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FTX sues to remove Dubai division from bankruptcy proceedings

Bankrupt cryptocurrency exchange FTX sues movement It will go to court to remove the Dubai division from ongoing US restructuring lawsuits.
In a document submitted to the court on Aug. 2, FTX claimed that its Dubai division did no business before filing for bankruptcy; therefore, the grant is unlikely to reinstate its activities. The court will begin its first hearing on the issue on August 23.
In the document, the exchange emphasized that FTX Dubai is solvency in terms of balance sheet and therefore “a voluntary liquidation procedure in accordance with UAE law will allow timely distribution of positive cash balance after all outstanding debts have been paid and cleared”. of all beings”.
FTX Dubai is a wholly owned direct subsidiary of FTX’s European division licensed by the Dubai Virtual Asset Regulatory Authority (VARA) as a Virtual Asset Service Provider. FTX Dubai currently holds approximately $4.5 million in various accounts, of which $4 million is secured by VARA as license collateral.
On July 25, VARA confirmed that the money tied to the management of FTX Dubai will be released as part of the liquidation of FTX Dubai under UAE law:

“All assets of FTX Dubai are located in the UAE and substantially all of FTX Dubai’s pre-liability business is conducted in the UAE, Borrowers have decided that immediate local voluntary liquidation of FTX Dubai in accordance with UAE law is appropriate. It is in the best interests of the debtors and their assets. properly”.

Related: Which companies were hit hardest by the FTX crash?

FTX Dubai must enter into an agreement with the designated liquidator to implement basic administrative procedures and support the smooth and efficient management of the liquidation.
What FTX has introduced It filed for bankruptcy on November 11, 2022 and initiated bankruptcy proceedings for 102 related entities worldwide.

Translation of Walter Rizzo

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