FTX Seeks Turkish Units Bankruptcy Case Removal
Crypto exchange FTX is seeking to remove Turkish units from the scope of its bankruptcy case, saying in a Friday court filing that Turkish authorities are unlikely to follow instructions from U.S. courts.
FTX filed for bankruptcy on Nov. 11 in the U.S., and its new owners are attempting to unwind the affairs as many as 134 entities across the world.
Within days of the bankruptcy, Turkish law enforcement announced a probe into FTX’s activities, and on Nov. 23 ordered the seizure of virtually all its assets – making it fruitless to include them in wider restructuring plans, the new U.S. management said.
The request concerns FTX Turkey, a local exchange 80% owned by parent company FTX Trading Ltd; and SNG Investments, a wholly-owned subsidiary of FTX’s trading arm Alameda Research. Both are described in the filing as “not strategic” within the corporate group, with assets and activities largely confined to Turkey.
The parent company can still take action under Turkish law, and some Turkish creditors have already started filing private claims in local courts, the filing said.
(With inputs from Shikha Singh)
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