process. Under the United States bankruptcy laws, an entity that fails to meet its obligation can file for protection under Chapter 11 of the United States Bankruptcy Code. Taking this step allows the defaulting entity to recapitalize and eventually emerge from bankruptcy with more equity than debt.

However, in a statement issued on the same day the crypto exchange filed for bankruptcy, the “shocked and disappointed” CEO claimed that unlike FTX, which is accused of misappropriating user funds, AZA Finance does not store digital assets on behalf of customers.

“AZA Finance is licensed in multiple jurisdictions as a payments provider. We do not hold customer funds and never have. Less than 10% of our transactions across all of our entities are via digital currencies,” explained Rossiello.

Helping FTX Build Safe and Regulated Payment Rails

In the statement, Rossiello acknowledges that her company had earlier in the year partnered with FTX Africa. However, according to the CEO, AZA Finance’s so-called commercial partnership with FTX was intended to help the crypto exchange expand Web3 in Africa. This would be done by “helping them build regulated, safe and low-cost payments rails, as well as other discussed but not-yet-launched initiatives such as African artist NFT [non-fungible tokens] collections.”

Therefore, instead of being an owner of AZA Finance, the crypto exchange went on to become a customer of the payments firm. The CEO added:

Neither FTX nor any of its associated entities own or control AZA Finance or our entities, including BTC Africa. Our entities are not part of the FTX bankruptcy. In its disorganised haste, FTX erroneously listed our entities in their bankruptcy filing.

In the statement, Rossiello goes on to name more than 20 entities that “are not impacted by the FTX bankruptcy in any way.” The CEO ended her statement by urging other fintechs to “adhere to global regulation and industry best practices.”

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Crypto Crisis Pushes BTC Mining Difficulty To Bottom Spot, Any Possibility Of Reversal?

The low profitability of BTC mining is still puzzling for many crypto fanatics and investors. There’s no surprise here, given the ever-increasing energy costs. Moreover, the bear market is also significantly impacting Bitcoin’s mining difficulty. As for now, making reasonable profits from mining Bitcoin is not probable. This fact, however, doesn’t imply that BTC mining

Bitcoin (BTC) Price Dump Incoming? On-Chain Data Reveals Bottom

Bitcoin (BTC) price failed to hold above $17k and fell to the support near $16,500 again. The BTC price remains under pressure as miner capitulation risk continues to haunt traders looking to make long positions. On-chain data reveals miners are indeed liquidating their Bitcoin holdings due to financial constraints. The effect can be easily seen