Elizabeth Rossiello was the founder and CEO a payments firm that is Africa-focused. She claimed that the beleaguered cryptocurrency exchange FTX had incorrectly added AZ Finance to its chapter 11 bankruptcy protection file. 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 claimed that corrective actions were being taken to correct the erroneous filing.
Bitcoin.com News reported that FTX listed AZA Finance as one of the 134 entities to be included in the bankruptcy proceedings. A bankruptcy filing under the United States Bankruptcy Code allows an entity that fails its obligations to file for protection under Chapter 11 of the United States Bankruptcy Act. This allows the defaulting entity, to recapitalize and eventually emerge with more equity than its debt, to take this step.
However, in a statement issued on the same day that 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 have customer funds and never held them. Less than 10% of our transactions across all of our entities are via digital currencies,” explained Rossiello.
Helping FTX to Build Safe and Regulated Payment Railroads
Rossiello admits in the statement that her company has partnered earlier this year 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.”
Instead of being AZA Finance’s owner, the crypto-exchange became a customer. The CEO stated:
Neither FTX or any of its associated entities control AZA Finance, or any of our entities including BTC Africa. Our entities are not included in the FTX bankruptcy. FTX listed our entities incorrectly in their bankruptcy filings in disorganised haste.
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.”
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Terence Zimwara, a Zimbabwean journalist, author and writer, is an award-winning journalist. He has written extensively on the economic problems of certain African countries and how digital currencies can offer Africans an escape route.
Image Credits – Shutterstock, Pixabay and Wiki Commons
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