The founder and CEO of an Africa-focused payments company, Elizabeth Rossiello, claimed on Nov. 11 that beleaguered crypto exchange FTX wrongly included AZ Finance in its Chapter 11 bankruptcy protection filing. CEO insisted his company did not hold client funds and was taking steps to correct the “erroneous court documents”.
AZA Finance does not hold user funds
AZ Finance founder and CEO Elizabeth Rossiello criticized her company’s “erroneous inclusion” in FTX’s November 11 Chapter 11 bankruptcy filing. According to Rossiello, not all AZA Finance entities are affected by the bankruptcy of the collapsed crypto exchange. She said steps were being taken to correct what she described as an erroneous court filing.
As reported by Bitcoin.com News, FTX has listed AZA Finance among 134 entities that will be included in the bankruptcy process. Under US bankruptcy laws, an entity that fails to meet its obligation seeks protection under Section 11 of the United States Bankruptcy Code. This step allows the failing entity to recapitalize and possibly emerge from bankruptcy with more equity than debt.
However, in a statement released 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 cryptocurrency. digital assets on behalf of clients.
“AZA Finance is licensed in several jurisdictions as a payments provider. We do not hold client funds and never have. Less than 10% of our transactions across all of our entities are through digital currencies,” Rossiello explained.
Helping FTX Build Safe and Regulated Payment Rails
In the statement, Rossiello acknowledges that his company partnered with FTX Africa earlier in the year. However, according to the CEO, AZA Finance’s so-called business partnership with FTX was aimed at helping the crypto exchange expand Web3 in Africa. This would be done by “helping them build regulated, safe and low-cost payment rails, as well as other initiatives discussed but not yet launched such as African artist NFT [non-fungible tokens] collections. »
Therefore, instead of owning AZA Finance, the crypto exchange became a client of the payment company. 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 disorganized haste, FTX mistakenly listed our entities in its bankruptcy filing.
In the statement, Rossiello goes on to name more than 20 entities that “are in no way affected by FTX’s bankruptcy.” The CEO ended her statement by urging other fintechs to “adhere to global regulations and industry best practices.”
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