FTX Wants Dubai Unit Removed from US Bankruptcy Process

FTX wants its subsidiary based in Dubai to be excluded
from its ongoing bankruptcy proceedings in the US. According to a court
document filed today (Thursday), the bankrupt cryptocurrency exchange argued
that this step would allow for a timely distribution of money owed to creditors.

“Additionally, FTX
Dubai is balance sheet-solvent,” the
filing stated. “Therefore, the debtors believe that a solvent
voluntary liquidation procedure in accordance with the laws of the United Arab
Emirates would allow a timely distribution of the positive cash balance after
payment of all outstanding liabilities and liquidation of all assets.”

Besides that, the
debtors of the exchange told the court that excluding FTX
Dubai from the
bankruptcy proceedings in the US would enable the company to meet its immediate
obligations, such as paying wages and salaries. The matter was filed in the US
bankruptcy court for the District of Delaware and is scheduled to be heard on
August 23.

After FXT
filed for bankruptcy in
November last year, the company began bankruptcy
Bankruptcy

Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co

Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co
Read this Term cases for more than 100
of its affiliated entities, including FTX Dubai. The subsidiary, which is owned
by FTX Europe, was created in February 2022. However, according to Thursday’s
filing, FTX Dubai did not…