According to Reuters, FTX's Bahamas-based liquidators said they "reject the validity" of the crypto exchange's U.S. bankruptcy proceedings, according to court documents filed in the U.S. late Tuesday.

FTX and 130 affiliates filed for bankruptcy in the U.S. on Nov. 11, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars. But its Bahamas subsidiary FTX Digital Markets entered liquidation proceedings first, and its court-appointed liquidators said late Tuesday that their case may "impact" FTX's effort to reorganize in the U.S.