FTX Turkeywill be excluded from bankruptcy proceedings in the US after the bankrupt crypto exchange said officials in the country were unlikely to cooperate with US courts.
US Judge Approves FTX Turkey’s Exclusion from Bankruptcy Case
Crypto exchange FTX had asked the court to allow the exclusion of the units after Turkish authorities ordered the confiscation of most of their assets in the country.
Delaware Bankruptcy Court Judge John T. Dorsey signed an order yesterday confirming the dismissal of the lawsuit, in response to a January request from representatives of the FTX exchange.
A few days after FTX filed for bankruptcy last November, Turkish law enforcement announced that the company’s domestic operations were under investigation and subsequently ordered the seizure of most of FTX’s assets in the country.
FTX’s new management in the US argued that it would be counterproductive to include FTX Turkey and SNG Investments, whose assets and operations are largely limited to Turkey, in their restructuring plans.
The court ruled that the request was “in the interest” of FTX and its properties. The parent company FTX Trading Ltd. While FTX owns 80% of Turkey, SNG Investments is fully owned by Alameda Research, FTX’s sister trading company.
As a result, the judge’s decision to dismiss the lawsuit against FTX’s Turkish assets will give the company the necessary breathing space to focus on its restructuring plans.
The outcome of the fraud case against Sam Bankman-Fried is still pending and will have a significant impact on the future of the FTX exchange and its subsidiaries.
*Not investment advice.
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